Chinese demand provides cushion
Reviving demand in China is providing primary sector exporters with some cushioning from covid-19 fallout as other countries start slipping into recession.
Having earlier this year weathered the virtual shutdown of China as it battled to contain covid-19, meat companies are seeing improved demand as life there slowly returns to normal.
Government restrictions confined people at home, preventing them working, shopping or eating at restaurants but they are slowly being lifted.
Citing data for January and February from China’s National Statistics Bureau a Rabobank analysis says online sales rose 9% in China compared to a year earlier but year-on-year food retail sales fell 6% and food service 43%.
Dairy holds up well in virus storm
Dairy prices are holding up better than other commodities and the New Zealand dairy industry is well-placed to weather the covid-19 storm, leaders and analysts say.
The Global Dairy Trade index fell by 3.9% last week and has now fallen 12% since covid-19 hit China in mid-January.
Whole milk powder fell to US$2797/tonne, having lost about $500 since its recent peak in December.
Kiwifruit harvest tougher with worker loss
The kiwifruit sector has been left hundreds of workers short after New Zealand’s unprecedented border shutdowns locked out seasonal workers for good this season.
Kiwifruit Growers chief executive Nikki Johnson confirmed 1300 Recognised Seasonal Employer workers from the Pacific Islands unable to get here. That represents more than half the region’s allocation for RSE staff.
The sector is seeking special dispensation to fly the workers in despite the border closure.
Overall, the industry requires about 20,000 staff through the busy harvest season and last year declared a regional labour shortage early to ensure special allowances could be made for working visas.
Wool market suffers
The wool market was challenged to its full extent this week having to cope with a number of complex issues facing the industry.
South Island wool sales manager Dave Burridge said the pandemic wave sweeping the globe continues to erode confidence right along the wool pipeline as the world textile trade tries to cope with shifting commodity market trends.
Dramatic currency movements have added further stress to wool exporters’ ability to trade with confidence with the finer wool breeds and 30 micron and stronger lambs’ wool getting the full downward impact.
Interestingly, crossbred fleece, second-shear and oddments held their ground be it at existing depressed levels with 29% of the offering at Christchurch on Thursday passed in for failing to reach grower reserves.
The next South Island sale is on April 2. With no North Island sale this week, the next sale is scheduled for March 26.
B+LNZ annual meeting goes online
As a result of the covid-19 pandemic the B+LNZ Western North Island showcase has been postponed. However, the statutory annual meeting part of the day will still proceed with no physical attendees.
A total of 1506 votes and/or proxies have been received to date for the annual meeting so a quorum is available and it makes sense to complete the meeting.
The presentations will be recorded and available soon after.
Oceania Dairy limits travel
Oceania Dairy is taking measures to keep staff well and the factory running in the face of rising demand from China.
The company has stopped all non-critical staff travel and is trying work-from-home measures where possible.
General manager Richard Hickson said as a direct employer of up to 400 people in South Canterbury and North Otago Oceania is strongly aware of its responsibilities to keep people well and working.
“We’re a young and innovative company and we’re proud of the fact that we are an important employer for many of our community. But this event is unprecedented in New Zealand and so we are moving quickly each day to adapt in order to keep everyone well and employed,” Hickson said.
Oceania staff are being asked to restrict travel in their own time and to tell the company if they have travelled. Non-essential visits to the Glenavy site have been halted.
