Happy New Year to all! As 2009 ticked over into 2010 not so long ago I wonder how many farmers were reminiscing of the good times had last year. I wonder how many of you looked down at that tasty beverage in front of you and muttered to yourself “thank heavens that year has passed”.
In the final wash up, 2009 wasn't quite as bad as the pundits and the media said it might be. It wasn't a boom year, but there were some bright spots (when you look hard enough). Probably the farming group that can feel the most gratitude for how 2009 turned out would be dairy farmers.
When world economies are under stress it is no secret they spend less on exports. In many cases that is true but our dairy industry showed that it can be produce the goods and command a fairly decent price for whole milk powder (WMP) even in the midst of a world financial crisis.
Today, for the first time in 6 months, the WMP price dropped. The 7% decline due to lower demand followed a 95% rise in the price over the last half of 2009. This offset much of the revenue that was inevitably lost due to a stronger Kiwi dollar showing that despite otherwise adverse conditions, the market for dairy products is still able to pull out some winning numbers.
No doubt 2008 will go down as a bumper year. This fact and the knowledge that major economies around the world were being sucked into the fourth level Hell may not have been comforting thoughts.
As we leave last year behind the feeling is different. The 20/20 vision we have looking back allows us to move into the new decade with perhaps a more optimistic feeling. The situation this time last year was vastly different than what we are faced with now. And in the finish, 2009 wasn't as bad as anticipated.
Our assessment of sale reports over the last half of last year, not entirely scientific but useful nonetheless, showed the usual market fluctuations due to weather, demand and seasonal differences. Perhaps last year was more subdued than recent years – I don't have enough data to make such a call. I'm sure farmers aware of their own situations would be able to answer that question with some precision.
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