Southland is doing nicely, thank you – and vegans should approve the land-use changes

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).