Markets Markets Markets...Saturday, Jul 15, 2000
Three news items on the news page show the vast game of consequences that inter weaves international
The formation of stronger producer groups is causing new groupings of retail organisations either by
merger or association - probably to the detriment of farmer returns. The formation of the World Wide
Retail Organisation is one more step in the constant struggle between sellers and buyers.
The organised marketing of agricultural production has generally focused on sales cooperation of many
producers, banding together to gain market power to deal with a few retail buyers, to maximise returns
and give stability in the marketplace. It is imperative that farmers continue to seek a more
cohesive marketing and distribution structures to counter the forces that are further organizing
to rebalance their market influence.
An interesting early indication for NZ beef producers shows in the news item on the decision processes
for the rebuilding of the US beef herd. How to reconcile price relationships two years out for
this year's calf crop must temper some consideration of the additional capital required when stocking
for beef production this next season.
Garlic producers in Aussie are feeling an early warning of the agricultural ability of China to disrupt
existing trade patterns. Such a vast country with an enormous population with a high proportion
of low wage agricultural workers has the potential to target labour intensive food product niche
Winter wet in the east and dry in the west of the country - has this pattern set in for the spring?