increase font size
ASB senior rural economist Nathan Penny.
Prolonged dry weather will have mixed effects on commodity prices, says ASB senior rural economist Nathan Penny.
For dairy, the drought will put upward pressure on prices as milk production will fall.
“Currently, we forecast 2019-20 production to be flat on 2018-19, but we are reviewing this forecast next week,” says Penny.
The big dry is already depressing lamb prices as farmers bring forward and increase slaughter of stock due to a lack of feed, putting more lamb on the market.
However, Penny says a hot summer can often boost production levels in the horticulture sector: this could see prices fall.
The Government last week declared an adverse event for Northland, where dry weather is causing feed issues for farmers.
Penny says other regions may soon see an official declaration too.
“The Waikato, Bay of Plenty, Taranaki and the northern part of the South Island are also very dry. Moreover, weather forecasts show little sign of short-term rain relief in these areas,” he says.
In terms of commodity price impacts, the drought will have mixed effects by sector. For dairy, For meat prices, the drought is having a depressing impact as farmers bring forward or increase slaughter due to a lack of feed. Already, lamb prices have fallen more than they do normally at this time of year. Meanwhile, a
With much of the North Island experiencing drought this summer and climate change projected to bring drier and hotter conditions, securing New Zealand’s freshwater resilience is vital, according to state-owned GNS Science.
The 'atmospheric river' of rain that swept down the country last week almost completely avoided one of the worst drought-affected regions in the country – coastal Taranaki.
Much-needed rain finally arrived in Northland, giving many farmers breathing space to get themselves back on track for next season.
A global trade war beckons, which is bad news for a small open economy like New Zealand, warns Mark Smith ASB senior economist.
The drought in western parts of the North Island is reaching crisis point with many farmers from Northland to Taranaki having to truck in water and feed for their stock at great expense.
New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.
With much of the North Island experiencing drought this summer and climate change projected to bring drier and hotter conditions, securing New Zealand’s freshwater resilience is vital, according to state-owned GNS Science.
OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.
For Wonky Box co-founder Angus Simms, the decision to open the service to those in rural areas is a personal one.
The golden age of orcharding in West Auckland was recently celebrated at the launch of a book which tells the story of its rise, then retreat in the face of industry change and urban expansion.
Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s New Zealand Veterinary Association (NZVA) awards. As part of a series looking at this year’s rural winners, Leo Argent talked with Ginny Dodunski, winner of the Veterinary Impact Award for raising the profile of the Wormwise programme.
OPINION: The appendage swinging contest between the US and China continues, with China hitting back with a new rate of…
OPINION: The irony of President Trump’s tariff obsession is that the worst damage may be done to his own people.
