Global demand for most of our export commodities has softened recently, ANZ Bank economists tell us. China’s economy has not recovered as quickly as expected, putting downward pressure on prices.
Farmgate returns for most industries are at or above a five-year average, ANZ agricultural economist Susan Kilsby reports. But cost increases in many cases mean that returns are barely covering costs, The rapid rise in interest rates is a major cost that is taking a toll on heavily indebted businesses.
Farmgate prices for milk and meat have softened, although procurement pressures have kept movements in meat schedule prices in check.
For the horticultural sector autumn harvests are now almost in. The sector’s overriding theme is smaller harvests and slightly stronger prices, but overall returns are well down for many growers.
Dairy commodity prices in particular have continued to weaken and the ANZ Bank has lowered its milk price forecast to…
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Utopia, you are standing in it! 
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