Bill Davey mulls over new milling wheat contracts

Water is the source of life and thankfully something we have here in abundance. I would not be farming here if I didn’t have enough of it to use for crop irrigation, that’s for sure.

New Zealand is the second most fortunate country in the world to benefit from a luxurious supply of natural water – Norway being the number one. By all accounts, as I write, Australia, much of the US and northern Europe are all desperate for rain. If these parts of the world do not get enough, then big problems will likely follow.

Milling wheat contracts came out today, $450/t (£200) on the table for a 12.8% protein sample. I have not been tempted to sign as I feel there could be a further rise in values, looking at the bigger picture. I may kick myself later on, but for now I’ll take the punt.

One of our major rural supplies companies is looking for financial assistance and it is interesting to see that the Chinese are keen to be a part of this. I personally feel that this would be good for New Zealand, although many here would strongly disagree. Here we are with the ability to grow protein, in whatever form, or seeds to supply the seemingly insatiable demand from Asia, why not embrace this enviable opportunity?

Maize silage, our last crop to harvest, yielded well with a dry matter yield of 20t/ha – 0.4t/ha above the regional average. This was a bit of a surprise after our generally disappointing harvest.

Store lambs are on fire price wise, but we are sticking to our knitting and, hopefully, will be well rewarded. I just hope we have not reached the point of consumer resistance to this particular form of protein.


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