NEW ZEALAND - Anecdotal reports of “heavy culling” on New Zealand dairy farms are fuelling expectations of lower production for the coming season.
A contraction in milk collections is expected by dairy giant Fonterra of 2-3 per cent, caveated to possibly fall by more, setting the tone for the industry as it heads into its flush period. read more
Lower farmgate prices, the equivalent of 12 pence per litre down on last year, have been the starter’s gun for some analysts predicting a fall of 10 per cent, said levy board Dairy Australia in its fortnightly report.
A spokesperson said “deteriorating expectations” for the New Zealand 2015/16 season are offering “some hope” of market fundamentals improving.
Is Cow Slaughter Increasing?
New Zealand Meat Board figures reveal weekly cow slaughter in late August over 100 per cent higher year on year.
South Island cow slaughter was 259.9 per cent higher for the week ending 15 August.
This has supported gains in beef production ahead of the pace of prime slaughter.
Total cattle slaughter has been running well ahead of last year’s monthly figures, with Beef and Lamb New Zealand forecasting the trend to run into August and September.