Connect with us
2022 Green Living Expo
The Northern Rivers Times
The Northern Rivers Times | NSW Northern Rivers News
2022 Green Living Expo NEWSLETTER Horizontal
Facebook and Website Banner 81
The Northern Rivers Times | NSW Northern Rivers News
previous arrow
next arrow

Northern Rivers & Rural News

Global dairy markets “teetering on the edge”

Published

on

Global dairy markets “teetering on the edge”

Global dairy markets “teetering on the edge”

Global dairy markets are “teetering” at low milk production levels not seen since 2014, Rabobank says in its just-released Q4 Global Dairy Quarterly report.
The agribusiness banking specialist says weather-related issues have decimated peak milk production in New Zealand and Australia, while supply growth has also been stymied in the US and Europe by squeezed profit margins for producers.
This has resulted in a year-on-year global milk production deficit that is too deep to be offset by favourable milk production gains seen in South America, it says.
The report says – after nine consecutive quarterly increases – combined global milk supply growth in the major dairy-exporting regions halted in quarter three this year and will dip into negative territory in quarter four.
Report co-author, Rabobank senior dairy analyst Michael Harvey said combined quarter four milk production in the big seven dairy exporting regions – New Zealand, Brazil, Argentina, Uruguay, EU, US and Australia – is expected to decline by 0.3 per cent compared with quarter four last year. This will be the first quarterly year-on-year decrease since 2019.
The report said farmgate milk prices have followed commodity prices higher worldwide, with more potential upside still to come in some regions. Still, rising costs for inputs, labour shortages, unfavourable weather and questionable feed quality will limit the production response by producers, it said.
Global dairy exports have slowed in response to logistic disruptions, rising transportation costs, and elevated commodity prices.
“Global dairy exports based on product volume ran seven per cent ahead of the prior year during the first half of 2021, but slowed to one per cent in July and August,” the report said.

Chinese demand
Mr Harvey said a slowdown in demand for dairy inputs from China is expected and is needed to cool global prices in the face of limited supply-side increases.
“Chinese buyers are torn between the bullish sentiment outside China and the current weak fundamentals within China to decide whether, when, and at what price levels they should return to the market,” he said.

Inflation pressures
Despite rising inflationary pressures, consumers have yet to face “sticker shock” (where higher prices become a deterrent) for dairy products in most countries, the Rabobank report said, and this is supporting demand. That would not be the case in 2022, it said, as higher commodity prices from the second half of 2021 are passed through to consumers.
In addition, Mr Harvey said, new variants of Covid-19, inflation, labour and logistic challenges, along with others weigh on the global economic recovery with the potential for global dairy markets to “teeter or totter”.

NZ market impact
A sluggish spring milk production peak in New Zealand – the world’s largest dairy exporter – also contributed to a global supply slow down.
Mr Harvey said New Zealand milk production has only recently started to benefit from more sunshine and warmth for much of the country.
“Unfortunately, the change to more favourable weather was too late for the peak milk month of October, when collections dropped by 3.3 per cent year on year. There have now been three consecutive months of milk supply slipping backward against 2020 since August 2021,” he said.
“Rabobank’s New Zealand milk production forecast for the entire 2021/22 season is -1 per cent year-on-year. In a high milk-price environment and depending on cow condition, it is possible that there will be a late run to recover some of the lost production so far. But our base case assumes the weaker peak will be hard to recoup across the season – especially given lingering challenges to milk production in parts of Canterbury and in addition to high comparables to match from February onwards,” he said.

For Australia
For Australia, the Dairy Quarterly report said, many dairy farms had been dealing with a wet spring – particularly in Victoria and Tasmania.
October – peak dairy production in Australia – saw output down 2.1 per cent below last year. This means season-to-date production is down 2.9 per cent, Mr Harvey said.
Rabobank has lowered its milk production forecast, to -1.8 per cent for the 2021/22 season, back to 8.68 billion litres.
Mr Harvey said dairy companies in Australia’s southern export region are upwardly adjusting their initial (June) announced farmgate milk prices.
“Fonterra Australia and Saputo Dairy Australia both lifted prices to AUD 7.05/kgMS or more. There is potential for further increases as dairy exporters benefit from higher commodity prices, particularly skim milk powder. But there are lingering headwinds for local dairy exporters given the weaker-than-expected spring flush and ongoing supply chain bottlenecks and disruptions,” he said.
Rabobank’s revised farmgate milk modelled price for 2021/22 stands at AUD 7.75/kgMS, underpinned by rising commodity prices and a weaker currency.
“Australian dairy farmers continue to enjoy good margins,” Mr Harvey said “There are, though, production and margin risks beyond the weather, which will remain into the new year. Input costs have spiked for fertiliser and herbicide, with supply risks lurking in the next few months.”
Mr Harvey said high water allocations and healthy soil moisture profiles for irrigated dairy farmers in the southern Murray-Darling Basin will provide good prospects for summer feed crops.
“Rabobank also forecasts another large Australian winter grain crop for 2021/22. This will be welcome news for feed purchases – but noting global prices are supporting local prices,” he said.
The report says Australia’s food market is once again on the road to recovery.
“The Australian economy will grow in 2022, but consumers will face rising costs of living and food inflation including in the dairy aisle,” Mr Harvey said.
Australian dairy exports have remained buoyant through the nine months of the year, according to the Dairy Quarterly. Export volumes are higher across all the major commodities. Liquid milk exports have been strong, underpinned by Chinese demand with volumes 25 per cent higher. Exports of skim milk powder and butter have also performed well.

Northern Rivers & Rural News

Farmers get their say on land use

Published

on

By

NSW Northern Rivers Breaking News

Farmers get their say on land use

The fight between farmers and developers could be a thing of the past thanks to a new mapping project that will shape future regional planning decisions.

With agriculture, urban development, renewable energy infrastructure and other land use interests competing for space in our increasingly busy regional areas, NSW Farmers is urging landholders to have their say on State Significant Agricultural Land mapping.

NSW Farmers Vice President Xavier Martin said it was an important process that would help protect farmers from conflicting land uses into the future.

“Farmers are being given a direct opportunity to have their say on the important issue of land use planning, and this could set the course for years to come as land use interests in regional areas grow,” Mr Martin said.

“Unfortunately, agricultural land can be viewed as a default zone when it comes to matters such as urban expansion, energy infrastructure and mining.

“There’s a finite amount of land suitable for agriculture and at the moment, we are losing it in a very fragmented way, but the state government’s mapping exercise is an opportunity to resolve that poor outcome.”

Mr Martin said the NSW Government’s understanding of the regional and state significance of agricultural areas would go a long way to minimising future conflict.

“The understanding of high value agricultural land must be multi-faceted, taking into consideration soil quality, yield, adaptability, proximity to export hubs and regional importance,” Mr Martin said.

“If the government is to identify and protect agricultural land on a tiered basis, then they need to understand what makes land strategically important – and farmers will be the repository of that knowledge.

“The goal of NSW Farmers advocacy in the land use space is to ensure agriculture is being considered in land use decisions. We need to start somewhere, and this mapping is the starting point.”

While the first iteration of the government’s mapping is not perfect, Mr Martin said consultation and refinement would help produce a planning tool that benefits landholders.

Consultation on the first State Significant Agricultural Land mapping is open until late January 2022 and the NSW Department of Primary Industries is welcoming input from farmers.

Continue Reading

Northern Rivers & Rural News

Northern NSW farmers to have their say on climate, regional opportunities

Published

on

By

The Northern Rivers own newspaper

Northern NSW farmers to have their say on climate, regional opportunities

Friday, 10 December 2021. From Taree to Lismore, Northern NSW farmers can have their say on what Australia’s climate policy should look like at one of Farmers for Climate Action’s end-of-year catch-ups next week.

The seven networking events, created by farmers for farmers passionate about a better climate future, are an opportunity to be updated on Australia’s climate policy, share local insights and learnings from the year, and ensure we’re feeding the right climate solutions back to industry and decision-makers.

The 1.5-hour sessions will run from Monday 13 December to Wednesday 15 December in the following locations:

Taree: Monday 13 December from 6.30pm at the Caravilla Motor Inn Bistro
Port Macquarie: Tuesday 14 December from 9am at Hibbard Sports Club
Dorrigo: Tuesday 14 December from 1.30pm at the Food Angel Cafe
Bellingen: Tuesday 14 December from 630pm at Bellingen Riverside Cottages
Grafton: Wednesday 15 Dec from 9.30am at Vines at 139
Kyogle: Wednesday 15 December from 2pm at Sugarbowl Cafe
Lismore: Wednesday 15 December from 6.30pm at the Lismore Workers Club mezzanine

Peter Holding, third-generation Harden farmer and FCA community outreach officer said:

“Here’s your opportunity to meet like-minded farmers and compare notes on the year we’ve had. We can have a frank discussion about where Australia’s climate policy is at and, more importantly, what this means for our region and livelihoods.

“Farmers are on the front lines of climate change, with many of us in this region living through droughts, floods, bushfires and more.

“Strong climate policy creates a raft of opportunities for regional Australia and we want Northern NSW farmers to be central to the conversation to ensure we get the best opportunities for the region.”

The events will be free of charge. RSVPs are essential and refreshments will be provided. To register visit www.farmersforclimateaction.org.au/events.

Farmers for Climate Action is a movement of almost 7000 farmers and agricultural leaders working to ensure that farmers, who are on the frontlines of climate change, are part of its solution.

Continue Reading

Northern Rivers & Rural News

NEW GENE TECHNOLOGIES TO DOUBLE FARM PRODUCTIVITY

Published

on

By

Minister Marshall - Advanced Gene Technology Centre
Minister Marshall - Advanced Gene Technology Centre

NEW GENE TECHNOLOGIES TO DOUBLE FARM PRODUCTIVITY

The State’s primary producers will be amongst the first in the world to benefit from cutting-edge advances in genetic technologies with the completion of the NSW Department of Primary Industries (DPI) Advanced Gene Technology Centre.

Minister for Agriculture Adam Marshall officially opened the Centre today and said the NSW Government had provided $4.1 million in funding for the project at the Wagga Wagga Agricultural Institute.

“Plants and livestock will be more resilient to the challenges of drought, frost and salinity, as well as more resistant to pests and disease thanks to the research coming out of our new Advanced Gene Technology Centre,” Mr Marshall said.

“By building advanced infrastructure, we equip our scientists with the capabilities to be at the forefront of scientific advancements, including fast-tracking new opportunities to selectively alter genes and pathways.

“Over the next 20 years, we expect the rates of genetic gain in NSW to more than double.

“Advanced genetic technologies, including synthetic biology, gene editing, environmental DNA, and rapid complete genome sequencing and analysis, are all key sciences likely to transform the productivity and biosecurity of our primary industries.

“Investments in projects such as the Advanced Gene Technology Centre cement NSW as a world leader in agricultural, biosecurity and fisheries research.”
Mr Marshall said the funding was part of the NSW Government’s $100 million package invested into research infrastructure to support world-class food and fibre production.
“The NSW Government will continue to invest in the Wagga Wagga Agricultural Institute and the Elizabeth Macarthur Agricultural Institute to build laboratory and grow-out facilities,” Mr Marshall said.

The investment in the State’s research and development portfolio is part of the NSW Government’s $240 million Bushfire Restart funding.

More information on the NSW Government’s World-Class Food and Fibre Program is available on the NSW DPI website.

Continue Reading

Latest News

Subscribe for our newsletter!

error: Alert: Content is protected !!