New Zealand: Farmer confidence lifts, but remains fragile

New Zealand
Market & Price Trends
Innovation & Technology
Published Apr 11, 2024

Tridge summary

The latest Rural Confidence Survey from Rabobank in 2024 shows a mixed sentiment among New Zealand farmers. While there's a notable shift towards optimism with fewer farmers expecting the agri-economy to worsen (decreasing from 58% to 38%) and more anticipating improvements (increasing from 11% to 22%), overall confidence remains subdued. A concerning trend is the increase in farmers viewing their operations as unviable, rising from 6% to 9%. Optimism is fueled by favorable government policies, rising commodity prices, and strong international demand for products like horticulture and dairy, highlighted by Fonterra's increased farm gate milk price. However, challenges such as rising input costs, fluctuating commodity prices, increasing interest rates, and geopolitical tensions continue to dampen the mood.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Rabobank’s first Rural Confidence Survey of 2024 has found New Zealand farmer sentiment continues to surge higher – despite overall confidence remaining low. Completed in early March, the survey found while 38% of farmers still expect the performance in the broader agri-economy to worsen in the coming year, this is down from 58% saying the same last quarter. However, the amount expecting conditions to improve went from 11% to 22% and those expecting conditions to remain the same went from 29% to 39%. Broader confidence in the agri-economy rose from -47% to -16%. Rabobank chief executive Todd Charteris says while confidence was still back on what the bank would like to see, it was pleasing to see farmer confidence across all sectors continuing to improve. “Growers’ net reading on this measure rose to +22% and they continue to remain upbeat about the year ahead off the back of a strong season for most horticultural products and robust overseas demand for their products. “Dairy ...
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