Monday, 06 April 2020 10:31

Rural sector vital to recovery, despite confidence dip

Written by  David Anderson
Rabobank New Zealand chief executive Todd Charteris. Rabobank New Zealand chief executive Todd Charteris.

COVID-19 is negatively impacting New Zealand’s rural sector confidence.

The declining confidence comes as the country’s primary industries prepare to shoulder some of the heavy lifting for economic and social recovery, claims specialist rural bank Rabobank.

New Zealand chief executive Todd Charteris says the bank’s latest rural confidence survey shines a light on the psyche of farmers at a critical time for the nation.

“The food and agri sectors will be crucial in helping to rebuild the New Zealand economy and Rabobank continues to have a strong positive long-term view of the sector outlook,” he says. 

“Having said that, our latest survey shows farmer sentiment has slipped since late 2019.”

After climbing strongly in the December 2019 quarter, net farmer confidence in the broader agricultural economy fell to -44% in the March quarter – down from -12 per cent previously.

The survey found a decrease in the number of farmers expecting agricultural economic conditions to improve in the coming 12 months (down to 12% from 21% last quarter). There were also more farmers expecting conditions to worsen (56% from 33% previously). 

The number of farmers expecting the performance of the agricultural economy to stay the same fell to 29% from 44% last quarter. Among farmers with a negative outlook, the majority cited COVID-19 as a key factor for holding this view.

Charteris says during the period the survey was open – between March 3 and 18 – farmer concerns are likely to have been centred largely on the impact COVID-19 was having on Chinese demand for New Zealand agricultural products and the potential for the virus to result in similar demand falls in other global markets.

“Understandably this had a marked impact on farmer confidence – particularly in sheep and beef due to uncertainty over market access.” 

More like this

Get ready for the ‘now’ norm

Get prepared for a ‘Now Normal’ future, says Ian Proudfoot – Global Head of Agribusiness for KPMG – discussing the likely effects of COVID-19 in the months to come.

Get ready for the ‘now’ norm

Get prepared for a ‘Now Normal’ future, says Ian Proudfoot – Global Head of Agribusiness for KPMG – discussing the likely effects of COVID-19 in the months to come.

Times will get better for deer sector

While the deer industry faces several challenges in the short term, there will be a strong rebound in New Zealand venison sales once global demand recovers.

Times will get better for deer sector

While the deer industry faces several challenges in the short term, there will be a strong rebound in New Zealand venison sales once global demand recovers.

Featured

Get ready for the ‘now’ norm

Get prepared for a ‘Now Normal’ future, says Ian Proudfoot – Global Head of Agribusiness for KPMG – discussing the likely effects of COVID-19 in the months to come.

 

Northland farmers count the costs

Northland farmers are starting to count the cost of one of the most severe droughts to hit the region as the cost of feed and lower prices for stock are the order of the day.

Times will get better for deer sector

While the deer industry faces several challenges in the short term, there will be a strong rebound in New Zealand venison sales once global demand recovers.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Dirty water

The Hound understands that Federated Farmers has been cut out of the information loop, for the past year, on the…

Who’s paying?

Your canine crusader noticed a full-page ad recently run in a farming paper calling on meat companies SFF and Alliance…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter

Popular Reads