NZ sheep, beef farmer confidence drops sharply in latest survey
Sheep and beef farmers compared to dairy farmers have vastly different expectations.
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Rich List
A sharp slump in confidence amongst beef and sheep farmers has tempered dairy farmer optimism in the latest Rabobank confidence survey of New Zealand farmers.
Overall net confidence fell to 25% from 35% in the previous quarter, although it has now been in positive levels for the past nine months.
The number of farmers expecting the rural economy to improve in the next year fell to 39% from 48% in the previous quarter, while 42% expected similar conditions.
Sheep and beef farmer expectations dropped sharply, with almost half expecting their farm businesses to worsen.
Rabobank New Zealand general manager for country banking Hayley Moynihan says this reflects conditions in the sector.
"Lamb prices have reached the seasonal peak, with the lucrative EU and Christmas trade now finished and returns have been about 10 % lower than last year," she says.
"While on the beef side, global prices are under pressure and the beef schedule is likely to worsen in 2017."
If the two different sectors are separated, sheep and beef farmers and dairy farmers have vastly different expectations.
Dairy farmers positive about their business rose to 67% from 57% last quarter, while a net 25% of sheep and beef farmers are pessimistic, a turnaround from the previous quarter's positive net 2% reading.
Farmers in the dairy industry had the highest reading for business optimism since 2013 when the dairy boom was close to its height.
About 450 farmers interviewed by an independent research agency for the survey. It has been conducted since 2003.
(BusinessDesk)
Edwin Mitson
Tue, 06 Dec 2016
Tue, 06 Dec 2016
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NZ sheep, beef farmer confidence drops sharply in latest survey
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