Residents unworried by GDT drop
Matamata locals were not concerned when the Global Dairy Trade (GDT) declined 8.9 per cent on July 15, as they didn’t think it would negatively impact on their local economy.
Local farmer and Federated Farmers Matamata president Stew Wadey was not surprised by the fortnightly auction’s drop.
‘‘Bank economists have been indicating a low dairy price for the 2014/1015 season,’’ he said.
The 8.9 per cent drop did not cause ‘‘panic stations’’ for him. He would only be concerned if the GDT dropped by 15 per cent.
The thought that the world would always need New Zealand’s dairy products kept him confident.
Wadey said the drop reflected that the world was now paying a more realistic price for dairy products after New Zealand Fonterra farmers had enjoyed historically high advanced milk prices. He did not think the current decline would affect local farmers’ spending habits.
He said most farmers used the GDT, which tracked the fortnightly auction of global dairy commodities, as a tool to prudently manage their finances.
Wadey said the market had always been volatile and had its ups and downs, it was just now everyone had access to that information regarding the market’s fluctuations.
Matamata-Piako District Mayor Jan Barnes said local farmers would adopt a steady as she goes mentality. ‘‘Farmers know the market is volatile and are very prudent and astute,’’ she said.
She was not concerned that the decline would have an impact on the local economy. ‘‘We know that when dairy farmers are doing well the community does well and and as a community we do watch what is happening with the markets’ fluctuations, but we are resilient,’’ she said.
The next GDT auction would take place on August 5.