Dairy exports up, earnings down
Dairy
farmers are increasing their production capability, but the receipts from
increased export volumes have shrunk over the past year, according to two sets
of statistics.
First,
official figures show sheep numbers have continued to fall, but dairy cow
numbers are rising. Total dairy cattle hit a record high of 5.8m in the year to
June 2009, four percent higher than in
2008 and up 76 percent from 3.3m in 1989.
The milking
herd of 4.6m cows and heifers in milk or in calf was 250,000 larger than in
2008 – one for every New Zealander.
The
expansion was due to both dairy conversions and increases in existing herds,
Statistics New Zealand said.
Exports of
$8.9b of dairy products in the year to January 31 accounted for 22 percent of
the country’s total exports.
But
overseas merchandise trade data show milkpowder, butter and cheese receipts
declined 12 percent in the year to January 31, down from $9.2b a year earlier,
to $8.1b. Casein and caseinate receipts fell from $1.03b to $808m, a 27 percent
decline.
January
better
January
monthly trade figures are better, although the improvement (a surplus of $269m,
equal to 8.5 percent of exports), owes more to shrinking imports. Total
merchandise exports were valued at $3.2b during the month (down $19m from
January last year) but imports were
$2.9b, down $390m.
Casein and
caseinates were among commodities that recorded a large decline (down 61
percent from $145m in January last year to $57m in January this year).
But
milkpowder, butter, and cheese recorded a large rise from $848m to $951m, led
by unsweetened whole milkpowder (WMP), up $98m, a 36.6 percent increase,
resulting from 54 percent more exported.
US down
The US
market showed the largest decrease in the value of monthly exports, down $213m
(48 percent). Dairy products led the drop – exports of casein and caseinates
were down $81m and natural milk constituents down $58m.
But exports
to China increased by $83m (30.1 percent), driven by unsweetened WMP and rough
pinus radiata logs.
Exports of
total merchandise goods for the three months ended January 2010 were valued at
$9.6b, a fall of $1.1b (9.9 percent) from the same period to January last year.
Milkpowder, butter, and cheese, down $308m (11.0 percent), led declines, but
the biggest drops came from natural milk constituents and cheddar cheese.
Casein and
caseinates had the next largest decrease, down $241m (59.9 percent), driven by
lower prices and quantities.
According
to the Reserve Bank's trade weighted index (TWI), the New Zealand dollar was
2.2 percent higher in January than in December 2009, and 20.4 percent higher
compared with January last year.
The New
Zealand dollar eased relative to most major partners during the month, though
the euro was unchanged.
The volume of
manufacturing sales rose 3.1 percent in the December quarter, after falling 1.7
percent to a nine-year low in the September 2009 quarter.
Good
quarter
The volume
of sales for the meat and dairy product manufacturing industry rose 4.6 percent
in the quarter, following a fall of 6.1 percent in the previous quarter.
Milkpowder,
butter, and cheese export quantities fell 6.1 percent while meat and edible
offal export quantities rose 14.5 percent.
Despite the
4.6 percent rise in volume, the value of sales fell 2.1 percent in the December
quarter because of price decreases, following a fall of 15.4 percent in the
September quarter.
The Reserve
Bank was warning exporters at the end of the December quarter about the higher
exchange rate, but it has bounced since then. On the TWI, it fell 0.9 percent
in December (but was 17.3 percent higher than a year earlier), gained 2.3
percent in January, then fell 2.3 percent in February.
Against the
US dollar, it eased from an average US71.62c in December to US68.3c by February 9 then rose to almost US70c at the
end of February.
SHADED BOX
hdg...
Where
16,000 cows went
If cattle
numbers were counted again today, the statisticians might find a few missing.
The TH Milk
Joint Stock Company in the central province of Nghe An, Vietnam, received
16,000 dairy cows shipped from New Zealand on February 27, the first shipment
under a concentrated breeding project in the Nghia Dan district, according to a
local newspaper report.
The US$350
million project aims to develop an international-standard dairy industry based
on advanced Israeli technology and management.
The project
is expected to meet 30 percent of domestic consumption. It will develop 45,000
cows, including 20,000 dairy cows, and build a milk processing factory handling
500 tonnes/day by 2012.
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