WELLINGTON: New Zealand’s terms of trade fell 2 per cent in the December quarter last year, dragged down by the declining value of the country’s dairy exports.
In statistics released today, Stats NZ revealed the export prices fell 5.7 per cent from the previous quarter, while dairy shipments values dropped 13 per cent. Export volumes were also down, because of a big drop in the amount of wool leaving NZ’s shores.
With prices at the Global Dairy Trade auctions falling for every auction held in 2016, dairy farmers in NZ and Australia are coming under pressure. A recent survey from NZ’s Federated Farmers revealed more than one in 10 dairy farmers are under pressure from their banks.
The story won’t surprise local dairy farmers, with Australia’s largest dairy company telling its 2500 suppliers there is no hope of an increased milk price this season.
Murray Goulburn released its half year profits result including a $9 million profit, below its forecasted target, but farmers have been told their milk price would stay at $5.60 a kilogram/milk solids. Managing director Gary Helou said it had been an up-and-down year in world markets.
