GlobalDairyTrade result positive

The latest GlobalDairyTrade (GDT) result is being welcomed by Federated Farmers as further evidence of solidity in international commodity markets.

“I must confess some nervousness as the news out of Dubai last week could have undermined confidence, instead we’ve seen a 3.6 percent uplift,” says Lachlan McKenzie, Federated Farmers Dairy chairperson.

“Given this is the last auction of 2009, it has been a rollercoaster year. We’re thankful to end the year in a much better position than we started.

“We really do need this growth to keep ahead of the Kiwi dollar and what’s shaping up to be a pretty poor season production wise.

“Milk volumes are off by a couple of million litres and the peak has come several weeks later than 2008. This is down to a frigid winter that has stunted grass growth so if we’ve got global warming and the ETS is meant to fix, I haven’t seen it this season.

“The latest GDT result makes me doubly determined to tell Dr Brash’s productivity taskforce that they are barking up the wrong tree when it comes to Fonterra’s governance and ownership.

“Farmers are getting on and doing and part of that is the positive way we’ve approached the capital structure review.

“Dr Brash’s suggestion Fonterra would perform better as a private company is frankly, so 1986,” Mr McKenzie concluded.