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14 March 2022
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Market Commentary

Dairy outlook positive. PGG Wrightson Livestock Report

Listen Now. Jamie Mackay from The Country caught up with the other Jamie – Jamie Cunningham, National Dairy Specialist at PGG Wrightson – live from the farming capital of New Zealand – Feilding.

First topic for discussion was how the red-light system is affecting the Friday sale at the Feilding sale yards. Jamie Cunningham reckons they’re not finding it a problem. A vaccine pass is required to enter the sale yards and a face mask is required inside. With the sheep sale outside and cattle sale inside, it’s manageable.

Jamie Mackay then turned to the milk forecast price for this season - $9-70 – and the futures market for next season – already at $10. Surely this is affecting the price of cows, considering now is the time a lot of dairy herds are traded. Jamie Cunningham responds by saying that, comparative to the pay out, some are saying herds haven’t gone to the highs expected. But good herds are trading anywhere between $1850 and early two thousands. Enquiries are strong but haven’t gone silly like they did back in the dairy boom. Overall, the outlook is positive with good milk prices justifying current herd prices.

Jamie Mackay closes by asking whether the Manawatu is drying out like other parts of the country. The other Jamie reckons they’re in need of another good rain but that all-in-all, the region’s in good shape.

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