News Milk
Dairy farmers NZ have confidence in the future
Farmers in New Zealand look to the future with more confidence. Dairy farmers in particular are boosting average market sentiment, according to the most recent Rabobank Rural Confidence survey.
The quarterly survey, which was completed earlier this month, shows that farmers' confidence has increased significantly. Where the average farmer's confidence still scored negatively at -23% at the beginning of December last year, it has increased to +10%. The number of agricultural entrepreneurs who expect the agricultural economy to improve in the next 12 months has increased from 16% to 29%. In fact, the number who expect conditions to worsen has fallen from 39% to 19%.
Dairy farmers, sheep farmers and beef farmers, among others, are considerably more optimistic than in the previous quarter. Rising commodity prices were the main factor cited by farmers as the cause of the more optimistic view of the future.
Improved outlook for the dairy sector
Improved outlook for the dairy sector was the main contributor to the overall improved outlook for the agricultural sector. Given the strong upward movement in the prices of dairy products, this is not a strange development. During the year, prices of dairy products on the Global Dairy Traide have increased by more than 20%. Fonterra's payout forecast, which has been increased for the current season, has undoubtedly also played a role in the more positive image of New Zealand dairy farmers.
Chanti Oussoren
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