Res­i­dents un­wor­ried by GDT drop

Matamata Chronicle - - Rural Delivery - By ABBY BROWN

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.



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