Dairy prices fall along with confidence of NZ farmers
Due to a surge in currency and fall in dairy prices, confidence of New Zealand farmers plunged for the third consecutive time since November.
As per Rabobank Groep NV, last month 450 farmers were surveyed, out of which 49% hope that the rural economy will fall over the next year.
In an emailed statement, Rabobank's New Zealand unit said that the number of pessimists rose from 33 percent in April and 29 percent in November.
In the past six months, New Zealand's dollar has surged 14 percent against the U. S. currency, thus putting an adverse effect on exports of wool and beef. The ANZ National Bank Ltd.'s monthly index clarifies that world prices for butter, cheese and milk powder fell 49 percent in June from a year earlier.
Presently, only 12% of farmers are optimistic about an improvement in the conditions, while in the April survey, the number was 27%.
Rabobank said: "Dairy farmers were the most pessimistic with 57 percent expecting the rural economy to worsen."
It added that 44% of sheep and beef farmers expect the economy to worsen.
Twenty six percent of farmers hope to invest less on their properties over the next 12 months, and over a third of all farmers say profits will decline this year.
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