NZ Milk Price

[Dead Rabbits]

Going by the recent announcement from fonterra it looks like it will be a good year to milk cows in kiwi land. What effect will this have on world prices do you think?

Either way it will be a good year to be share milking or contract milking over there.

@FonterraFarmer might even be able to afford a new toyota

 

[sidjon]

You mean this , all the Fendt are being exported as we speak

 

[Dead Rabbits]

I think $8nz/kgms comes to roughly 33p/l? If I converted that all correctly. These are not forms of measurement or currencies I deal with regular

 

[Will Blackburn]

In the UK we have contracts with pricing agreed about 2 months ahead, so quite reactive to price changes. How did we get to a point where the UK premium liquid market is discounted to world prices by 25%?

 

[Beef farmer]

Going by the recent announcement from fonterra it looks like it will be a good year to milk cows in kiwi land. What effect will this have on world prices do you think?

Either way it will be a good year to be share milking or contract milking over there.

@FonterraFarmer might even be able to afford a new toyota

And your milk price currently?

 

[Dead Rabbits]

And your milk price currently?

I was chatting to one of yous on Snapchat a few weeks ago and we would be around 30-33p/l. For March. All trends pointing to a general rise by year’s end

 

[Beef farmer]

I was chatting to one of yous on Snapchat a few weeks ago and we would be around 30-33p/l. For March. All trends pointing to a general rise by year’s end

Thought you said it was a lot more.... must have got £/$ confused

 

[kiwi pom]

You mean this , all the Fendt are being exported as we speak
View attachment 963542

It's only a forecast mind. It could end up a lot lower than that.
Not sure how it works but I think there's part payments each month and a top up at the end of the year when they decide what the price should have been.
Just coming to the end of the 20/21 season, don't know if the final price has been decided yet?
@FonterraFarmer ?
Fonterra is only one processor too, there are a lot of others now, processing a lot more milk than people realise.

 

[Dead Rabbits]

It's only a forecast mind. It could end up a lot lower than that.
Not sure how it works but I think there's part payments each month and a top up at the end of the year when they decide what the price should have been.
Just coming to the end of the 20/21 season, don't know if the final price has been decided yet?
@FonterraFarmer ?
Fonterra is only one processor too, there are a lot of others now, processing a lot more milk than people realise.

True enough but Fonterra handle about 1/3 of the worlds dairy exports so it’s something to watch.

 

[Irish NZ]

It's only a forecast mind. It could end up a lot lower than that.
Not sure how it works but I think there's part payments each month and a top up at the end of the year when they decide what the price should have been.
Just coming to the end of the 20/21 season, don't know if the final price has been decided yet?
@FonterraFarmer ?
Fonterra is only one processor too, there are a lot of others now, processing a lot more milk than people realise.

85% of nz milk is processed by fonterra. The fonterra milk price is the benchmark for the other companies. Plus the tide is turning with regards to people coming back to fonterra. I know of 2 other processes starting to struggle as a knock on effect of covid.

 

[kiwi pom]

85% of nz milk is processed by fonterra. The fonterra milk price is the benchmark for the other companies. Plus the tide is turning with regards to people coming back to fonterra. I know of 2 other processes starting to struggle as a knock on effect of covid.

I'd be willing to bet that that isn't true.
85% of the farms, maybe, There's a lot of small Fonterra suppliers, particularly up north, but 85% of the milk, I don't think so.
Happy to be proved wrong, but I doubt the likes of Talley's and Synlait disclose how many litres they process?

 

[Irish NZ]

I'd be willing to bet that that isn't true.
85% of the farms, maybe, There's a lot of small Fonterra suppliers, particularly up north, but 85% of the milk, I don't think so.
Happy to be proved wrong, but I doubt the likes of Talley's and Synlait disclose how many litres they process?

Under Dira regulations they do disclose their collections data. This isn't the uk. I'm the federated farmers dairy chair for my area with covers all suppliers.... how much were you betting again?

 

[Beef farmer]

A speights. Or is it Tui?

 

[kiwi pom]

Under Dira regulations they do disclose their collections data. This isn't the uk. I'm the federated farmers dairy chair for my area with covers all suppliers.... how much were you betting again?

Talley's, Oceania, Synlait etc, all disclose their daily litres?
I'd be shocked if Fonterra had 85% of the milk. What's Fonterra's yearly peak these days? They seem to be losing sheds round here, whilst the competition add factories and tankers.

 

[Irish NZ]

Talley's, Oceania, Synlait etc, all disclose their daily litres?
I'd be shocked if Fonterra had 85% of the milk. What's Fonterra's yearly peak these days? They seem to be losing sheds round here, whilst the competition add factories and tankers.

Every kg of milk solids produced in nz incurs a levy paid to dairy nz regardless of supplier. So yes they all disclose. They are all part of DCANZ also and all subject the the dira regulations so yes they all disclose their collection data.

 

[kiwi pom]

Every kg of milk solids produced in nz incurs a levy paid to dairy nz regardless of supplier. So yes they all disclose. They are all part of DCANZ also and all subject the the dira regulations so yes they all disclose their collection data.

Fair enough, you'll have access to more numbers than me. A quick internet search suggests they sit around 81% of milk with competition increasing, particularly Open Country.
Just driving round the south island you'll see more and more rival tankers and farm gate signs each year, with factories expanding.
I hope their share doesn't keep slipping, I wonder what will happen if it gets to the stage the privates can set milk price and not Fonterra.

 

[Wooly]

A speights. Or is it Tui?

Might be better to drink the milk than those two beers !!

 

[Farmer Keith]

Might be better to drink the milk than those two beers !!

said no man ever...

 

[Wooly]

said no man ever...

You haven't drunk NZ beer then !!

 

[Farmer Keith]

You haven't drunk NZ beer then !!

Quite enjoyed a Speight’s when I was down there, a beer is a beer!