[1 December/ Otago Daily Times]

The Reserve Bank’s latest Financial Stability Report showed that most dairy farms were expected to be profitable in the 2017 – 2018 season as higher dairy prices continued to support farm incomes. As a result of this, the performance of banks’ dairy loan portfolios had improved. The report showed that banks were reporting fewer loans that needed to be closely monitored and were starting to reduce their provisions against losses on their dairy loans. The number of banks’ dairy loans that were non-performing has decreased from 1.9 percent at the end of 2016 to 1.6 percent.