Dairy prices continued to fluctuate through the early stages of 2010 but, since rebounding in early September, they have been largely stable. Stabilising prices have been good news for the market and also for NZ dairy farmers in terms of Fonterra payout. We are positive about the outlook for dairy in 2011. However, some pressure may come on prices if supply growth continues in the main producing nations in the Northern Hemisphere. The latest example is US milk production lifting 2.7% in November compared to a year earlier.
So there you have it. Our fault.
Who cares about NZ. They are nothing close to our size. You all should like them because they are the "little guy"! Our production problem started with one thing which is California land prices. Many got rich and moved to other states and built mega-dairies. Those that stayed got bigger because the banks gave them money because the land values. Milk prices will get better when the California money runs out!
ReplyDeleteThe California money has run out. We are a small cooperative of 33 family farms (not a mega among them) that are struggling just as the rest of the country is. To blame California for the milk prices being what they are is unfair and shows someone isn't paying attention.
ReplyDeleteRemember that NZ only uses a small amount of dairy products for their domestic consumpton and export the rest including cheap mpc's that end up illegally in our cheese vats(kraft, fast food slices and such). Fonterra (NZ) is the most sophisticated exporter in the world including exporting our US powder for us!!! They also partner up with some of the largest food processors in the world. ie. in South America they partner with Nestle, providing dairy ingredients and technology and use local sourced milk to produce cheap cheese directly imported to the USA, sending profits back into good ole New Zealand. Tiny country, mammoth player in dairy.
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