April 21, 2015

                                                                                        

New Zealand sees falling farmgate milk price this season
 

 

Against the backdrop of a strong currency, the farmgate milk price in New Zealand is expected to fall from 2014's record price of US$6.42/kg for milk solids to US$3.60 this season.

 

With the impact of droughts on some areas in the South Island, the development has caused purchasers to be heedful of the recent drop in payout, according to Brian Peacocke, Real Estate Institute of New Zealand's (REINZ) rural spokesman.

 

Adding to worries are the lower farm sales during the three months ended in March, at 47 sites which is 10% fewer compared to the same period in 2014. Also, there were a total of 425 farm sales in the three months to end-March, a lower figure than the 464 sales seen in the three months ending in February. This represents an 8.4% dip.

 

In the year to February, the number of farms sold was 1,802, a 2.2% drop from 2014.

 

However, increased sales volume were observed in three regions during the three months ended on March 2015 when compared to the same period last year.

 

According to the New Zealand Herald, the level of activities at dairy farms was maintained in Canterbury, Otago and Southland.

 

Over the three months to March, dairy sites held a 20.3% share of properties. The median sales price (per hectare) for dairy farms was US$28,876, with 86 properties, compared with US$34,495 for the three months ended on February, at 97 properties, and US$26,358 for 102 properties during the three months ended in March 2014.

 

For the three months ended in March, the median dairy farm size is 112 hectares.

 

In the three months to March, the REINZ Dairy Farm Price Index declined by 2% from the three months toward February last year.

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