Editorial: Drought dilemma
OPINION: As of last Thursday, five regions – Taranaki, Northland, Waikato, Horizons and Marlborough-Tasman – had been declared medium-scale adverse events.
ANZ’s managing director commercial and agri, Graham Turley, says the drought is affecting all farmers in some way. No one region in particular stands out to the bank.
Rising costs and reduced revenue caused by the dry conditions have left many out of pocket, nationwide. “As with any serious weather event that impacts dairy and meat production; the effects of the drought won’t just be felt locally, but right through the economy,” Turley says.
He observes that while not all farmers have felt the full extent of the strain, such as those with adequate irrigation, most are struggling. “Clearly cash flow for most has been impacted. Revenue has fallen and expenditure has increased,” he told Dairy News.
Some relief has come for dairy farmers with the recent Fonterra pay-out. Turley believes, “The Fonterra payout is welcome news; it will certainly help to ease the pressure.”
ANZ is responding to farmers’ financial pleas, offering services to provide support where possible. “We are offering farmers a package of options to help meet their short-term cash requirements and re-establish their farms to full performance when conditions improve.”
Temporary overdrafts, access to short term funding and waiving fees are some measures implemented by the bank.
ANZ’s drought response is said to have helped reinforce its position as the CANSTAR Best Agribusiness Bank 2013. The title is granted to the institution that delivers and combines the best product and services to customers.
“We are delighted the new ANZ has taken out the award that was won by The National Bank last year,” says Turley.
CANSTAR New Zealand national manager Derek Bonnar is impressed with the performance of the ANZ. He says, “ANZ’s recent support of drought affected farmers is one example of this.”
