PKE price increases
Between January and early April 2020, PKE feed spot prices increased by 39 percent. The likely drivers include the increase in local farmer demand for supplementary feed caused by drought, meat processing delays and flooding in Southland. The general uncertainty in the NZD/USD exchange rate is also a likely factor.
The Covid-19 pandemic affected supply for PKE globally and locally, which appears to have heightened risk and therefore prices.
In three of the past four years, prices have peaked in late summer/early autumn. While the peak observed in April was significant, the average price over the 12-month period was similar to previous years. The highest average price (measured over 12 months) was in the 2018-19 year.
In May this year, PKE spot prices dropped to $336. This may be a result of supply concerns easing and rain in parts of the country that have previously been impacted by drought.
PKE pricing report
The DairyNZ PKE pricing report analyses the price movements of PKE this year, in comparison to the last four years.