Feds make case for rural bank lending probe
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
Dairy farmers are welcoming the launch of milk price futures and options contracts.
Federated Farmers Dairy chairman Andrew Hoggard says the contracts won't be for everyone, but this will give NZ dairy farmers a risk management tool that makes their businesses less susceptible to large price fluctuations.
"It will put us on a more level playing field with most of our international competitors who already have this sort of tool available to them," says Hoggard.
"Price volatility within a season is extremely difficult to address because production is based on a biological system, so having certainty about the price you will receive at the end of the season will remove a lot of pressure for dairy farmers."
Hoggard urged dairy farmers interested in the NZX milk price and futures options contracts to get professional advice.
"While it will provide farmers with certainty on price there's always someone on the downside when futures are traded. Farmers must get sound independent advice so that they're aware of how this approach changes their risk profile and what this might look like for them at the end of the season."
NZX has formal approval from the Financial Markets Authority and the Reserve Bank of New Zealand for its proposed futuers trading, expected to launch next month.
NZX head of markets Mark Peterson says this is a milestone in commodity risk management for NZ's agricultural sector.
"With 95% of their product sold overseas, NZ dairy farmers are highly exposed to the global dairy market. They have few tools available to help them manage milk price risk which leaves farmers at a disadvantage to their overseas counterparts in the US or Europe, who have access to a wide range of risk management tools.
"Although futures and options contracts will not be suited to everyone, they are a key step towards building a meaningful risk management culture."
Once the contracts are available for trading on NZX's derivatives market, all parties will be required to trade through an NZX broker.
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
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