January 7, 2025 • 4 mins
Dairy farmers are hoping for a win at the Global Dairy Trade auction following a slip in the latest prices.
The first auction of the year this morning has overall dairy prices down 1.4% and the price of whole milk powder down 2.1%.
Fonterra Cooperative Council Chair John Stevenson says it's still a great time to be a farmer in New Zealand.
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Speaker 1 (00:09):
You're listening to a podcast from news Talk zed Be
follow this and our wide range of podcasts now on iHeartRadio.
Speaker 2 (00:16):
And we had the first global dairy Trade auction of
twenty twenty five this morning. The results aren't quite as
grand as what we're hoping. The overall dairy trade price
index was down one point four percent, with the whole
milk powder price being down two point one percent. Despite
the setback, there's still hope Fonterra's farmgate milk price could
(00:37):
top ten dollars this year. And joining me now is
Fonterra Cooperative Council chair John Stevenson.
Speaker 3 (00:43):
Good morning, Yeah, very good morning to you as well. Tim.
Speaker 1 (00:46):
Gooday.
Speaker 2 (00:47):
Are you happy with this result or where are we at?
Speaker 3 (00:51):
I think, you know, it's a small drop GDT as
a reflection at global markets, so it's not surprising to
see it move around a little bit. But I suppose
looking at it, a negative number, Tim's not as good
as a positive number. But you know, we're a long
way from the end of the season at the stage.
Speaker 2 (01:09):
What was your what was your best guest leading into
the auction?
Speaker 3 (01:13):
I think relatively flat. I think what we've heard from
Fonterra is that, you know, buying buying can be a
little bit quiet at this time of year. That the
numbers show that they did shift quite a bit a
bit of product, just over thirty thousand tons, but well
as farmers. We look forward to receiving a further update
later today with some more details around the auction.
Speaker 2 (01:33):
How dairy farmers faring right now.
Speaker 3 (01:36):
I think it's a it's a really good time to
be a dairy farmer. Tim you know, you mentioned in
your intro forecast farm gate milk price of ten dollars
or the midpoint of ten dollars at the moment, that's,
you know, historically as high as it's been, so it's
a really good time to be a farmer. We've seen
good growing conditions for most of the country some farmers.
(01:57):
We're getting dry along that East coast and December, and
we've seen some pleasant rain over the New Year's period,
which is good for farmers, not so good for holiday
makers get in the bottom of the South Island. We've
seen some pool weather earlier in the season. But overall,
good time to be a dairy farmer and good for
our communities as well.
Speaker 2 (02:14):
Stuff. Thanks for reminding me when I'm grizzling about the
wet weather that you guys love it at this time
of year. Now, the boost in the price last year,
which was welcome, what what actually has driven the prices
up recently?
Speaker 3 (02:28):
What we've heard from Fonterra with their interpretation of the
markets has been you're a number of factors in place.
So we've seen some some restrictions around the available dairy
cow numbers or dairy heaper numbers in the US. We've
seen some some disease in the in the EU that's
(02:48):
that's impacted their production. I think overall, we're seeing, you know,
the ability to produce face face some challenges environmentally. So
it's a supply and demand story. So naturally, you know,
with those big exporting markets of the EU in the US,
if they faced some challenges, there's an opportunity for us
(03:09):
to put most of our product done in there.
Speaker 2 (03:12):
And we said that what are your realistic hopes and
dreams for farmers for twenty twenty five with prices?
Speaker 3 (03:18):
I think, you know, sort of stability is what we
really look for as farmers. Tim you know, we we
forward book a lot of our costs, so if we
can see stability around prices, that's that's really good and
obviously at a at a high level, that that means
that we can we can continue to pay down a
bit of debt, invest invest in some some capital expenditure
(03:40):
which which probably has been deferred over the last couple
of years, and you know, set ourselves up for hopefully
a good end of this season, in a in a
really good start to next season as well.
Speaker 2 (03:51):
Good stuff. Hey, just quickly before you go, what did
you make of PETA, the animal rights group wanting to
put cameras in all the New Zealand's sharing sheds.
Speaker 3 (03:59):
Yeah, interesting comments. I just picked up on that this morning.
Obviously sort of outside of outside of the dairy farming
around that, I've got plenty ofmates that are sheep and
bee farmers. Yeah, I think it's a bit of a
shot in the dark from from my perspective. You know,
clearly we all face some challenges with the with the
bottom bottom bottom one or less than one percent of
(04:21):
an any industry and not just birming related. And you know,
I've got a great deal of confidence that that sheep
farmers much like dairy farmers. You know, animals are our livelihoods.
So it's really important that we look after them. I
wouldn't have any concerns that that would justify actions like
that good stuff.
Speaker 2 (04:40):
Hey, John, I really appreciate your time. Thanks so much.
That is a Fonterra Cooperative Council Chair John Stevenson.
Speaker 1 (04:46):
For more from News Talks' b listen live on air
or online, and keep our shows with you wherever you
go with our podcast on iHeartRadio
You're listening to a podcast from news Talk zed Be
follow this and our wide range of podcasts now on iHeartRadio.
Speaker 2 (00:16):
And we had the first global dairy Trade auction of
twenty twenty five this morning. The results aren't quite as
grand as what we're hoping. The overall dairy trade price
index was down one point four percent, with the whole
milk powder price being down two point one percent. Despite
the setback, there's still hope Fonterra's farmgate milk price could
(00:37):
top ten dollars this year. And joining me now is
Fonterra Cooperative Council chair John Stevenson.
Speaker 3 (00:43):
Good morning, Yeah, very good morning to you as well. Tim.
Speaker 1 (00:46):
Gooday.
Speaker 2 (00:47):
Are you happy with this result or where are we at?
Speaker 3 (00:51):
I think, you know, it's a small drop GDT as
a reflection at global markets, so it's not surprising to
see it move around a little bit. But I suppose
looking at it, a negative number, Tim's not as good
as a positive number. But you know, we're a long
way from the end of the season at the stage.
Speaker 2 (01:09):
What was your what was your best guest leading into
the auction?
Speaker 3 (01:13):
I think relatively flat. I think what we've heard from
Fonterra is that, you know, buying buying can be a
little bit quiet at this time of year. That the
numbers show that they did shift quite a bit a
bit of product, just over thirty thousand tons, but well
as farmers. We look forward to receiving a further update
later today with some more details around the auction.
Speaker 2 (01:33):
How dairy farmers faring right now.
Speaker 3 (01:36):
I think it's a it's a really good time to
be a dairy farmer. Tim you know, you mentioned in
your intro forecast farm gate milk price of ten dollars
or the midpoint of ten dollars at the moment, that's,
you know, historically as high as it's been, so it's
a really good time to be a farmer. We've seen
good growing conditions for most of the country some farmers.
(01:57):
We're getting dry along that East coast and December, and
we've seen some pleasant rain over the New Year's period,
which is good for farmers, not so good for holiday
makers get in the bottom of the South Island. We've
seen some pool weather earlier in the season. But overall,
good time to be a dairy farmer and good for
our communities as well.
Speaker 2 (02:14):
Stuff. Thanks for reminding me when I'm grizzling about the
wet weather that you guys love it at this time
of year. Now, the boost in the price last year,
which was welcome, what what actually has driven the prices
up recently?
Speaker 3 (02:28):
What we've heard from Fonterra with their interpretation of the
markets has been you're a number of factors in place.
So we've seen some some restrictions around the available dairy
cow numbers or dairy heaper numbers in the US. We've
seen some some disease in the in the EU that's
(02:48):
that's impacted their production. I think overall, we're seeing, you know,
the ability to produce face face some challenges environmentally. So
it's a supply and demand story. So naturally, you know,
with those big exporting markets of the EU in the US,
if they faced some challenges, there's an opportunity for us
(03:09):
to put most of our product done in there.
Speaker 2 (03:12):
And we said that what are your realistic hopes and
dreams for farmers for twenty twenty five with prices?
Speaker 3 (03:18):
I think, you know, sort of stability is what we
really look for as farmers. Tim you know, we we
forward book a lot of our costs, so if we
can see stability around prices, that's that's really good and
obviously at a at a high level, that that means
that we can we can continue to pay down a
bit of debt, invest invest in some some capital expenditure
(03:40):
which which probably has been deferred over the last couple
of years, and you know, set ourselves up for hopefully
a good end of this season, in a in a
really good start to next season as well.
Speaker 2 (03:51):
Good stuff. Hey, just quickly before you go, what did
you make of PETA, the animal rights group wanting to
put cameras in all the New Zealand's sharing sheds.
Speaker 3 (03:59):
Yeah, interesting comments. I just picked up on that this morning.
Obviously sort of outside of outside of the dairy farming
around that, I've got plenty ofmates that are sheep and
bee farmers. Yeah, I think it's a bit of a
shot in the dark from from my perspective. You know,
clearly we all face some challenges with the with the
bottom bottom bottom one or less than one percent of
(04:21):
an any industry and not just birming related. And you know,
I've got a great deal of confidence that that sheep
farmers much like dairy farmers. You know, animals are our livelihoods.
So it's really important that we look after them. I
wouldn't have any concerns that that would justify actions like
that good stuff.
Speaker 2 (04:40):
Hey, John, I really appreciate your time. Thanks so much.
That is a Fonterra Cooperative Council Chair John Stevenson.
Speaker 1 (04:46):
For more from News Talks' b listen live on air
or online, and keep our shows with you wherever you
go with our podcast on iHeartRadio
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