Early Bird I Monday December 2nd 2024

Milk prices poised to hit record highs, SIDE launches Trans-Tasman dairy exchange, and entries open for 2025 NZ Champions of Cheese Awards. Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!   Milk prices poised to hit record highs The current dairy season is shaping up to be a possible game-changer, with milk prices climbing to potentially record-breaking levels. Current forecasts are seeing milk prices range between $9.50 and $10 per kilogram of milksolids. Bank of New Zealand senior economist Doug Steel says that while historically high milk prices have often coincided with lower production, this season tells a different story. The combination of strong pricing and higher milk volumes could generate over $3 billion in additional revenue for the dairy sector. Fonterra is projecting its most impressive milk collection season since 2020, expecting to gather 1.498 billion kilograms of milksolids. This represents a substantial increase from last year's 1.47 billion kilograms. October proved to be a standout month, with national production rising 2.8% to 261.4 million kilograms. Early calving and exceptional winter grass growth have been key drivers. The SGX-NZX Milk Price Futures are currently trading above $10 per kilogram. Most major banks are forecasting prices between $9.50 and $10 per kilogram, with Fonterra and Synlait both setting their midpoint forecasts at $9.50. Internationally, the outlook remains promising. Rabobank's quarterly report suggests a turning point for milk supply across major export regions, with production expected to grow 0.5% in the year's second half.   No resolution in sight for Canadas CPTPP block Our dairy industry remains locked in a determined trade challenge against Canada, with ongoing negotiations under the Comprehensive and Progressive Trans Pacific Partnership revealing the complex dynamics of international agricultural markets. Trade Minister Todd McClay continues to champion New Zealand's position, highlighting a potential $200 million opportunity blocked by current Canadian trade restrictions. The dispute centers on Canada's dairy market regulations, which limit international dairy product entry. A recent CPTPP panel largely supported New Zealand's argument, finding Ottawa's current policies conflict with partnership principles. Negotiations commenced last month, signaling continued diplomatic engagement. Canadian Trade Minister Mary Ng acknowledged that trading partners will naturally encounter differences.  The core issue revolves around Canada's tightly regulated dairy industry, which uses central planning to control volumes and pricing. This approach directly impacts New Zealand's dairy exporters, who seek greater market access. While Canada maintains a robust defense of its supply management system, New Zealand remains resolute. McClay emphasized the importance of the CPTPP as a high-quality agreement, while clearly stating the government will persistently pursue this matter. Canadian authorities remain committed to their agricultural protection strategy. A joint statement from Ng and Agriculture Minister Lawrence MacAulay reinforced their determination to defend the country's dairy sector, highlighting the political strength of Canadian agricultural lobbying.   SIDE launches Trans-Tasman dairy exchange An innovative delegate swap between New Zealand and Australian dairy conferences has been announced. The South Island Dairy Event (SIDE) has unveiled an all-expenses-paid exchange for one delegate to attend the Australian Dairy Conference (ADC) next year.  The Australian Dairy Conference, draws thousands of rural professionals each year, is being held on the Queensland Gold Coast from February 12-14r . Renowned for delivering compelling keynotes and targeted workshops, the event represents a critical networking platform for dairy industry experts. SIDE will welcome Australian dairy professionals to next year’s conference in Timaru from April 7-9. This two-way exchange demonstrates a commitment to collaborative learning and shared agricultural advancement. Farmers interested in this unique exchange opportunity should contact SIDE directly.   Honey organisations look to join forces ApiNZ and the Unique Manuka Factor Honey Association are exploring a merger that could reshape the sector's future. ApiNZ chair Nathan Guy explained the move comes after challenging financial times for the body, noting their current funding model isn't sustainable. With honey returns dropping, the organization has made tough decisions, including reducing staff, leaving their Wellington office, and seeking new ways to support the industry.  The proposed merger aims to create a more robust organization with a stronger export focus. The leadership believes this move makes common sense, particularly in creating a financially viable entity capable of delivering on their ambitious goal of doubling honey export values by 2030.. The new organization will maintain critical functions like bee health advocacy and government representation, while adding a more dynamic approach to export development.   Entries open for 2025 NZ Champions of Cheese Awards Entries for the 22nd annual NZ Champions of Cheese Awards are now open. This year introduces some special categories. The Woolworths Sustainability Award will focus on environmental initiatives, examining water management, soil health, and energy efficiency. The biannual Innovative Packaging Aspiring Cheesemaker Award will recognize emerging talent in the field. Master Judge Jason Tarrant will lead a panel of 25 judges, including three new recruits trained during New Zealand Cheese Month in October.  Entries close on Friday, 21st of February next year, with medal winners announced on March 25, Trophy winners will be announced at the Awards Gala Dinner in Hamilton on May 1st. For the first time, entries can be submitted online through the cheeseloversnz website cheeseloversnz.co.nz  See omnystudio.com/listener for privacy information.