NZ exporters stand to get the jump on their European and United States competitors for the Chinese market because of a better container supply. The ASB is predicting a rocky road ahead for the primary sector as commodity prices come under pressure from a confluence of forces including drought and covid-19. AgResearch has been crunching the numbers on hill country sheep and beef nitrous oxide emissions to show they are significantly lower than thought. Kiwis are flocking to online specialty food delivery sites, even if they have to pay a price premium. Appearing before Parliament’s Epidemic Response Select Committee, Federated Farmers president Katie Milne says freshwater reforms could cut agricultural earnings by 10-30% in some regions.
Surprise – world dairy prices up
Markets were taken by surprise this morning as dairy prices lifted by 1.2% overall at the global dairy auction, evidence of a growing demand in Asian and Oceanian countries. The biggest rise, 4.5%, was for butter but New Zealand’s key export whole milk powder was also up, by 2.1%.
Farmers on the alert for mischief makers
Federated Farmers is reminding farmers to keep an eye out for people who might be up to no good during the lockdown. Rural areas are extra quiet with no one going to school, collecting firewood, hunting during the roar or setting up for duck shooting. Nothing in the way of a crime wave has yet been reported.
NZ exports are keeping moving
Kiwi exporters have a better supply of containers than their counterparts in the United States and Europe with so many containers languishing on wharves in China. To add to the northern hemisphere woes there are shortages of manpower because of covid-19 disruption. That’s not to say there might be some shipping hiccups for NZ but they should be minimal.
Interest rates to stay low as commodity prices tipped to fall
Uncertainty is the theme of the ASB’s latest rural update. One bright spot in the gloom is that interest rates are likely to be lower for longer but milk, lamb and beef prices will fall. There’s also a question mark over the future of apples, kiwifruit and wine, which might become luxury items in the future.
Hill country sheep and beef produce less nitrous oxide
Sheep and cattle farmed on hill country produce lower greenhouse gas emissions than earlier believed. AgResearch says its new calculations cut total sheep emissions by 10.6%, beef cattle emissions by 5% and dairy cattle emissions by 1.4%.
Online shopping entrepreneurs profit
A myriad of online sites have set up to send food to Kiwi consumers during the lockdown, pushed along by official advice that food producers can make deliveries. The pivot to online might be a lasting phenomenon according to Auckland University marketing expert Associate Professor Mike Lee.
Tonight on Sarah’s Country:
7.10pm – Deer Industry NZ chief executive Innes Moffat gives an update on the disruption to the export of venison into China and the United States as well as the latest in velvet quality research.
7.20pm – Economist Cameron Bagrie demands councils have a nationwide rates freeze and we take your questions on the economic impact of covid-19.
7.30pm – Landpro executive director Kate Scott shares her thoughts on the progress of regional councils to push forward with plan changes and her thoughts on the Essential Freshwater policy announcements.
7.40pm – NZ Pork chief executive David Baines is angry the Government can't see the animal welfare issue of not supporting independent butchers to operate.
