Outlook for dairy is bright but tougher times for beef
ICMSA has always disliked the ‘white gold’ hype indulged in by some commentators — and we’ve always noted how few farmers are to be found in these excited ranks. We prefer to trust in the internationally acknowledged standard of our milk and after that to make haste slowly, acting prudently, always mindful of the fact it is the farmer who has to invest the money necessary to expand. And it is the farmer — and the farmer alone — whose income is largely dictated by milk price.
The continuing resurgence of international dairy markets must also be noted. Dutch dairy quotations are rebounding strongly, with butter/SMP up 21% since their lowest point in December. The drought conditions affecting part of New Zealand’s production will feed in to a rebalancing of global supply and demand. These, taken alongside the reductions in European supply due to superlevy, are all contributing to an increase in confidence regarding our milk price for the balance of 2015.
