Home' NZ Dairy Farmer : November 2014 Contents Positive picture painted for future
The low Fonterra payout looks set
to remain over the short term as
long as Russia retains an import
ban in all food from EU countries.
But how long this ban remained was
anyone’s guess, according to Fonterra
director Ian Farrelly.
Russia banned all imports from their
dairy industry markets in Europe in
response to sanctions imposed on them
because of the conflict with the
Europe sold Russia 250,000 tonnes of
dairy products annually.
That stopped overnight when the ban
went up, Farrelly told farmers at a
Smaller Milk and Supply Herds
(SMASH) group seminar at Lake
Karapiro in October.
This extra product then went into the
dairy market at a time when there was
already a surplus of stock all of the
world’s major dairy exporting nations
experiencing outstanding production
years in 2013.
‘‘When you have a quarter of a billion
tonnes of product, it’s a different
situation. We think the situation’s very
complex and could well play out for
quite a while,’’ he said.
In contrast, demand in the Chinese
market was slowly increasing and they
were starting to return to the buying
bench at the GlobalDairyTrade.
Whole milk powder price would have
to lift to $3500 by March to sustain the
current $5.30 forecast.
Farrelly believed there was ample
opportunity for this to occur.
He was also bullish about the outlook
for milk prices further ahead.
‘‘Long term demand will outstrip
supply and outstrip in at a significant
level and these sorts of prices. $5.30 is
not the new normal at all.’’
The payout will lift, but how quickly
that occurred depended on when Russia
lifted its import ban, he said.
That positive view was shared by
ANZ rural manager Geoff Pridham, who
spoke at a Waikato Federated Farmers
dairy industry group meeting in
Pridham said they were looking at
what all of their customers who had
used 50 per cent of their overdraft limit
had forecasted through the next couple
‘‘It’s not that bad. It’s tight for sure
and they will go heavily into overdraft
but it is not as bad as what you would
Those farmers that were in trouble
were those who made no money when
the payout was at it peak last season, he
The Dairyman November 2014 15
Kidd to chair women’s network
Justine Kidd is the new chair of the Dairy Women’s
WHO IS JUSTINE KIDD?
Hailing from Hawke’s Bay, Kidd
heads the BEL Group, a private dairy
farm milking 9500 cows. She is a
shareholder in Dairy CHB, which is
now milking 1000 cows across two
properties in its second year of
operating, and she also owns JMK
Consulting – a business leadership
firm – as well as holding several
Since graduating university with a
Bachelor of Agricultural Sciences
(Honours) in 1993, Kidd has been
employed with the Dairy Board as a
consulting officer; worked as a farm
production scientist for Dairy
Research Corporation; in dairy farm
property development, and as a
trainer/facilitator of leadership,
people and performance and
business strategy programmes.
She has also had a fulfilling career
with Equestrian Sports NZ, including
the role of chief executive, and
created Avance Ltd, a dairy farm
sharemilking partnership, with her
sister and brother-in-law.
FORMER Dairy Woman of the Year
Justine Kidd has been appointed
chair of the Dairy Women’s
Incumbent chair Michelle Wilson said
Kidd, the 2013 winner, would take up
the role after the organisation’s annual
meeting on October 22.
‘‘It is a credit to the Dairy Women’s
Network board to have a person with
Justine’s knowledge of agriculture and
governance experience at the helm,’’
‘‘I take a lot of comfort in knowing
that the organisation will continue to
grow from strength to strength with
strong leadership at the board table.’’
Kidd said she was excited to be
working with chief executive Zelda De
Villiers and the team at the network.
‘‘I’m really looking forward to the
challenge and am thrilled to get my first
chair opportunity with a chief executive
like Zelda and an organisation that has
a strong fit with my own leadership
goals,’’ she said.
‘‘The sense of responsibility to do a
great job for the DWN will drive me.
The network has come through a
significant development stage under
Michelle’s leadership. It is poised to
move into its next phase of growth and
Kidd said her ambitions firmly lay in
building positively on a fantastic
foundation, and working with the board
to support the ability of DWN to
sustainably deliver great outcomes for
its members and the dairy industry year
in and year out.
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