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

 

Down, but not out

Down, but not out

Dairy prices end 2014 low, in contrast to where they started the year

Beef prices end 2014 still flying high


The Reserve Bank delivers an early Christmas present

It’s a mixed end to 2014 according to the latest ASB Farmshed Economics Report, with dairy prices low compared to the high prices at the start of the year.

“Beef prices, on the other hand, are providing farmers with some festive joy and are currently 23 percent higher than last Christmas,” explains ASB Rural Economist Nathan Penny. “Lamb prices peaked ahead of the previous two seasons this year, although prices have softened recently.”

Meanwhile, the Reserve Bank has delivered an early Christmas present in the form of a toned-down interest rate outlook. “We are in for a lengthy period of low interest rates,” says Mr Penny.

In this quarter’s special edition of Farmshed Economics we take a look at the dairy’s prospects over the seasons ahead.

“The dairy sector posted its best season ever in 2013/14, with a record milk price bolstered by record production. But 2014/15 is shaping up as the mirror opposite.”

“That said, we don’t expect the milk price to stay in the doldrums beyond this season. Slower milk production over 2015 will give time for demand to catch up to supply.”

“After hitting a forecast low of $4.70/kg this season, we expect the milk price to rebound to $6.00/kg the following season. We also reiterate that the long-run prospects for dairy remain solid.”

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Energy Resources Aotearoa: Doubling Of Coal Use Shows Need For Local Natural Gas

New figures showing a near doubling of coal-fired electricity generation highlight New Zealand’s energy shortage and the need for natural gas as a lower carbon alternative, according to Energy Resources Aotearoa... More>>


E Tu: ‘Sense Of Mourning’ As Norske Skog Mill Set To Close

Workers at Norske Skog’s Tasman Mill now know they’ll be losing their jobs in little over a month’s time.
On Wednesday afternoon, workers were told the mill will be stopping production from the end of June... More>>




Stats NZ: Card Spending Sees Strong Growth In May

Seasonally adjusted card spending rose by $189 million (2.3 percent) between April 2021 and May 2021, Stats NZ said today.
Spending rose across all industries for the first time since New Zealand moved to level 1 in June 2020... More>>




Auction: 1.4 Million In Rare Vintage Watches, Gems, Jewels & Diamonds Go Under The Hammer At Webb’s

An auction event showcasing over 1.4 Million dollars in rare jewels, gems, diamonds and vintage watches is due to take place this Sunday by Auckland based auction house Webb’s... More>>

Catalist: NZ’s New SME Stock Exchange, Gets Licence To Go Public

New Zealand has a new stock exchange – designed specifically for small and medium-sized businesses (SMEs) to raise up to $20 million a year from the public.
Called Catalist, the exchange has already been successfully working the private investment sector.... More>>

E-Commerce: Over 40% Of Those Engaged In The Bitcoin Community Are Millennials

Bitcoin has emerged to be a popular topic among millennials with digital currency increasingly being viewed as a potential source of creating wealth through investments. The interest in bitcoin by millennials signals the role this age group plays in the possible realization of the digital currency’s mass adoption... More>>