Rural confidence trends remarkedly similar across sectors – Allan Barber:
The latest Rabobank Rural Confidence Survey shows the highest level of confidence among all agricultural sectors since the survey started in 2003 which is proof of the remarkable success of New Zealand agriculture and commodity prices. At a time when our dollar is also stronger against almost all, if not all, currencies over the same period, this is a surprising fact that most people would say is at least counterintuitive if not downright impossible.
57% of farmers surveyed now see a positive outlook for the next 12 months, up from 34% in the previous survey, in contrast to only 3% who think things will get worse. A net 41% of sheep and beef farmers see a positive outlook, up from just net 2% in the first 2017 survey, while a net 61% of dairy farmers and 38% of horticulturalists are also bullish. Not surprisingly improving commodity prices are the main reason for this burst in confidence. . .
The global beef complex has been characterised by a series of market disruptions through Q2, according to the Rabobank Beef Quarterly Q2 2017.
Political upheaval in Brazil, a new trade agreement between the US and China, and proposed bans on slaughter in India: All involve the major bovine-exporting nations of the world and have the potential to cause material shifts in global trade.
According to Blake Holgate, Rabobank Analyst Animal Protein: “While US exports continue to perform strongly (and have now reached record levels), reduced supply from Australia and New Zealand, along with potential shocks from Brazil and India, could see the balance in the beef market shift back to a supply-limited market.”. .
Pressure on farmers appears to be easing a little on the back of an improved farming outlook, according to Federated Farmers’ latest Banking Survey undertaken in May by Research First.
The survey shows that 8.5%of farmers reported coming under ‘undue’ pressure from their bank over the past six months, down from 9.6% in the last survey undertaken in November 2016. . .
Canada’s policies depress milk prices – Alexa Cook:
Ten global dairy industry organisations, including one from New Zealand, are fighting for Canada to remove milk policies they say are depressing milk prices.
The Dairy Companies Association of New Zealand (DCANZ) is part of the group, which includes dairy industry leaders from Argentina, Australia, EU, Mexico and the US.
DCANZ said Canada’s recently-implemented ‘Special Milk Class 7’ policies were facilitating the unfair export of highly subsidised Canadian dairy products onto global dairy markets, and at the same time increasing Canada’s barriers to dairy imports. . . .
Business is booming for cafés, dairies, campsites and other enterprises along the length of New Zealand’s national Te Araroa Trail.
More than 550 people have completed the 3,000km trail over the past year, stopping to re-supply in urban centres and rural communities as they walk from Cape Reinga to Bluff.
Te Araroa Trust chair David McGregor said the record number of walkers had contributed an estimated more than $5 million to the economy, with walkers reporting an average spend of between $7,000 and $10,000 throughout their four to five month journey. . .
Conservation Minister Maggie Barry says almost $500,000 extra will be spent on regional projects that target the country’s worst weeds.
“DOC will fund ten regional and district councils to do weed control projects in their communities, especially those that target our annual ‘Dirty Dozen’ weeds – identified as doing the most damage by smothering our natural landscapes and destroying the habitats of our native species,” Ms Barry says.
“The projects focus on weeds such as Old Man’s Beard or Spartina and intensifies efforts to keep them under control or totally eradicate them.” . .
Continued low scallop levels at the top of the South Island have forced a further temporary closure of the Southern Scallop fishery SCA 7, Primary Industries Minister Nathan Guy has announced today.
The 2017/18 season closure affects scallop fisheries in Golden Bay, Tasman Bay and the Marlborough Sounds. It also includes the neighbouring Port Underwood area. . .
New Zealand Wool Services International Limited’s CEO, Mr John Dawson reports that today’s market was down due to a combination of slower demand and a slightly stronger New Zealand dollar.
South Island price levels have now come more into line with their North Island counterparts.
The weighted indicator for the main trading currencies compared to the last sale on the 22nd June was marginally stronger by 0.24 percent. . .