Like many dairy farmers he had become conditioned to bad news but then 24 hours later to have Fonterra report strong full-year result prompted the Woodville dairy farmer to tentatively mutter phrases like “weathered the storm” and “industry recovery”.
“It feels like we’re placed in a pretty good spot and we have weathered the storm pretty good.”
For his 1300-cow business, Allomes said this week’s flurry of positive news was the difference between a significant financial loss for the year to a better than break-even result.
It would allow him to address some deferred maintenance.
Understandably, he expected some farm suppliers to increase prices to recover squeezed margins.
Southland farmer Russell Falconer was cautious, saying in each of the past two years global auction prices had increased in spring only to fall later in the season.
But he acknowledged global dairy stocks had fallen and the fundamentals were tipping back in New Zealand’s favour.
South Otago farmer Stephen Korteweg said the improved payout together with an exceptional spring was exactly what sharemilkers and young farmers needed.
