AGSAFE WEEKLY REPORT

Finance:  The NZ dollar is steady to slightly easier at the end of the last week.  The increase in the minimum wage in 6 weeks time will fuel inflation.  Businesses cannot stand wage increases without increases in productivity!!!

Wool:  Wool prices remain in the doldrums.  Some European carpet makers are moving to 100% over the next 2 years.

Beef, Sheep & Venison schedules: The changes in the meat schedules have the North Island schedules trending upwards as farmer retain stock to eat the unseasonal grass growth.   Most South Island schedules are steady.  Lamb schedules are disappointing.

Dairy Prices:  The g/DT lifted 3.2% at Tuesdays auction.  Big volume was offered.  Butter up 6.6%, WMP up 3.8%, SMP n/c.  It was a positive result in a difficult market.  There has been no change in the Farm Gate milk prices offered by Fonterra yet. 

Harvesting of the early maize is underway.  There are many paddocks that are wet and harvesters will be unable to access them.  This is another problem to an already difficult cropping season.  There are reports that up to 60% of the maize crop in the BOP has been lost.  Yields will be down and there will be a shortage of feed harvested. What contingencies have you made for the winter and supplementary feed?