Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Dry weather and storm aftermath impact NZ farmer confidence


Dry weather and storm aftermath impact New Zealand farmer confidence

Extreme dry weather and devastating spring storms have hit farmers hard, causing New Zealand rural confidence to decline for the third consecutive quarter.

The latest quarterly Rabobank Rural Confidence Survey, taken earlier this month, shows net farmer confidence has decreased to 11 per cent from 24 per cent in the previous survey undertaken in October.

The number of farmers confident about the economic outlook fell with 29 per cent expecting the agricultural economy to improve over the next 12 months, compared to 37 per cent last quarter’s survey. Those expecting conditions to worsen increased to 18 per cent, from 13 per cent previously.

Rabobank general manager New Zealand Ben Russell said overall farmer confidence had declined due to the dry weather conditions and the flow-on impacts of lamb losses after the September storms.

“It is clear that the impact of a poor spring and a very early and dry start to summer is likely to be the greatest negative impact on the agricultural economy and production over the next year,” Mr Russell said.

“The extreme weather farmers have experienced in recent months has affected their confidence, particularly in the dairy sector.”

Although, optimism remains comparatively higher among dairy, and sheep and beef farmers, with 31 per cent in both sectors expecting an improvement in the economy. However this figure was down from 42 per cent and 38 per cent respectively in the previous survey.

The Rabobank survey did find however that 35 per cent of sheep and beef farmers expect their own farm business to improve in the coming 12 months with 21 per cent expecting performance to worsen.

Over the past three surveys, an increasing proportion of dairy farmers have been expecting their business performance to stay the same, while more sheep and beef farmers are expecting their business performance to improve. Mr Russell said this was likely to at least partly reflect lamb losses from the September storm would see a subsequent drop in lamb production, which would favourably impact prices over the coming season.

http://img.scoop.co.nz/media/pdfs/1012/Rabobank_Rural_Confidence_Survey_media_release_Dec2010.pdf

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Retail: International Websites To Pay GST

New rules would be aimed at imported goods valued at or below $1,000. Customs would retain responsibility for collecting GST on imported parcels valued more than $1,000. More>>

ALSO:

High-Level Advice: PM’s Business Advisory Council Membership Announced

The Prime Minister’s Business Advisory Council brings together a mix of experts, six women and seven men with small to large business experience, from across New Zealand, to provide advice. More>>

ALSO:

Improving: Report Shows New Zealand Air Quality 'Good'

Our air 2018, produced by the Ministry for the Environment and Stats NZ, shows that while some previously known issues persist, progress has been made and levels of some pollutants are declining. More>>

ALSO:

Greenpeace: Govt Extends OMV Exploration Permit

The Government has just granted oil giant OMV a two-year extension to drill in the Great South Basin, despite issuing a ban on new oil and gas exploration permits in April. More>>

ALSO:

Collective Bargaining For Contractors: Working Group's Model For Screen Sector

A recommended model to allow collective bargaining for contractors in the screen sector has today been unveiled by the Government-convened Film Industry Working Group. More>>

ALSO:

Kauri Dieback: DOC Closing Tracks To Protect Trees

The Department of Conservation will close 21 tracks across kauri land to help prevent the spread of kauri dieback. An additional 10 tracks will also be partially closed and the open sections upgraded... More>>