Despite what business confidence surveys say, the NZ economy is plugging along steadily and city-dwellers may not have noticed how well the farming industries have been doing.
ANZ economists, surveying the country’s primary industries this week, talked of “elevated returns” at the farm (or orchard) gate.
They say global economic concerns are yet to be felt in the regions, with commodity prices generally very strong at present. Export prices for dairy products have steadily increased with the GDT price index gaining 24% since early December, and the ANZ team is forecasting a $6.40/kg milksolid price for the current season and a $7.30kg/MS price for next season.
They also note returns for export lamb have been very favourable, with China now the largest market for NZ lamb and mutton (though they say a disorderly Brexit could be disruptive for the trade to the UK and European markets). Continue reading “Southland is doing nicely, thank you – and vegans should approve the land-use changes”