Tuesday, 08 October 2024 11:55

Will China stimulus package boost NZ exports?

Written by  Staff Reporters
Emma Higgins, Rabobank Emma Higgins, Rabobank

The Chinese Government has unveiled a major stimulus package to revive flagging economic growth, so will this help New Zealand food and fibre exports to the lucrative market?

Rabobank dairy analyst Emma Higgins believes it's still early days.

"We will need to see fundamental positive change to income for consumers and also increase confidence within China before we can get excited about this stimulus package having a significant impact on our food and fibre exports," she told Rural News.

"These announcements are a step in the right direction for these fundamentals to change, however, it's early days."

Adopting a suite of measures to reduce borrowing costs, the People's Bank of China cut interest rates on existing mortgages by 0.5 percentage points and supported new lending by reducing the level of reserve banks must set aside before making loans.

Last week's Global Dairy Trade (GDT) auction saw whole milk powder prices rise 3% to US$3559/tonne, its highest average price on the platform for the past 24 months.

NZ dairy analyst Rosalind Crickett says future prices could be linked to the Chinese stimulus package.


 Read More


"Looking ahead, there are a variety of factors at play to keep an eye on, particularly with the economic stimulus efforts by the Chinese government and the implications it will have on its domestic production and imports."

 

 

More like this

Changing global trade ties

OPINION: I recently returned from a market visit overseas, including the United Kingdom and Europe. These are critical, historically important and increasingly high value markets for our red meat exports.

Editorial: Winston's words of wisdom

OPINION: Foreign policy is a real strength of Winston Peter and this is recognised by Ministry for Foreign Affairs and Trade (MFAT) officials who, so the story goes, wanted him in his present role because of his experience in that field.

Featured

LIC Space folds for good

Farmer co-operative LIC has closed its satellite-backed pasture measurement platform – Space.

Editorial: Time for common sense

OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).

National

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Are they serious?

OPINION: The Greens aren’t serious people when it comes to the economy, so let’s not spend too much on their…

A hurry up!

OPINION: PM Chris Luxon is getting pinged lately for rolling out the old 'we're still a new government' line when…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter