NZ exchange launches grass index
The New Zealand Stock Exchange is planning to launch a pasture growth index (PGI) to predict grass growth in the country's dairy regions.
The PGI will measure grass growth potential based on temperature, water balance and sunlight.
It will take a value between 0 and 1, where 1 indicates ideal conditions for grass growth and 0 means no growth potential.
New Zealand industry commentators believe that the index will help predict export prices on the basis that there is a strong link between grass growth and milk prices.
With 90pc of milk production in the form of milk powders, cheese and butter, Kiwi farmers will hope it will help them prepare for price swings based on climate shocks and seasonality shifts.