If you can take an animal home from the market, you have a choice. There is no such option for New Zealand’s milk suppliers as they enter the new production year with their hugely seasonal supply.
New Zealand dairy spring calving grass cows milking Fonterra Canterbury
ADVERTISEMENT
Farmers, by nature, have a tendency to favour the free market and understand that prices can go up or down according to the balance of supply and demand. None more so than the New Zealand farmers, with their Global Dairy Trade internet auction.
But we all know that when there is no enthusiasm around an auction ring, the prices can fall sharply to unrealistic levels when supply marginally exceeds demand. This has happened with the GDT auction.
If you can take an animal home from the market, you have a choice. There is no such option for New Zealand’s milk suppliers as they enter the new season with their hugely seasonal supply. Even if 150,000 extra cows are being culled, it won’t stop the tide of milk that will be flowing off farms in New Zealand in the next few months.
ADVERTISEMENT
The resulting pressure on prices coincides with the extension of the Russian ban on importation of various products from the European Union. Producers are the fall guys in a geopolitical dispute. Heads of state who have taken a stance over Russia and Ukraine should face up to the unintended consequences and empower the EU to put a realistic base in the market.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
However, if you would like to share the information in this article, you may use the headline, summary and link below:
Title: Dairy market needs a floor
If you can take an animal home from the market, you have a choice. There is no such option for New Zealand’s milk suppliers as they enter the new production year with their hugely seasonal supply.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Farmers, by nature, have a tendency to favour the free market and understand that prices can go up or down according to the balance of supply and demand. None more so than the New Zealand farmers, with their Global Dairy Trade internet auction.
But we all know that when there is no enthusiasm around an auction ring, the prices can fall sharply to unrealistic levels when supply marginally exceeds demand. This has happened with the GDT auction.
If you can take an animal home from the market, you have a choice. There is no such option for New Zealand’s milk suppliers as they enter the new season with their hugely seasonal supply. Even if 150,000 extra cows are being culled, it won’t stop the tide of milk that will be flowing off farms in New Zealand in the next few months.
The resulting pressure on prices coincides with the extension of the Russian ban on importation of various products from the European Union. Producers are the fall guys in a geopolitical dispute. Heads of state who have taken a stance over Russia and Ukraine should face up to the unintended consequences and empower the EU to put a realistic base in the market.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS