Stuff > Business > Story

Outlook sunny for farmers, says banker

By JON MORGAN - The Dominion Post | Monday, 01 December 2008

Email a Friend | Printable View | Have Your Say

Related Links

Subscribe to Archivestuff

Have your say

New Zealand farmers are well placed to weather the world financial storm, a leading rural banker says.

Short-term challenges are "clouding the horizon" for the global meat market, with almost all stages of the supply chain being affected by the financial crisis, Rabobank senior animal proteins analyst Wendy Voss has told farmers at meetings throughout New Zealand.

There was a lot of uncertainty in the marketplace. Global meat sales had been hit hard as consumers no longer ate out so often and chose cheaper meat. Retail and food service companies were taking a wait-and-see approach and tending to not buy large stocks of meat.

Importers were also affected, both by the economic uncertainty and increased restrictions on access to credit, she said.

"For beef in particular, we're seeing the Russian boom subsiding, while high US beef stock levels in Korea are also creating the potential for volatility in the market."

However, several factors were likely to provide a silver lining for New Zealand producers in the next 12 months.

"The first is the depreciation of the New Zealand dollar against major export market currencies, particularly the US dollar, which will ease some pressure on buyers and exporters," she said.

"The second is that imported beef prices in the United States are expected to remain strong in 2009, as domestic US cow slaughter eases from its current high levels."

For sheepmeat, tightening supply in several regions should help sales of New Zealand lamb in key markets.

Longer-term, the outlook for the New Zealand meat industry remained positive, she said.

Email a Friend | Printable View | Have Your Say

Next Story: Debt collectors want permanent bankruptcy records
- More Business Stories