
Retailers manage inventory as increased calf rearing drives unprecedented demand across rural New Zealand.
New Zealand’s rural retail sector continues monitoring calf milk powder inventory levels as strong demand persists throughout the current rearing season, driven by increased numbers of calves being raised by farmers this year. The surge in calf numbers initially created supply challenges, with powder rapidly selling out at retail stores across the country as suppliers struggled to match unprecedented demand. The situation reflects broader shifts in New Zealand’s dairy farming practices where more operations are choosing to retain and rear calves rather than immediately culling or selling newborns.
PGG Wrightson general manager for retail and water Nick Berry acknowledges ongoing supply and demand issues with calf milk powder, while emphasizing that major retailers have implemented management strategies to control inventory allocation. The supply pressures particularly affect smaller-scale rearers who raise limited calf numbers annually and attempt to source powder on an as-needed basis rather than through committed advance orders. However, Berry confirms PGG Wrightson maintains sufficient stock levels to manage these situations without major disruptions to customer needs.
Farmlands cooperative has successfully managed supply pressures through strategic volume controls for committed orders while supporting both traditional shareholders and new customers seeking calf milk powder. General manager for field and technical sales Rob Sharkie reports the cooperative is “in a space we are okay with,” having effectively balanced resource allocation to meet shareholder needs while accommodating non-traditional buyers. This approach demonstrates how agricultural cooperatives can leverage their supply chain management capabilities to navigate seasonal demand spikes while maintaining equitable product distribution.
Farmlands general manager for integrated business planning Siobhan Williamson confirms the cooperative has maintained consistent supply flows while implementing retail channel limits to ensure fair resource allocation across all customer segments. The controlled distribution strategy prevents hoarding and speculation while guaranteeing product availability for legitimate calf rearing operations regardless of farm size or historical purchasing patterns. Importantly, retailers report no supply challenges for meal and solid foods required as calves transition from milk replacer to solid nutrition, indicating supply chain resilience in complementary feed categories.
The calf milk powder demand surge illustrates how seasonal agricultural production cycles can stress specialized input supply chains, particularly when unexpected increases in livestock retention occur across the industry. The situation has prompted major rural retailers to adopt more sophisticated inventory management systems and allocation protocols that balance immediate customer needs against longer-term supply sustainability. As New Zealand’s dairy sector evolves with changing economic conditions and animal welfare considerations that encourage greater calf retention, feed supply chains must adapt to accommodate higher baseline demand for specialized milk replacer products.
Source: Farmers Weekly – Demand still strong for calf milk powder
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