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Wednesday
Jul042018

"US Cheese Stockpile Highest For 100 Years"

Those who are looking for, and inventing reasons for the 5% drop in the commodity milk powder price in Fontera's auction overnight need look no further that a story in yesterday's Washington Post headed up as above.

The connection is clear as Washington contemplates subsidizing the stockpile as part of its imminent trade war with China. Our exporters stand to become part of the peripheral 'fallout' as this situation develops. Fontera bidders are far better informed that we are as  these situations develop, and will have been well aware of what is happening in the US market.

The story also reports that US dairy farmers are producing record amounts of milk. No wonder Trump is 'beating-up' Trudeau over Canada's unbelievably high dairy tariff that even our Government finds hard to stomach.

Elsewhere, the Post reports a staggering reduction taking place in the consumption of milk, and milk products, inspiring some real effort on the part of farmer organisations to fight substitutes in all their various forms. But these groups are fighting back. Milk has suddenly become a bad word around Washington, and Trump has a 'sleeper' of a problem dealing with it. 

Meanwhile, our guys better start contemplating a reduced, rather than increased pay-out for next season. This is just a 'shot across the bows' to enliven thought processes around the milking shed every second Wednesday morning.

It may even make Murray Valentine think again about his $100m McKenzie Basin investmnet. But I doubt it - he is as stubborn as his Dunedin forbears, - Greenpeace and Forest & Bird are on a 'hiding to nothing' on that score. And if the Government overrules Council, Valentine & Co will take it for tens of millions - that is a certainty.  See the excellent Newsroom article on the subject from 22 January

 

 

 

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