Right on cue, dairy prices reverse after Labour declares a crisis

Every time Labour declares a crisis in one industry or another the crisis miraculously turns around.

Literally hours after holding a press conference about a crisis in manufacturing there was an independent report that showed manufacturing was booming and has continued to boom. They declared a crisis with Kiwis flocking across the Tasman…lo and behold that crisis too has been reversed.

Last week Labour declared a crisis in the dairy industry based on milk solid prices…and today…

Wholemilk powder prices – which play a big part in the formation of Fonterra’s farmgate milk price – rallied by 19.1 per cent to US$1,856 a tonne at this morning’s GlobalDairyTrade (GDT) auction, raising hopes that prices may finally have turned after declining sharply since March. ?

Overall, the GDT price index gained by 14.8 per cent. The average winning price at the auction was US$1,974 a tonne, compared with US$1815 a tonne at the last sale on August
Whole milk powder prices have fallen sharply since March, when they reached US$3272 a tonne, but futures market pricing in recent days suggested an improvement was in store.

Further out along the price curve, whole milk prices for contract periods from November through to February 2016 all posted double-digit percentage price gains.
Skim milk prices, which have also savagely marked down in recent sales, gained by 8.5 per cent to US1,521 a tonne.

Once again?a crisis has been averted simply by Labour declaring there was a crisis in the first place.

The only thing they haven’t declared a crisis in is their party and their leadership prospects. Let’s hope they don’t twig to that any time soon.

 

– A newspaper

Tagged:
61%