Early Bird I Thursday May 23rd 2024

Global Dairy Trade prices finish season on a high, Great Britain become the first in Europe to ban live exports, and tens of millions of dollars to boost Gumboot Friday Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather! Global Dairy Trade prices finish season on a high Fonterra’s milk price forecast for the 2024/25 season, set to be announced next week, is projected to exceed $8 per kg of milksolids (kgMS) after a stronger-than-expected Global Dairy Trade (GDT) auction.  The auction, the final one for the current season, saw impressive performances from all of Fonterra’s reference products, contributing to the co-op's farmgate milk price formulation.  Anhydrous milk fat achieved another record high, with China re-emerging as a significant buyer. Whole milk powder, crucial to Fonterra’s milk price forecast, rose by 2.9%, marking the second-highest price in the past year. Skim milk powder increased by 3.5% butter surged by 5.1% to its highest level in 12 months, and anhydrous milk fat rose by 3.5%. New Zealand's milk production for April decreased by 4.1%, with flat production in the Northern Hemisphere also influencing the price action.  Most banks have set their forecasts around the mid-$8 range. Rabobank predicts an $8.40/kgMS price for the 2024/25 season but cautions that the global dairy price recovery could be gradual. Fonterra’s latest forecast for the current season stands at $7.50 to $8.10. DairyNZ’s break-even milk price for the 2024/25 season is forecasted at about $7.76/kgMS. Hopes that rural banking concerns can be raised in person at select committee New Zealand Agri Brokers Limited (NZAB) has raised alarms over the financial future of the country's agricultural sector, highlighting significant concerns about banking regulations that could jeopardise farmers' access to necessary capital.  In a detailed submission, NZAB is seeking an opportunity to present their case in person to the Government’s Primary Production Select Committee. They believe the agricultural sector is being stymied by a heavily regulated banking environment that is causing a slew of financial difficulties for farmers. Critical issues affecting farmers include higher interest rates charged to improve bank capital ratios, a reduction in the number of bank staff, and a decreased risk appetite for agricultural loans.  A primary concern is the Reserve Bank of New Zealand's requirement for banks to hold more capital against rural loans, which NZAB says has increased borrowing costs for farmers. resulting in banks needing to hold twice as much capital for agricultural loans, leading to higher interest rates for farmers. NZAB also points out that banks are shifting their focus from rural and business lending to home loans, further constraining the availability of capital for the agricultural sector.  Since the new RBNZ capital regulations were enacted in 2011, there has been a noticeable decline in rural lending, despite the rural sector maintaining its GDP contribution. NZAB's is urging the committee to consider their perspectives and recommendations seriously to prevent a looming financial crisis in New Zealand's vital agricultural sector. Great Britain become the first in Europe to ban live exports Great Britain has made history by becoming the first region in Europe to ban the export of live animals destined for slaughter or fattening.  The new Animal Welfare (Livestock Exports) Act, marks a significant shift in animal welfare legislation, made possible by the UK's departure from the European Union. The legislation prohibits the export of live cattle, sheep, and pigs for slaughter and fattening from England, Scotland, and Wales.  Instead, animals will be slaughtered domestically in high-welfare UK slaughterhouses, which is expected to enhance the profile of British meat. Environment Secretary Steve Barclay says the UK is committed  to maintaining high animal welfare standards, and that the new Act leverages post-Brexit freedoms to fulfil a key manifesto commitment, thereby strengthening these standards further. The Act also ends the trade of sheep and lambs for slaughter and fattening, as well as calves being sent to continental Europe for veal farming. Additionally, it applies to goats, pigs, wild boar, and horses. However, live exports for breeding and competitions will still be permitted, provided the animals are transported under conditions that protect their welfare. The legislation follows a consultation in which 87% of respondents supported ending live animal exports for slaughter and fattening.  And for a deeper dive into live animal exports check out the latest Country Wide podcast Episode 21,  at country-wide.co.nz/podcasts  Tens of millions of dollars to boost Gumboot Friday Thousands more young New Zealanders will soon have better access to mental health services, thanks to the Government's commitment to fund the Gumboot Friday initiative, announced by Deputy Prime Minister Winston Peters and Mental Health Minister Matt Doocey. Budget 2024 will allocate $24 million over four years to contract the I Am Hope Foundation, providing young people aged between 5 and 25 with free mental health counselling services through the Gumboot Friday initiative. Mental Health Minister Matt Doocey acknowledges that the Government cannot address the mental health challenges alone and says its important to partner with proven organisations like I Am Hope that address community needs directly. Research indicates that every $1 invested in I Am Hope results in a social return of $5.70 to New Zealand. Craigmore Sustainables secures FSC certification Craigmore Sustainables has reinforced its dedication to sustainable forestry management with the certification of its Northland forestry estate.  PF Olsen, New Zealand’s largest forestry provider, has secured Forest Stewardship Council® (FSC®) certification for ten Craigmore forests under its management, with plans for additional certifications in the near future. FSC certification is a rigorous process establishing standards for responsible forest management and reporting. This certification allows forest managers to demonstrate that their forests are managed sustainably in accordance with environmental, social, and economic standards. FSC forest management emphasises engagement with neighbours, iwi, and local communities, fosters ecological management by maintaining and enhancing ecological values of the forest, and reduces the negative effects of soil erosion and chemical usage. See omnystudio.com/listener for privacy information.