Dairy an exception to gloom
It has been a tough season so far for sheep, beef and arable farmers, who have been hit hardest by the strong dollar.
Federated Farmers’ 2012/13 MidSeason Farm Confidence Survey revealed any increase in farmer confidence was largely confined to the dairy sector and comes off a low base.
‘‘At the mid-point in what is a tough 2012/13 season, we are seeing some improvement in confidence since the start of this season. That masks a real split between dairy and the rest of pastoral agriculture,’’ said Federated Farmers president Bruce Wills.
He said rising global dairy prices and upward revisions in payout forecasts had helped the dairy sector regain some confidence, but it followed deep pessimism recorded at the start of the season. ‘‘ Then we have the strong kiwi dollar acting like a sea anchor on all export returns.
‘‘Last year was one out of the box, we have to accept it and move on,’’ said Hunterville farmer Shelley Dew-Hopkins.
She said farmers remained confident that the outlook would improve this year.
‘‘The dollar is an issue for all exporters but we have to get smarter to stay ahead of the game.’’
Wills said the survey showed that in the sheep, beef and grain sectors, confidence continued to sink.
‘‘Beef had been treading water but just this week dropped 10 cents per kilogram.
‘‘Sheep farmers are feeling the heat because lamb prices are down around 35 per cent on the same time last year. Wool is also struggling and this has seen meat and fibre farmers become even more pessimistic about their profitability.’’
He said the dry conditions around much of the country meant sheep and beef production was likely to be down.
‘‘Sheep and beef farmers cannot increase production to offset lower prices and the high dollar.’’
The January 2013 survey attracted 973 individual responses.
Checks of farmer confidence are held every July and January.