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.

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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 development marks a significant step in unifying and strengthening grassroots environmental efforts across New Zealand's rural landscape. As the ANZCC begins its work, it's expected to play a crucial role in shaping environmental policies and practices that affect the country's waterways and rural communities.

Industry collaboration aims to cut quad bike fatalities on farms

A new initiative called Safer Rides is encouraging New Zealand farmers to install crush protection devices (CPDs) on their quad bikes. This move comes in response to 22 quad bike-related fatalities between 2019 and 2023, mostly involving rollovers on steep terrain.

Safer Farms, along with industry partners including Rabobank and ANZCO Foods, have joined forces to offer discounts of up to 75% on CPDs. These devices create survival space under an upturned quad bike, potentially saving lives during accidents.

Wairarapa farmer Lindy Nelson, a Farm Without Harm ambassador, emphasised the urgency of addressing farm fatalities. She says quad bikes can be great workhorses for farmers, so making existing ones safer is crucial.

The program aims to make safety more accessible during financially challenging times for farmers. 

Farmers can apply for vouchers worth $400 towards the purchase of a CPD, covering almost half the retail price. Participating retailers are offering an additional 15% discount. Four CPD products are available under the program, starting from $635.

This initiative is part of Safer Farms' broader Farm Without Harm strategy, which takes a whole-of-sector approach to designing preventable harm out of New Zealand's farming systems.

This collaborative effort represents a significant step towards reducing quad bike-related accidents and fatalities on farms across the country.

AgResearch chair celebrated for contributions to primary industries

AgResearch is marking the end of an era as Board Chair Paul Reynolds steps down after nine years of service. Reynolds is being hailed as a tireless advocate for research and New Zealand's primary industries.

Chief Executive Sue Bidrose praised Reynolds' leadership, noting his success in guiding AgResearch through challenging times and significant changes. She highlighted his deep understanding of the research and primary sectors, and his efforts to ensure high-quality research remained at the forefront of the organisation's activities.

Under Reynolds' leadership, AgResearch modernised its facilities, including the delivery of the new Tuhiraki facility at Lincoln. He also steered the organisation through various science sector reviews and helped evolve organisational strategies to meet changing needs.

Reynolds served on the AgResearch Board for nine years, with five as Chair. Kim Wallace has taken over as acting Board chair.

In other changes, Hone McGregor and Andrew Morrison join the AgResearch Board this month. McGregor brings experience from several boards, including chairing the Our Land and Water National Science Challenge Governance Group. Morrison is the former chairman of Beef + Lamb New Zealand.

These appointments coincide with the departure of Board members Jackie Lloyd and Rukumoana Schaafhausen, both recognized for their significant contributions to AgResearch.