It has been a bumper year for kiwifruit, with export values up 20% to $3.1 billion in the year ended August 2024, according to figures released by Stats NZ today.

That’s an increase of $524 million when compared with the year ended August 2023.

“Kiwifruit export values for the season so far are the highest they have ever been,” Stats NZ international trade manager Viki Ward said.

The kiwifruit export season is typically from March to November. Gold kiwifruit exports were $2.4bn, up $45m (24%) from the year ended August 2023. This increase was driven by an increase in quantity (up 23%).

Green kiwifruit exports were $737m, up $67m (9.9%) over the same period. The increase in green kiwifruit export values was driven by an increase in price (up 9%).

“Growers in New Zealand are increasingly planting gold, and now red, kiwifruit, to capture greater export value in markets like China and Japan,” Ward said.

The top destination for gold kiwifruit is China, while the top destination for green is the European Union.

The simple supply and demand curve ruled the fortnightly auction in Napier this week with sellers emerging as the grinners. 

PGW North Island procurement and sales manager Steve Fussell said the number of bales offered this sale was around 40% under the rostered amount planned.

“With a full bench of buyers, the sale ended most certainly in sellers’ favour as longer wool types held the most demand, with second-shear wool facing strong bidding throughout the sale,” Fussell said. 

Crossbred fleece lifted 4% with good style selling at $3.55/kg (clean), average style $3.40 and poorer $3.17 while second-shear ranged in price from good style longer length at $3.38 down to shorter average style at $3.17.  

Looking across the board, PGW general manager wool Rachel Shearer said the wool market has seen mixed results see-sawing across both islands of recent weeks with some auctions favouring sellers and others tipping in buyers’ favour. 

Highlights include fierce competition for specialty wools and a buzz around fine wool in Christchurch, thanks to international interest.

The latest trends from the wool auction have generally seen specialty wool types sparking intense bidding, with strong demand driving prices higher.

In the South Island, the recent Christchurch sale marked the first of the weighted fine wool offerings for the season. 

One of the main Australian wool exporters entered the fray, adding extra competition and a noticeable buying buzz to the room.

“The result was an upbeat atmosphere and almost a full clearance of lots in the sellers’ favour. 

“Some Merino growers, seated in the room, watched as their wool went under the hammer, generally seeing positive results.”

However, crossbred wool offerings in the south continued to favour the buyers, similar to trends seen in the North Island throughout August. 

A limited supply of this type of wool kept the market steady, but it remains to be seen whether pricing will improve as the season progresses, Shearer said.

One surprising trend across both islands has been the stronger-than-expected prices for lower-quality wools, both fleece and oddment types. 

India has been particularly active in this market, although the rising New Zealand dollar appears to be creating a bit of a standoff with demand from India beginning to taper off. 

The Chinese market has also been chasing these lower-grade wools, which has helped elevate prices to date. 

“With fewer crossbreds expected on the market over the next few months, the dynamics may remain steady, but whether this translates into better pricing for the entire season is still unclear,” Shearer said.

In Focus Podcast | Sheep outlook: the future of our flock

Sheep farmers are doing it tough right now, with farmgate returns dropping back after a few good years and input costs rising. Add to that the march of pine trees across the land, and there’s talk of an existential crisis. Bryan asked AgriHQ senior analyst Mel Croad to give him the lay of the land and asked her what the sector needed to do to find prosperity again.

Young Britons don’t eat Sunday lamb roasts like their parents do, and Alliance Group is finding ways to connect to that younger generation.

Those young people do, however, eat koftas, pies and nibbles. They go to pubs, football games, concerts, a percentage enjoy white-tablecloth fine dining and they buy food online.

Alliance Group’s UK and Europe manager Helen Scott said retail remains an extremely important market for lamb, but consumer trends are shifting and exporters like Alliance have to adapt, which it is trying to do by adding value.

“Retail is very important to us as it is to all red meat companies, but we are also looking to create value by targeting food service, hospitality and online sales.”

Alliance has employed Matt Owens as head of culinary, and it is his job to create new products from Alliance’s Pure South, Lumina lamb and Handpicked aged beef ranges and to also work with chefs, hospitality and food service outlets.

This involves finding flavours for pie fillings, burgers and koftas and, potentially, creating new lamb or beef dishes, such as in tortellini pasta, dim sims, pizza topping or lamb and prawns in an Asian broth.

“I’m lucky I know a lot of people who have a lot of ideas and we are close to London City and some of the best restaurants in the world,” said Owens.

Scott said this new product focus and Owens’s culinary skills contributed to Alliance supplying meat and meat products to the New Zealand team and supporters at the Birmingham Commonwealth Games and at NZ House during the recent Paris Olympics.

Alliance lamb and beef products are also supplied to corporate fans at Premier League football side Tottenham Hotspur’s newly owned 62,000-seat Tottenham Hotspur Stadium.

A typical game will see 8000 burgers and 6000 koftas eaten.

Scott said the stadium is also hosting an American Football League match and a concert by Beyoncé at which Alliance products will be sold.

The company that runs hospitality at Tottenham operates a further five stadiums that now serve Alliance products.

Scott said the new range also features on menus, from pubs to high-end hotels in the UK, Europe and the Gulf States, where it is served alongside beverages, room service and at conferences.

Scott said Alliance is also targeting high-end restaurants with its Lumina lamb, which is now on the menus of Michelin star-rated restaurants in the UK and Dubai.

These are small but important steps that Alliance needs to take.

“This is the future for NZ farmers, creating value,” she said.

“We are a sheep, beef and venison red meat co-operative and we’re proud of it, but we are also a culinary food supplier and that is how we are attracting younger consumers.”

Scott said Owens’s extensive contact network from a career work in the culinary industry and as a former chair of the 139-year-old Craft Guild of Chefs, has been crucial in getting a foot in the door of potential clients, but also getting them to try new or existing products.

A commercial kitchen has been built at Alliance’s appropriately named Shepherdess Walk  offices in central London, at which Owens can experiment with products, network with other chefs or brainstorm new ideas, and where the company can host potential customers.

Once a product has been developed it still needs to satisfy commercial and market criteria.

For example, the super yacht industry is a new potential market but will have to satisfy logistic as well as financial criteria.

“We’re very specific – we have to be – and that means we won’t be seen everywhere,” said Scott.

Nearly a third of UK transactions are conducted online and Scott said its Silere lamb range is resonating with young consumers and has an exceptionally high five-star satisfaction rating lodged by customers.

She said consumers relish the story behind Silere lamb, which is told in online marketing.

“It’s the high-spend consumer that is buying Silere. It targets a new consumer.”

The NZ-UK free trade agreement has opened access for NZ beef. Scott said products have been successfully received, in part due to NZ’s existing reputation for lamb but also due to its quality.

The first shipment sold out within a week, she said, with Alliance’s hand-picked, aged product proving especially popular.

Scott acknowledges NZ sheep farmers are having a tough time but has some encouraging words.

“We are very optimistic with lamb and beef here in the UK. Protein consumption is high and it is growing.”

More: Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.  Read more about his findings here. 

Returns for ewes with lambs-at-foot have certainly improved since last year but a weak mutton price may be the difference in prices not rebounding back to 2022 levels. 

There are still many places across the country in the thick of lambing. For the North Island regions that are through it now, reports of survival have been mostly positive and demand for the first early-borns to hit the market has been surprisingly good.  

The chaotic neutral weather pattern that has dominated through winter and now spring has turned out to be rather favorable for most new-season lambs. The right balance of just enough sun on backs and well-timed rain has meant many regions with a lot of light lambs on the ground are better set-up for growth. 

As the lambing season continues, the combination of increased multiples, good survival rates, and hungry lambs has meant there has been an early uptick of ewes with lambs-at-foot trading in the paddock. This has eased prices $10 or so in the past fortnight to around $90-$100. 

It could be expected that the market will continue to be tested as the season progresses. Despite this, a finished lamb price on the rise has contributed to a more positive outlook for traders. There are many regular buyers who are also reporting better confidence in feed and faster growth rates, driving demand for ewes and lambs out of the hole they were stuck in last year.

Tightening feed budgets have also increased the volume of ewes with lambs-at-foot in the saleyards, where farmers are seizing the opportunity to lighten the load, supported by firmer returns. 

Last year, supply at Stortford Lodge didn’t build until September 13, and even then demand was soft as the only pens not passed in fetched $60-$85 all counted. This year’s first sale featuring 200 ewes and lambs took place on August 21 when the better pens with older lambs fetched $101 to $107 all counted, while those with lighter-condition ewes or smaller lambs sold for $81 to $95.

At Feilding on September 13, 286 ewes and lambs were yarded. Better pens fetched $101-$116 all counted while the rest traded at $81-$97. The following week at Stortford Lodge, there was a clear preference for a larger docked lamb as pens that fitted the bill fetched $103-$108 while pens of smaller lambs made $80-$90. 

Overall in the yards this year, ewes with lambs-at-foot at Stortford Lodge and Feilding are averaging $90 and $88 respectively, an improvement from last year when averages were $69 and $65. However, still less than previous years as, from 2018 through to 2022, averages were in the range of $96-$123. 

This will most likely be related to the dynamic of the current mutton price. The five-year average mutton price for the month of September is $5.29/kg. Mutton schedules are currently operating near an average of $3.50/kg, the highest it has been all year. However, this is an improvement on this time last year when the mutton price was declining to around $3.30/kg. Almost all New Zealand mutton is exported to China, which is currently showing weak demand for most imported commodities including red meat. 

More: This article was written by AgriHQ analyst Alex Coddington. Subscribe to AgriHQ reports here.

In Focus Podcast | Sheep outlook: the future of our flock

Sheep farmers are doing it tough right now, with farmgate returns dropping back after a few good years and input costs rising. Add to that the march of pine trees across the land, and there’s talk of an existential crisis. Bryan asked AgriHQ senior analyst Mel Croad to give him the lay of the land and asked her what the sector needed to do to find prosperity again.

Angus yearling bulls sold readily during the first half of September and the spring bull sale season.

Stokman Angus in Waikite Valley, Central Plateau, made a top price of $30,000 for Stokman U295, bought by McFadzean Cattle Company in Wairarapa.

McFadzean also paid $15,000 for a Stokman bull, as did Taimate Angus, Marlborough.

Despite some access worries with highway repairs, Stokman had a complete clearance of 114 yearling bulls with an average price of $5337 and also sold 40 heifers in the price rage $1650 to $2100. 

Kayjay Angus, Masterton, made a top price of $24,500 for Kayjay Mountain Man U758, paid by Shian Angus, Taumarunui.

Kayjay Mountain Man U722 sold to Turiroa Angus for $15,000.

Stud principal Rod Kjestrup said these are the first two sons sold at auction from $92,500 sire Meadowslea Mountain Man 705, born in 2020 and bought in 2022 for a season record price.

Kayjay sold 17 out of 17 in the catalogue and averaged $8541, more than twice that of last year.

McFadzean Cattle Company sold its Meatmaker and Super Angus yearling bulls to a top price of $16,000, paid by long-time supporters Luce and George Williams, Grassendale Genetics, Masterton.

A total of 28 bulls sold from 31 offered in the two composite breeds made an average price of $7313, well in advance of last year’s $4220.

McFadzean’s Cruizy Calves bulls sold 75 out of 79 offered with an average of $3820.

At the top price of $11,000, lot 36 sold to Patrick and Micheal Beech, Bullock Hills Station and lot 50 drew the same price from Logan Evans, Mount Peel Station, both returning purchasers.

Turihaua Angus, Gisborne, sold all 25 yearling bulls for an average $7908 and all went to commercial farms, including $10,500 made twice.

Waitangi Angus, Bay of Islands, sold 64 out of 89 and averaged $4050, with a top of $9500 paid by Waitangi Terraces, Gisborne.

There were also three transfers to Hingaia Angus, Gisborne.

Mahuta Herefords, Tuakau, had a full clearance of 64 bulls and a top price of $11,000 paid by Otapawa Herefords.

The average for the sale was $3803.

Kairaumati Herefords, Turua, sold 29 two-year bulls averaging $3517 and 19 yearlings averaging $2800.

In Taranaki service bulls sold quickly and regional livestock manager Steve Quinnell reported the prices for NZ Farmers Livestock.

Tawanui sold 70 two-year Herefords averaging $3460 and 40 two-year Angus bulls averaging $2860

Penny Lane sold 100 Hereford two-year-old averaging $2950, 20 Angus averaging $2930 and 100 Jersey bulls averaging $2525.

Burmeister sold 60 high BW Jersey yearling bulls averaging $1900.

Shadow Downs Herefords sold 12 yearling bulls and 48 two-year bulls averaging $3210 with a top of $6200.

Puketahi sold 30 two-year Herefords averaging $3360, 20 two-year Angus averaging $2860, 10 two- and three-year Murray Greys averaging $2700 and 50 two-year Jerseys averaging $2360.

Megaw sold 30 two-year Herefords averaging $2950, 25 two-year Angus averaging $2500, 20 two-year Friesians averaging $2300, 25 two-year Ayrshires averaging $2230, 170 two-year Jerseys averaging $2350 and 15 18-month-olds averaging $1950.

FoodWaikato’s spray dryer is about to undergo a $7 million upgrade as it eyes expanding its colostrum collection and processing capabilities.

The company, located at the Waikato Innovation Park in Ruakura, is in the middle of colostrum collection as dairy farms across the country calve their cows.

The plant upgrade will allow the colostrum to be “taken to bits”, Food Waikato chief executive Trevor Lock said.

The best “highly bioactive” parts of the colostrum will be processed into food supplements for gut health by plant owner, South Auckland-based New Image Group, and the rest used to create other products starting in 2025.

“We’re moving from dietary supplements – formulated products which we are making right now – to true nutraceuticals, where we are making soft claims.”

A research programme is in place to support those claims and $4.5m is being spent on research and development over the next few years.

Lock said they are looking for more farmers with the aim of having 100 farmers supplying the dryer with colostrum by next year.

They are also investigating the viability of collecting from farms that autumn or split calving.

Colostrum is the first secretion from a cow’s udder after giving birth and farmers are not permitted to put it into the milk supply until eight milkings have been completed – which is usually around four days.

Apart from Westland Milk and New Image, no other major dairy company collects colostrum. It is costly and its small volume makes it difficult to process in the large dryers most modern dairy companies use, Lock said.

“It’s very difficult to make. It’s difficult to collect and it’s difficult to manufacture.”

In their first run using the dryer, they processed the colostrum and tested its viscosity before drying it and it came out at 700 centipoise.

“It was like a thick paste. It’s very sticky, it’s very difficult.”

By comparison, regular cow’s milk has a viscosity reading of 20 centipoise, he said.

The flipside is there is enormous market demand for colostrum-based nutraceuticals. This is because the main global exporter, the United States, stopped exporting the product.

“Outside the US, New Image would be the largest colostrum user in the world,” he said.

The company exports its product to 26 countries, turning colostrum into a powdered drink for both adults and children to promote gut health.

The demand along with the factory upgrade has enabled Lock to hire four more staff. 

The expansion means the company is now operating 24 hours a day, seven days a week. 

The factory currently has a single dryer that can produce 500kg an hour and operates on four shifts with two people working on each shift.

When it processes nutritional formulas, it processes around 400kg an hour.

It also has a “wet side” operation that makes up all the ingredients for the nutritional formulas. That crew has two people and is about to double. Next year, he hopes to add two more as the operation moves to 24/7 too.

The company has a chequered history, having been put into liquidation last year before being purchased by South Auckland-based company New Image Group (NIG) in December. Lock has 25 years of experience in the colostrum market, having worked on developing the process to develop colostrum. 

Lock also has a fraud conviction and spent time in prison, which he is open about, saying he “did his time”.

Last year the company collected from four farms in South Waikato and this has expanded to more farms for this calving. Lock contracted the spray dryer at the Innovation Park on behalf of New Image to manufacture the colostrum, making 2 tonnes for the market.

Lock then put a business case to New Image to buy the plant and employ Lock to run it.

The colostrum collection does not interfere with the farmer’s relationship with the milk supplier, nor does it prevent the calf from getting all the colostrum it needs. 

The payment for the colostrum is based on the product’s immunoglobulin G (IgG) levels measured from three milkings done while the cow is producing colostrum.

The higher the IgG, the higher the payment. At the top end, the company pays $3.35/ litre for a 25-28 IgG level per litre and this is usually measured during the cow’s first and second milking. At the bottom end, it pays $1.35/L when the IgG is at 10-12/L.

The average payment would be $2.25/L from around 18L of colostrum from the first 36 hours since calving.

“If a farmer has 600 cows and they earn $2.25 a litre, it’s worth around $43.20 per cow for six weeks’ work.”

It adds up to around $25,920.

“We have one farmer in Southland who will earn in excess of $100,000,” he said.

“It’s good for the New Zealand farmer.”

On farms outside the tanker pickup area, the colostrum is bagged and frozen while it waits for collection for transport back to the dryer.

During the times of the year when cows are not producing colostrum, the major dairy companies use the dryer to test and trial new products and make specialised nutritional products.

Once the upgrade is completed, Lock also plans to process milk for specialised ingredient  products for NIG.

The dryer is also collecting and processing goat’s milk products via NIG, providing income for those cash-strapped farmers and supply security for them.

It also provided a lifeline earlier in the year for sheep-milking company Maui Milk, agreeing to process and sell the milk for 11 of its suppliers.

“Where this plant was going into liquidation into December, we have turned it around completely into a significant profit-making entity, hired more staff – the lights are staying on.”

Dairy will continue to play a crucial role for food giant Nestlé, but the company wants to see a reduction in on-farm emissions by 2030.

Florence Henry, Nestlé’s global head of sustainability for nutrition, said given the need for nutritious food to feed a growing population, dairy will continue to play a crucial role, but she wants farmers to continue making progress improving their sustainability.

The market is telling them the future is low-carbon milk.

“We have a big responsibility to feed a growing population,” she told Farmers Weekly.

The three sustainability priorities for all its suppliers are improved productivity, climate and regenerative agriculture.

For farmers, regenerative agriculture means sustainably managing or restoring soil and water and biodiversity quality.

Henry said in a video conference that she accepts New Zealand farmers work with and care for nature, saying that is part of their DNA.

But sustainability makes sound business sense and Nestlé is reflecting what its consumers are telling them and what is increasingly becoming a requirement of government regulators such as the European Union.

“Consumers want to hear stories about where their food comes from, how it is made, how natural it is and how respectful it is of nature, the environment and animal welfare.

“The more you tell the story the more it resonates with and connects to consumers.”

Last month, Speaking via Zoom from Switzerland at the New Zealand Institute of Primary Industry Management conference at Mystery Creek, Nestlé global procurement category lead for dairy Bruno Spire challenged the claim that New Zealand dairy farms have the lowest global carbon footprint.

He said “New Zealand has low emissions but not the lowest.”

Dairy accounts for about 21% of the company’s Scope 3 greenhouse gas emissions and is Nestlé’s largest single source.

Methane is responsible for 40% of total emissions from its dairy operations.

Nestlé wants to see farmers making continuous improvement on sustainability issues and it is prepared to help.

“We’re on the side of farmers,” Henry said.

She said farmers are at the centre of its sustainability efforts as they manage resources and make decisions on practices that suit their individual circumstances.

NZ dairy farmers cannot afford to relax, even though “you are starting from a very strong base if you consider emissions at a farm level”.

She said the NZ dairy industry is well aware of the need to continue improving.

“There is a lot of very positive forces such as DairyNZ and Fonterra co-operative embracing the agenda and really wanting to advance.

“NZ is well positioned but there needs to be continuous improvement.”

According to its 2023 annual report, Nestlé is more than halfway to achieving its 2025 goal of reducing absolute greenhouse gas emissions and well on the way to its 2030 goal of 50% reductions.

About 80% of those reductions are being achieved by changes in the way it sources raw materials, such as investment in deforestation prevention and regenerative agriculture.

Dairy is Nestlé’s single largest raw material, sourced from 200,000 dairy farmers in 27 countries. With such a diverse supply base, Henry said, farmers in different countries have different levers to pull.

Farmers are not on their own, with Nestlé offering incentives to help farmers transition, helping them adjust and investing in research.

Nestlé has its own dairy climate plan but is also part of the Dairy Methane Action Alliance, an international industry body charged with tackling the issue.

Through its action plan, Nestlé is working with Fonterra suppliers on projects such as planting native trees on marginal farmland for carbon capture, reducing on-farm greenhouse emissions through nutrient and fertiliser management, and demonstrating approaches to achieve net zero emissions while retaining farm profitability.

Similarly, it is partnering with Synlait in a seven-year programme.

This includes wastewater management systems, low-carbon emissions feed options, advanced soil testing, alternative fertilisers and tree planting.

The Nestlé Institute of Agricultural Sciences is researching dairy emission reduction techniques including methane-reducing feed supplements, manure management and improved diets.

In 2023 Nestlé developed and implemented a new approach to collect dairy emissions data and measure impacts in markets around the world so it can help suppliers adopt new ways to reduce emissions.

Nestlé has also established a dedicated team to work with its largest dairy derivatives suppliers with work focused on improving diets to reduce dairy emissions.

Nestlé last year had NZ$179 billion in sales, which included milk products and ice cream contributing $21bn, confectionery $15bn, powder and liquid beverages $24.8bn and nutrition and health science $29.4bn.

According to its annual report, Nestlé sells into 188 countries, with more than half its sales in Europe and North America. It employs 270,000 people.

More: Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.  Read more about his findings here.

Dairy commodity prices drove the Global Dairy Trade index up 0.8% at last night’s auction.

Every category except milk fat products lifted with whole milk powder up 1.5% and skim milk powder up 2.2%.

Eighty-nine percent of the total 43,497t available was sold.

The rise in SMP prices, to US$2809/t, takes them to their highest average price on the platform in the past 12 months. 

NZX dairy analyst Rosalind Crickett said in a note that factoring market sentiment, the increased demand for both milk powders at GDT 364 is not surprising – given the off-peak of milk production in the northern hemisphere combined with factors such as the bluetongue virus, which has been increasing in prominence in both the United Kingdom and Europe.

Looking at milk fats, AMF eased 1.2% overnight to settle at US$7220/t – its first change of direction after four consecutive increases at GDT Events since July. Butter also softened 1.7% to reach an average price of US$6546/t.

Among other products, cheddar rose 2.9% to reach its second highest price in the last 12 months of US$4441/t. 

Mozzarella continues to know no limits, seeing further 4.5% increase in prices to US$5351/t. Lactose also saw a 3.5% increase this time, after a heavy decline at GDT 363, settling at US$896/t.

North Asia maintained its top purchasing spot for both milk powders and butter at GDT 364 – accounting for 51% of the total product volumes. Southeast Asia/Oceania was the top buyer of AMF, while Africa was for cheddar.

Food companies and retailers will need closer, more trusting relationships with their suppliers to comply with growing requirements to report their sustainability performance.

Regulators such as the European Union require companies to report progress on reducing greenhouse gas emissions and the environmental impact from within their supply chains, but companies also have their own sustainability targets.

Lee Ann Jackson, the head of the agro-food trade and markets division in the OECD’s Trade and Agriculture Directorate, said many companies have public targets against which customers and consumers can measure their performance.

Complying with those reporting requirements will require more intimate relationships between supplier, processor and retailer than a purely traditional commercial arrangement.

“It feels like more of a partnership is being created rather than a pure commercial relationship,” Jackson said.

That form of information sharing requires trust, regular interaction and an understanding about how data is collated and progress reported against sustainability goals and expectations.

Jackson said this raises the challenge of creating consistent measuring and reporting systems for the various metrics.

This is happening as government support for farmers shifts from producing food at all costs to policies that encourage environmental sustainability and ethical production.

Increasingly food systems and world trade will reflect what she called public-good public policy, policies that incorporate issues such as greenhouse gas emissions, biodiversity, deforestation and animal welfare.

“There are a lot of things related to production that businesses are being asked to or are voluntarily moving in a certain direction.

“They are finding ways in the supply chain to keep an eye on those things the market has not priced in.”

Jackson said food producers have multiple objectives and she believes they can achieve what is being asked of them, but it will require policy makers to co-operate and to stop working in silos.

This is happening, evident by the tone at recent climate change events.

“The priority maybe net zero [carbon emissions] but now the conversation is trying to bring farming in more.”

After 10 to 20 years of sustained growth, trade in agriculture has started to slow.

“It’s still growing but it is slowing down, partly driven by fundamentals such a population growth and where that increase is occurring, but also it could be a policy decision to do with the supply chain and companies seeking trusted trading partners.”

An example of the change is the shift in the language being used in public forums, with reference to resilient supply chains instead of resilient agricultural production, especially since the covid pandemic and the Russian-Ukraine war.

Jackson said the OECD considers private enterprise the best vehicle to manage supply chain risk instead of government intervention.

“We believe the private sector is the best way to manage risk, especially in agriculture and its variables, because that is a big part their game and the private sector is able to hedge bets and establish the relationships needed.” 

New Zealand is a world leader in trade policy.

Prior to working with the OECD, Jackson spent 15 years with the World Trade Organisation and for 10 of those years a New Zealander headed the agricultural trade negotiations.

“NZ has credibility, you think about how trade would work.”

More: Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.  Read more about his findings here.

Dairy farmers looking for insights to Global Dairy Trade prices and their effect on milk price forecasts are being offered a new report by those in the know and with figures at their fingertips.

It is the SGX-NZX Dairy Derivatives Pre-GDT Digest, published bi-monthly about 24 hours before each crucial GDT event.

The report provides a comprehensive analysis of key market elements with the aim of helping readers make informed decisions in the trade of milk and dairy derivatives, futures and options.

The Pre-GDT Digest covers futures prices, cross-commodity exchanges from SGX-NZX, EEX, and CME, along with a detailed view of NZX’s stream return forecast and volatility indicators. 

“This bi-monthly report can help readers with insights to assist in understanding the dairy futures market,” NZX Dairy Data and Insights team leader Cristina Alvarado said.

“We estimate that almost 25% of NZ’s milk production (at a farmer and processor level) is now utilising some form of price risk management tool but we are a long way behind the use by farmers of these tools in the United States and Europe.”

Alvarado’s team at NZX monitors all aspects of global dairy markets and their NZ implications, writing nine regular reports and custom reports on request.

Former Fonterra senior adviser Alvarado is the commercial manager for services and subscriptions, assisted by dairy analysts Rosalind Crickett and Lewis Hoggard.

Venezuelan-born Alvarado has a BA and LLB plus a Master’s in international business (Hons) from the University of Auckland.

From a rural background, Crickett graduated from the University of Waikato with a BMS in agribusiness and strategic management, and Hoggard graduated from Auckland with a BCom in finance and economics.

Their work timetables are calendar driven and dominated by the fortnightly GDT Trading Events and alternating Pulse auctions, including pre- and post-market reports, along with the cycle of daily, weekly, fortnightly and monthly reports (see below).

NZX has one-third ownership of the GDT platform with Fonterra and the European Energy Exchange (EEX).

About 30%, or more than 6000, NZX report users/subscribers are outside of NZ in more than 25 countries as market participants and observers seek information about our dominant dairy industry.

Farmers, processors, traders, brokers, buyers  and financial services subscribe to bundles of up to six regular reports, along with access to market data and historical information going back 25 years.

Dairy farmers may find most useful these six relevant reports: the Daily Dairy Update, Dairy Insight, Grain and Feed Insight, NZ Pasture Growth Index (PGI), Milk Production Predictor and the latest, Pre-GDT Digest.

The Milk Production Predictor goes back to farm level with the Farmgate Milk Price Calculator, updated two days after every GDT event, with a forecast view into the current season and the next.

Farmers can input their own figures to generate a personalised price forecast.

The PGI weekly reports regionally and nationally and the data is updated daily, with access to a forecasting tool on pasture growth expectations.

Farmers use Dairy Insight to understand the drivers of their milk price and forecasts for the coming seasons, and benchmark feed input costs.

The Grain & Feed Insight is a practical tool to assist in making profitable decisions as a buyer or seller of feed grains.

It has international and national prices and commentary on market trends.

Growers who are members of the Foundation for Arable Research (FAR) receive a subscription discount.

NZX has a group of farmers who are partners, receiving free or discounted subscriptions in return for regular conversations with NZX analysts to better understand regional differences in factors leading to production.

NZX holds seminars for farmers and other industry participants on the education of dairy derivatives as risk management tools, guiding but not providing financial advice.

It is also an organiser of the annual SGX-NZX Global Dairy Seminar, to be held this year, October 7 to 9 in Singapore.

It is the cornerstone event for the dairy industry to convene, share perspectives and stay informed on the latest market developments with international stakeholders across Asia, Oceania, Europe and the Americas.

The Dairy Trade Statistics reports provide insights into exports and import statistics of dairy commodity figures from Australia, the United States, European Union, Argentina and China. 

The NZX Dairy team has taken over the release of New Zealand’s national milk production, previously published by the Dairy Companies Association of NZ, which is available to the public on its website and by email distribution list upon request.

NZX Data and Insights also undertakes special surveys and reports on request, seeking to bring better understanding of topics such as a region’s milk production or dairy market country.

Alvarado said all new accounts have free trial periods and that customers can select to bundle different reports to suit their needs and budgets.

Free trial: NZX, New Zealand’s Exchange

Global Dairy Seminar: SGX-NZX Global Dairy Seminar 2024 – Singapore Exchange (SGX)

NZX Dairy Team Products

• Dairy Update: Incorporates the latest relevant news from local and global dairy markets. It includes daily, weekly, GDT forecast and GDT results reports.

• Pre-GDT Dairy Derivatives Digest: Bi-monthly report covers futures prices, cross-commodity exchanges, a view of NZX’s stream return forecast and volatility indicators to help readers make informed decisions in the trade of milk and dairy derivatives futures/options.

• Monthly Dairy Report: In-depth analysis on key factors influencing the dairy industry, both internationally and within NZ.

•  Global Dairy Snapshot: Weekly NZX survey prices for WMP, SMP, cheddar, butter, casein, and AMF. It also contains prices from across the globe.

• Dairy Trade Statistics: Monthly export data for the main dairy commodities for NZ, Australia, US, EU and Argentina. This subscription includes access to use of raw data.

• NZ Pasture Growth Index (PGI): Weekly report on this topic and access to the PGI tool.

• Milk Production Predictor:  This subscription includes access to the NZX Milk Price calculator.

• Dairy Insight: Weekly insights report that interprets what is happening in the global dairy commodity markets and what this will mean for farmgate milk prices here.

• Grain & Feed Insight: Bi-monthly report on independent commentary and analysis of prices and industry trends.