Lamb returns forecast to remain low
The latest report from ANZ isn’t good news for sheep farmers: lamb returns are forecast to remain low.
The US trade war with China poses a risk for New Zealand, says ANZ’s chief economist, Sharon Zollner.
Speaking at a business forum last week on the Kapiti Coast, she said the risk for NZ is how much the trade war impacts on the Chinese economy. A possible problem for NZ would be its effects on people’s incomes and their ability to pay for farm products.
And this is occurring at the same time as the Chinese economy is slowing, Zollner says.
“Their authorities have lots of levers they can pull that other countries don’t have, but we are now seeing them loosening up on monetary policy in allowing more lending, and on fiscal policy.
“And they have made a tax cut, so that will support their economy in the near term.
“That is the glass-half-full view; the glass-half-empty view is ‘what are they seeing in their economy that they are trying to offset? and what does that mean for NZ?”
Zollner says in trade terms NZ is more tied to the hip of China than ever before. She says while other markets in Asia are opening up, China remains the most important one for NZ.
She points to dairying’s many challenges – M.bovis, the weather and fluctuations in dairy prices, and she notes the fall in last week’s GDT was the ninth in the last twelve auctions.
“So I guess you can call that a trend,” she says.
A huge challenge facing the dairy industry in the long term will be meeting the Productivity Commission’s proposed low emission regime, Zollner says. With the whole agricultural model set to change, including a reduction in cows, that will make for interesting times.
“The dream is sustainable and profitable but there is a lot of road between here and there,” she says.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
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