New Zealand: Cream still rising for farmers, exporters

Dairy, lamb, beef and log prices at the farm gate are all in the highest quintile relative to the 10-year averages as farmers, orchardists and foresters prepare for spring, the latest ANZ Agri-Focus newsletter says. Under the headline Springing into Action, agriculture economist Susan Kilsby and chief economist Sharon Zollner say global commodity prices remain high, but whole milk powder and logs are trending down. In contrast, returns for meat and wool are still rising. Food security concerns are playing a part, they say. “Trade tensions, combined with the disarray in the shipping industry, are prompting buyers to build buffer stocks to mitigate risks of not being able to source goods when required,” the ANZ economists said. “This has created additional demand that won’t be sustained once sufficient stocks are at hand.” Additional downward pressure on farm gate returns comes from the rising value of the New Zealand dollar, forecast to be US75c by early next year and the ...