Archive for December, 2008

Cartage confuses price comparison

December 13, 2008

Silver Fern Farms (SFF) announced without any warning on 1 December a new South Island cartage policy which, according to the half page advertisement, will level the playing field for all suppliers, creating ‘transparency and equality’ for suppliers across New Zealand. So if suppliers want to be part of ‘an open, transparent farmer owned co-operative’ they should send their livestock to SFF. (more…)

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Meat company results impressive, but hard to maintain

December 8, 2008

The 2008 season’s meat company profits all follow a consistent pattern, with AFFCO’s result released last Thursday confirming what Silver Fern Farms (SFF) and Alliance had already shown. It was a year for the processors to recover from the trauma of 2007 and reintroduce some strength to their respective balance sheets.

 

But as with all annual results, the period they cover has passed and, apart from the beneficial effects of higher levels of equity, what happened last year is already ancient history. The world has changed beyond recognition in the two months since the end of last season. The only market that retains recognisable shape is the European pre-Christmas chilled lamb trade, but nobody knows how well the retailers’ business will hold up. (more…)

Fonterra’s Auction System Destroys Milk Powder Price

December 2, 2008

Fonterra launched its new whole milk powder internet auction system in July claiming it would provide an objective market price and would be to the benefit of New Zealand’s dairy farmers. Unfortunately it appears to have had just the opposite effect, because prices at auction have fallen by up to US$1700 over the period. (more…)