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Home / The Country / Listen

Coronavirus impact on dairy unclear in the EU - Rabobank

The Country
20 Feb, 2020 12:30 AM2 mins to read

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Content brought to you by Rabobank.

While coronavirus is having an impact on New Zealand's dairy industry it is "still difficult to say" how it is affecting the Northern Hemisphere says Rabobank dairy analyst Richard Scheper.

"The Netherlands is highly dependent on exports, so roughly about 65 per cent of all Dutch milk is eventually exported" Scheper told The Country's Jamie Mackay.

"A lot of it remains within the EU actually when you think about it probably two thirds within neighbouring countries. I'd say Germany, Belgium, perhaps France - so yeah, it still could have an impact but we're not so highly dependent on exports as New Zealand is."

Scheper is based in the Netherlands which he said was "definitely a good spot for milk production."

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Milk prices had generally "remained relatively flat" in 2018/19, and two dry summers in a row had contributed to a "general price inflation and higher feed costs" said Scheper.

"There is not much feed around at the moment so some farmers had to buy some extra fodder and concentrate so ... there was quite a bit [of] pressure on the margin so farmers were not really keen on expanding milk production and it wasn't great ... it was not bad, but it also not great. So it was roughly about break-even."

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Also in today's interview: Scheper talked about his experience at the Australian Dairy Conference in Melbourne.

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