March 6, 2013

 

New Zealand's Northland farmers face rising feed shortage

 

 

Already affected by drought conditions and a poor season for haylage and silage, farmers in Northland, New Zealand, could be facing a further feed shortage as the highly demanded palm kernel expeller (PKE) are in short supply.

 

Farm supply companies, RD1 and Ravensdown, said that they have enough PKE for contracted farmers only, but there is scarcity on the spot market.

 

Farmers, who do not have contracts for the feed, need to get in soon.

 

Palm kernel is used on dairy farms as a supplement for milking cows.

 

As PKE is a by-product, a decrease in demand for the palm oil for consumer products results in a shortage of kernel extract.

 

Northland was declared a drought zone and Northland Rural Support Trust spokeswoman, Julie Jonker, said that the lack of available feed was another hit for the region's farmers, who were finding the situation desperate.

 

She added the rain forecast for February has caused many Northland farmers not to take up contracts for PKE.

 

An RD1 spokeswoman said its PKE stocks were low and there was none available on the spot market other than in Tauranga, where a shipment of PKE arrived last week - although that was meant for contracted farmers.

 

"All contracted tonnage is guaranteed and will be delivered as per contract agreement," the spokeswoman said.

 

"We advise there is still some spot market tonnage available to Northland farmers out of Tauranga but this is not expected to last long," the spokeswoman said.

 

A spokesman for Ravensdown said the PKE situation was changing daily but all its contracted customers were guaranteed their delivery. The company had some PKE on its spot market, but this was going fast and farmers in need should get contracted soon.

 

As of last week, the three-month contract price for PKE was US$330 per tonne.

 

Meanwhile, the Inland Revenue Department has announced help for drought-hit Northland farmers.
 

Farmers, whose income will be significantly affected by the drought, will be able to make late deposits for the 2012 income year to April 30. The concession means farmers can better plan their financial response to the conditions.