Agsafe Weekly Rural Report

Finance:  The NZ dollar eased through the week and finished lower than the previous week.  A number of economic commentators cannot work out why the US dollar is remaining strong against other international currencies.

Wool:  Some farmers are even prepared to give their wool away.  Wool prices do not cover the shearing costs for the coarse wools.

Beef, Sheep & Venison schedules: Sheep and beef meat schedules are mostly unchanged for the coming week with only minor intercompany movements.  Beef and lamb prices are disappointing and like the dairy industry, are many farmers trading at a loss.

Dairy Prices:  The WMP trading is below $US3,000/tonne and the Farm Gate price is now in a range of $6.25 to $7.75 with $7.00 as the mid-point.  This is below the break-even price.  Synliat has also dropped its price to $7.00/kg.  European and South American WMP prices are around 20% higher than the Oceania prices!!