Friday, 27 December 2024 18:55

Dairy buoyant

Written by  Sudesh Kissun
Rabobank's Bruce Weir says not surprisingly, dairy farmers continue to be the most optimistic of all the sector groupings. Rabobank's Bruce Weir says not surprisingly, dairy farmers continue to be the most optimistic of all the sector groupings.

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).

More like this

Farmer confidence flowing back

Confidence is flowing back into the farming sector on the back of higher dairy and meat prices, easing interest rates and a more farmer-friendly regulatory environment.

Feds, banks lock horns

Major rural lenders are welcoming a call by farmers for the Commerce Commission to investigate their net-zero emissions target.

Rabobank cuts loan rate

Rabobank New Zealand will reduce the variable base rate on its rural loans by 0.5%, effective from 16 October 2024.

Featured

Major shakeup for the NZ science system

The government has announced a major restructuring of the country's seven crown research institutes (CRIs), which will see them merged into three public research organisations (PROs).

Putting theory into practice

Hamish and Rachel Hammond jumped at the chance to put their university learning into practice by taking up a contract milking offer right after graduation.

Workers a big part of the farming business

"We couldn't do this without our team. They are integral to everything." That's the first thing that Te Awamutu dairy farmers Jayson and Stacey Thompson have to say about their team.

Editorial: O Canada

OPINION: The Canadian government's love affair with its lifestyle dairy farmers has got it into trouble once again.

Tough year for UK farmers

Volatile input costs, fluctuating commodity prices, a reduction in direct payments and one of the wettest periods in decades that resulted in a disastrous harvest, have left their mark and many UK farming businesses worse off.

National

New insights into rural fire risk

New student research from the University of Canterbury in partnership with Fire and Emergency New Zealand (FENZ) could improve knowledge…

Embrace mechanical weeding now

Mechanical weeding is exploding in Europe because increasing resistance means they have "run out of herbicide", says Canterbury agronomist Charles…

China still a good option

The ongoing rise of the Chinese middle class will drag up demand for New Zealand products there in the future.

UAE FTA signed

New Zealand’s free trade deal with the United Arab Emirates (UAE) has now been signed.

Machinery & Products

Batten Buddy - cleverly simple

Stopping livestock from escaping their environment is a “must do” for any farmers or landowners and at times can seem…

U10 Pro Highland a step up

A few weeks after driving the CF MOTO U10 Pro ‘entry level’ model, we’ve had a chance to test the…

» Latest Print Issues Online

The Hound

Drunk on power!

OPINION: The end-of-year booze-up at the posh Northern Club in Auckland must have been a beauty, as the legal 'elite'…

Time has come?

OPINION: It divides opinion, but the House has passed the first reading of the Gene Technology Bill.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter