Increased development of large-scale dairy farms and falling feed prices have driven China’s raw milk production up - and the official price down.
The current price is 3.23RMB/kg liquid milk - the lowest in 12 years, according to new data.
The Country's Jamie Mackay explains what this means for New Zealand.
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Speaker 1 (00:00):
Your ruerboard on the Evin du Per se Eland Drive
with n's Kofoods, New Zealand's Finest Beef and Lamb.
Speaker 2 (00:08):
Now to talk rural, we've got Jamie McKay, host of
the Country and from the Country dot Co dot NZ.
Hello Jamie good Andrew.
Speaker 3 (00:16):
Hey, look, I'm wondering whether maybe someone should Dr Rod Carr,
the Climate Change Commissioner or the chairman and tell him
not to venture into rural New Zealand because he's ruffled
a few feathers today.
Speaker 2 (00:28):
All right, so this is so you actually broke out,
broke down a little bit there. So this is kind
of Change Commission Chair Dr Rod Carr, who says it
is not true to say pharmacy to wait for new
technology before they can lower their planet heating commissions. They
can do it now.
Speaker 3 (00:43):
Here. Well, it's interesting, he said. The idea that and
I hope you can hear me Andrew apologize for the reception.
He said, the idea that farmers have no tools and
must wait for new things before they can reduce emissions
is simply not true. We know different feeding practices are
associated with different missions. We know different breeds and breed
with breeds within breeds are associated with different emissions. Now,
(01:07):
this got a strong rebuke from Mark Cameron, who's one
of the act agricultural spokespeople. He's also a Northland Kalkaki.
He said, well, mister Carr, it's about time you visited
rural New Zealand before making in accurate statements about on
farm practice. Has a thought for URRT, He writes, the
Climate Change Commissioner should tell rural people what bovine breeds
(01:30):
and what breeds within breeds. He's specifically talking about that
he states had such different emissions profiles New Rural and
New Zealand is waiting with baited breath for the answer
to that one.
Speaker 1 (01:41):
Yeah.
Speaker 3 (01:41):
So look he's going out all guns blazing, doctor Rhard.
He's never been afraid to speak out. It'll be fair
to say he's probably not the post popular man in
the rural New Zealand.
Speaker 2 (01:51):
Good seth, Look this is starting to worry me. Development
of large scale dairy farms and forming feed prices are
driving China's raw milk action app and the official price down.
They're getting good at this stuff.
Speaker 3 (02:03):
Yeah, they are getting really good at it. And I've
been trading for a lot longer than us and it's
a bit of a worry if they start moving some
of their production Andrew onto the world stage. Interestingly, that
the current price they're being paid in China at the
moment in New Zealand dollar equivalents about nine dollars per
kilogram of milk solid, so it's still above ours. But
their cost of production is quite a bit higher than ours,
(02:25):
obviously because it's all it's mainly bought in feed, whereas
our dairy system is pasture based. So China's raw milk
production's gone up one percent in May year on year,
two point three percent growth in April, and we're looking
at possibly because we're not sure of these numbers coming
out of China eight point six percent per annum twenty
(02:45):
twenty two are two point nine twenty twenty three, So
their self sufficiency, this is the key number, Andrew and
Darry has grown from seventy percent to eighty five percent
in the past four years. You know, with these low
farm gate prices, China will quickly become a major exporter
of darying around the world and that could cause us
some issues, perhaps not even to mention the market that
(03:07):
where that is being flooded with some of their products.
Speaker 2 (03:10):
And this also remind them that nearly will mind ourselves.
At sixty percent of the New Zealand and formulam exports
go to China, but if they start being self sufficient,
then we lose money here.
Speaker 3 (03:21):
And a final thought on that one, Andrew, just following
on from your excellent number, is that we do have
an FTA with China and that helps us because the
other big players in the infant formula market are getting
hit harder than us, the likes of the Netherland. So
thank goodness for that FTA with China.
Speaker 2 (03:37):
Good So if Jamie go the Rowers and I thank
you for your time today or the best Buddy
Speaker 1 (03:41):
Sea for more from Hither Duplessy Allen Drive, listen live
to news talks it'd be from four pm weekdays, or
follow the podcast on iHeartRadio
Your ruerboard on the Evin du Per se Eland Drive
with n's Kofoods, New Zealand's Finest Beef and Lamb.
Speaker 2 (00:08):
Now to talk rural, we've got Jamie McKay, host of
the Country and from the Country dot Co dot NZ.
Hello Jamie good Andrew.
Speaker 3 (00:16):
Hey, look, I'm wondering whether maybe someone should Dr Rod Carr,
the Climate Change Commissioner or the chairman and tell him
not to venture into rural New Zealand because he's ruffled
a few feathers today.
Speaker 2 (00:28):
All right, so this is so you actually broke out,
broke down a little bit there. So this is kind
of Change Commission Chair Dr Rod Carr, who says it
is not true to say pharmacy to wait for new
technology before they can lower their planet heating commissions. They
can do it now.
Speaker 3 (00:43):
Here. Well, it's interesting, he said. The idea that and
I hope you can hear me Andrew apologize for the reception.
He said, the idea that farmers have no tools and
must wait for new things before they can reduce emissions
is simply not true. We know different feeding practices are
associated with different missions. We know different breeds and breed
with breeds within breeds are associated with different emissions. Now,
(01:07):
this got a strong rebuke from Mark Cameron, who's one
of the act agricultural spokespeople. He's also a Northland Kalkaki.
He said, well, mister Carr, it's about time you visited
rural New Zealand before making in accurate statements about on
farm practice. Has a thought for URRT, He writes, the
Climate Change Commissioner should tell rural people what bovine breeds
(01:30):
and what breeds within breeds. He's specifically talking about that
he states had such different emissions profiles New Rural and
New Zealand is waiting with baited breath for the answer
to that one.
Speaker 1 (01:41):
Yeah.
Speaker 3 (01:41):
So look he's going out all guns blazing, doctor Rhard.
He's never been afraid to speak out. It'll be fair
to say he's probably not the post popular man in
the rural New Zealand.
Speaker 2 (01:51):
Good seth, Look this is starting to worry me. Development
of large scale dairy farms and forming feed prices are
driving China's raw milk action app and the official price down.
They're getting good at this stuff.
Speaker 3 (02:03):
Yeah, they are getting really good at it. And I've
been trading for a lot longer than us and it's
a bit of a worry if they start moving some
of their production Andrew onto the world stage. Interestingly, that
the current price they're being paid in China at the
moment in New Zealand dollar equivalents about nine dollars per
kilogram of milk solid, so it's still above ours. But
their cost of production is quite a bit higher than ours,
(02:25):
obviously because it's all it's mainly bought in feed, whereas
our dairy system is pasture based. So China's raw milk
production's gone up one percent in May year on year,
two point three percent growth in April, and we're looking
at possibly because we're not sure of these numbers coming
out of China eight point six percent per annum twenty
(02:45):
twenty two are two point nine twenty twenty three, So
their self sufficiency, this is the key number, Andrew and
Darry has grown from seventy percent to eighty five percent
in the past four years. You know, with these low
farm gate prices, China will quickly become a major exporter
of darying around the world and that could cause us
some issues, perhaps not even to mention the market that
(03:07):
where that is being flooded with some of their products.
Speaker 2 (03:10):
And this also remind them that nearly will mind ourselves.
At sixty percent of the New Zealand and formulam exports
go to China, but if they start being self sufficient,
then we lose money here.
Speaker 3 (03:21):
And a final thought on that one, Andrew, just following
on from your excellent number, is that we do have
an FTA with China and that helps us because the
other big players in the infant formula market are getting
hit harder than us, the likes of the Netherland. So
thank goodness for that FTA with China.
Speaker 2 (03:37):
Good So if Jamie go the Rowers and I thank
you for your time today or the best Buddy
Speaker 1 (03:41):
Sea for more from Hither Duplessy Allen Drive, listen live
to news talks it'd be from four pm weekdays, or
follow the podcast on iHeartRadio
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