Beef prices climb as supply contracts in key markets
With production volumes contracting in most major beef-producing regions, global cattle prices have continued to rise across recent months.
The Rabobank Rural Confidence Survey found farmers' expectations for their own business operations had also improved, with the net reading on this measure lifting to +37% from +19% previously.
As with headline confidence, this is the strongest reading on this measure since mid-2017.
Not surprisingly, dairy farmers continue to be the most optimistic of all the sector groupings, with close to 7 in 10 now expecting an improved performance from their own operation across the next 12 months.
Sheep and beef farmers were also markedly more upbeat about the prospects for their own businesses, with 3 in 10 expecting improved performance and only 1 in 10 now expecting performance to worsen.
Rabobank's general manager for country banking, Bruce Weir says horticulturists bucked the upwards trend, recording a lower reading on this measure.
"Growers are still broadly positive about the year ahead for their own operations - with more expecting their own farm business performance to improve than those expecting it to worsen - but they are less optimistic than in September and are now the most pessimistic of all the sector groupings, he said.
"Horticulturalists haven't seen the same recent price revival as their counterparts in the pastoral sectors, and lingering concerns over farm input prices and the outlook for overseas markets appear to be holding sentiment back."
The survey found farmers' investment intentions increased with the net reading on this measure lifting to +18% from +2% previously.
Dairy farmers recorded the strongest investment intentions, increasing to a net reading of +39% (from +21% previously) while investment intentions among sheep and beef farmers also rose (net reading of +2% from -17% last quarter). Horticulturalists' investment intentions were marginally weaker falling to a net reading of -5% (-3% previously).
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
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