New Zealand farmer confidence lowest in decade

The latest quarterly Rabobank rural confidence survey indicates that New Zealand farmer confidence has fallen to its lowest level in nearly a decade with a concurrent reduction in on-farm investment sentiment following the slump in international dairy prices. According to Ben Russell, Rabobank New Zealand CEO, although the farmgate milk price is higher than last season, it is still below production cost. Russell said, “In response to current pricing signals, we are seeing dairy farmers cut back their supplementary feed and some lowering their stocking rates and maximising available feed to a higher quality, but smaller herd. He added, “In recent months, we have seen the weakness in dairy prices contribute to sluggish growth in the New Zealand economy, weighing on the dollar and increasing expectations of further interest rate cuts.” To read more, click HERE.