Friday, July 17, 2015
Since Sept 27, 1879
Retail $1.50 Home delivered from 95c
THE INDEPENDENT VOICE OF MID CANTERBURY
www.guardianonline.co.nz
For Pendarves dairy farmers Kane (left) and Frank Peters the latest milk price drop is just another dip in a lifetime of highs and lows in the dairy industry. PHOTO AMANDA KONYN 160715-AK-065
Labour MPs’ flying visit P4
Falling prices . . . been there before BY MICHELLE NELSON MICHELLE.N@THEGUARDIAN.CO.NZ
Property July 17, 2015
Industry Comment
& LIFESTYLE
P7
Ways to mak e your home more attractive to buyers
What's On
P14 -15
Enjoy Sunday at the trots Bookbinder
Open Homes
New beginnin
Proudly mark eted
What’s O n
P16
This weekend 's district open homes
gs
by Harcourts FURTHER DETA ILS P2
INSIDE Check out Wh at’s On in you community r on pages 14 & 15 * Com
munity Even ts * Shows * Bands * Resta urants * Balle t
In the face of falling dairy prices it’s business as usual for a Pendarves family. In a day of doom, yesterday farmers awoke to the news the latest Global Dairy Trade (GDT) price index had dropped by 10.7 per cent from the previous sale a fortnight ago to register its biggest fall in 12 months. Whole milk powder, responsible for about 75 per cent of Fonterra’s farmgate milk price, fell by 13.1 per cent to $US1848 a tonne – hitting its lowest level in six years. Fonterra’s current milk price forecast of $5.25 per kilogram of milksolids for 2015/16 is based on GDT prices reaching about $US3500 a tonne towards the end of this season. The ANZ bank responded by revising down its Fonterra farmgate
milk price to between $3.75 and $4, well below the $5.70kg/MS DairyNZ estimates as the break-even point for most farmers. Later in the day Fonterra announced 523 jobs were to go to save up to $60 a million a year on its payroll. Pendarves dairy farmer Frank Peters has seen it all before. He’s been in the business since the 1980s. “When we started sharemilking in 1984 we got $4.12 for a pound (0.450kg) of butterfat which it was called then,” he said. “In our second year it was $2.25 a pound. “Prices have been up and down like a yo-yo ever since.” Frank and his son Kane have a plan in place to get through the tough times ahead. Capital expenditure will be pared
back to the bare essentials, fertiliser will also be kept to basic levels. While times were good they invested in a winter feed pad and two fully automated milking sheds. Mr Peters said yesterday’s news came as no surprise – and he’d been preparing for it for a while. “We’ve got good feed reserves, and we grow most of what we need on farm,” he said. A lucrative winter milking contract will also help with the cashflow over the next few months, while many farmers will be running on empty. But he said it would be a different story for those new to the industry – in particular lower order sharemilkers.
MORE
P3, 4 Ph 03 307 7900 to subscribe!
Weather: High 9˚ - Overnight -2˚ Page 22
Puzzles: Page 21
Television: Page 23
Family Notices: Page 22
www.guardianonline.co.nz