Milk powder drops at latest Global Dairy trade auction as overall prices edge up, mixed reactions from sheep and beef sector on new climate proposals, and outgoing AgResearch chair celebrated for contributions to primary industries. Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather! Milk powder drops at latest Global Dairy trade auction as overall prices edge up The latest Global Dairy Trade auction has delivered a modest increase in overall prices, defying expectations of another decline. The GDT price index rose 0.4%, following a significant 6.9% drop at the previous auction. However, whole milk powder, which heavily influences Fonterra's farmgate milk price, fell 1.6% to US$3,142 per metric tonne. This marks the third consecutive auction where whole milk powder prices have decreased. Skim milk powder, another key product, also saw a decline of 1.1%, Mozzarella and lactose prices experienced slight decreases as well. On a more positive note, cheddar prices surged 6.2%, while anhydrous milk fat increased by 4%, butter prices also saw a modest gain of 0.8%. This mixed result comes at a time when New Zealand dairy farmers are closely watching market trends. While the overall price index has shown resilience, the continued decline in whole milk powder prices may raise concerns about future farmgate returns. Fonterra's current forecast farmgate price range remains between $7.25 and $8.75 per kilogram of milk solids, with a midpoint of $8. As the dairy season progresses, farmers and industry analysts will be keenly observing upcoming auctions for indications of longer-term price trends and their potential impact on New Zealand's crucial dairy sector. Mixed reactions from sheep and beef sector on new climate proposals Beef + Lamb New Zealand (B+LNZ) has expressed both support and concern in response to the Government's second emissions reduction plan consultation documents. Chair Kate Acland acknowledged that while the organisation is still analysing the materials, they plan to collaborate with farmers in the coming weeks to formulate a comprehensive response. A major concern for B+LNZ is the repeated mention of implementing a definite price on agricultural emissions by 2030. Acland argues that this measure is unnecessary for the sheep and beef sector, given the significant emissions reductions already achieved through afforestation in recent years. On a positive note, B+LNZ welcomes the government's intention to limit whole-farm conversions to forestry for carbon credits. The organisation has long been concerned about the scale and pace of such conversions, and supports the integration of trees within farms as a method to meet climate objectives. Acland emphasises that even with potential restrictions on afforestation, land-use change will continue. This ongoing shift, she argues, further undermines the need for pricing agricultural emissions. Instead, B+LNZ advocates for exploring alternative methods to achieve emissions reductions, suggesting New Zealand look to successful strategies from other countries, particularly those incentivizing technology use. The consultation documents' focus on mitigation technologies and increased recognition of on-farm sequestration is viewed favourably by B+LNZ. However, Acland notes that considerable detail still needs to be worked through with farmers. New national voice for catchment groups emerges Catchment groups across New Zealand now have a unified voice with the formation of the Aotearoa New Zealand Catchment Collective (ANZCC). This national organisation has recently appointed its first nine-member committee, representing diverse geographical areas and catchment realities. The ANZCC aims to advocate for ongoing, effective support of farmer- and community-led initiatives that have proven successful in addressing social and environmental issues in rural areas. The collective represents over 190 catchment groups nationwide and has gained support from the Ministry for Primary Industries. Jeff Grant, chair of the interim working group that established the ANZCC, emphasised the importance of this development, stating catchment groups need their own voice, and the new committee has the breadth of experience to advocate for collective catchment action. The committee includes members from various regions, such as Southland, Otago, Waikato, and Hawke's Bay. Among them is Rick Burke, whose catchment group, Project Parore, was recently named 2024 Freshwater Champion at the National Freshwater Champions Award ceremony. The ANZCC's primary focus is ensuring that catchment groups have the necessary resources, support, and capability to make a positive impact. These community-led groups have a proven track record of addressing local issues with innovative solutions, connecting experts, regional councils, landowners, and urban residents. This ...
