Posts tagged "BNZ"

Economists concerned by risk of mycoplasma bovis

[7 June/The Country] According to economists, economic risks associated with Mycoplasma bovis were rising. Last week, the eradication attempt was announced at a cost of $886 million, and the slaughter of 126,000 cattle. BNZ Senior Economist, Doug Steel, said there was more to it than just the initial impact on production from culling cows. Costs...

Get to Market Series: Food and Beverage Commercialisation and Export Event

[BNZ Media Release] BNZ, The FoodBowl and Plant & Food Research are hosting their fifth Get to Market Series event. Attendees will be able to network with suppliers, customers and specialists in the Food and Beverage industry and discover more about how The FoodBowl, Plant & Food Research and the Bank of New Zealand can...

Manawatū bankers say a change of Government means no change to financials

 [11 September/ Stuff] BNZ’s Agri-Team Leader in Manawatū Brian Henderson said whether National or Labour wins the election will make little difference to banks and financial institutions, and BNZs unofficial view is the economy has continued to grow even during the dairy downturn. Forestry and tourism pulled the economy up. Mr Henderson said tourism was...

Firm prices sector-wide a good sign

 [6 June/ Otago Daily Times] BNZ Senior Economist Doug Steel said beef, dairy, forestry, horticulture, lamb and venison are all enjoying high prices above their respective five-year averages. Dairy prices rose strongly over the past year, and horticulture remained strong. ASB Chief Economist Nick Tuffley said Fonterra’s 2017-18 opening milk price of $6.50 per kg...

A $7 payout on the cards?

[23 May/ Rural News Group] While current GDT price increases are pointing towards a $7 per kilogram milk payout for the new season, Senior Economist at the BNZ, Doug Steel, says he would not expect Fonterra to announce such a price this week as it is very early days for predicting how the 2017/18 season...

Donald Trump’s trade stance is serious for NZ

[10 November/ NZ Herald] Reserve Bank Governor, Graeme Wheeler said United States President Elect, Donald Trump’s stance on trade could be serious for New Zealand at a time when countries were putting up more barriers. Mr Wheeler added that the United States needed to think very seriously about how the Trans Pacific Partnership could make...

‘Yes but’ to strong dairy prices

 [7 November/ NZ Farmers Weekly] BNZ Senior Economist, Doug Steel said farmers should be cautious over future milk prices as they were quite high relative to other commodities. Mr Steel explained that oil prices remained under USD 50 a barrel despite the historic correlation between global milk prices and oil prices. Mr Steel added that...

Farmers keeping the bankers happy

[20 June/ Farmers Weekly] BNZ National Agribusiness Manager, Scott Wishart said the extent by which farmers were cutting costs was an encouraging sign for the economy. Mr Wishart added that it was good to see farmers budgeting to break even, after needing an extra $1 per kilogram of milk solids to break even last year....

BNZ invests in farm accounting software

[12 February/ Rural News] BNZ has announced plans to make a 17 percent investment in cloud-based farm accounting software provider, Figured Ltd. Figured is an online accounting tool that makes it easier for farmers to work with their accountants, farm consultants, and rural bankers. BNZ Head of Agribusiness, John Janssen said the investment was another...

Lamb price expected to be down

 [1 December/ Otago Daily Times] BNZ has predicted that the average farm-gate lamb price is to fall a few percent lower than last season’s. BNZ said that prices were around 27 percent lower than last year as they adjusted to balance demand with strong supply from major exporting countries. The price decline also outpaced the...

Five biggest rural lenders to conduct ‘stress test’

[11 November/ NZ Herald] The Reserve Bank has asked New Zealand’s top five rural lenders, ANZ, ASB, BNZ, Rabobank and Westpac, to conduct stress tests of their exposure to dairy farm debt. The central bank has also encouraged the five banks to set aside provisions to reflect a likely increase in problem loans to the...

Banks not forcing farmers out

[31 August/ NZ Farmers Weekly] BNZ Northland Senior Partner, Sam Johnson said that rural bankers have approved cashflow forecasts for the majority of their clients, with bankers agreeing to working finance for the season. Mr Johnson said banks and farmers have agreed milestones which would be discussed again before Christmas to ensure debt levels were...

BNZ tips dairy price recovery

[23 July/ NZ Herald] BNZ has lowered its 2015/16 milk price forecast for Fonterra to $3.80 per kilogram of milk solids from its previous forecast of $4.30. BNZ believed that while the lower New Zealand dollar provided broad support, prices will remain weak in the short term due to over-supply, with improvement being seen within...

Farm mortgagee sales climbing

[17 July/ Radio NZ Rural] According to Corelogic, the amount of farm mortgagee sales has increased to 19 sales in the past three months. Rural Debt Negotiator, Janette Walker said the government needed to introduce debt mediation legislation, as around 40 percent of dairy farmers will not break even this year. Farming Consultant, Doug Avery...

Wairoa scoops pool at Maori Farming Awards [30 May/ Rural News]

The winner of the 2015 Ahuwhenua Trophy, for the top Maori sheep and beef farm, has been awarded to Mangaroa Station, Wairoa owned by Bart and Nukuhia Hadfield. BNZ Head of Agribusiness, John Janssen said the standard of the finalists was outstanding, and highlighted how Maori agribusiness has come of age, with some Maori farmers...

Dairy farmers slashing costs will still be short [29 May/ Business Day: NZ Farmer]

Dairy NZ estimated that costs for farmers in Canterbury will be around $1 per kilogram more than the revenue they received in the new 2015/16 season, equating to around $300,000 in extra costs for the average farmer. DairyNZ Chief Executive, Tim Mackle said the forecasted Fonterra payout of $5.25 per kilogram of milk solids is...

Predicting the forecast a tough task for co-op [26 May/ Dairy News]

BNZ Senior Economist, Doug Steel estimated that a payout of around $5 per kilogram of milksolids will be announced by Fonterra as its opening forecast for the new season. Mr Steel said it was difficult to predict the actual forecasted payout as it comes down to Fonterra’s view on where prices will go over the...

Terms of trade picked to fall further

[2 December/ NZ Herald] The terms of trade declined 4.4 percent in the September quarter, led by a 4.5 percent drop in export prices which was offset by a 0.1 percent decline in import prices. Around 80% of the fall can be attributed to an 11 percent drop in dairy prices, although less than a...

Wilson coy on Fonterra payout

[28 November/ NZ Farmers Weekly] Fonterra Co-operative Group chairman, John Wilson speaking at the KPMG BNZ Rural Business update reminded farmers and industry professionals that prices had been as low as current levels in 2012. He mentioned Fonterra’s strategy of increasing milk payout and dividend return through its V3 strategy for growth of volume, value...

Disbelief as milk forecast drops again

[11 November/ NZ Farmer] New Zealand’s second biggest milk processor, Open Country Dairy has told farmers to prepare for a reduced payout in the $4.70 to $4.90 range, while Canterbury processor, Synlait is forecasting a payout of $5.00 per kilogram. On a trade-weighted basis, the GlobalDairyTrade price index dropped 0.3 percent, with volume reducing from...

Milk prices take another hit

[7 August/ Otago Daily Times] The latest GlobalDairyTrade auction showed an 8.4 percent decline, with whole milk powder prices declining 11.5 percent at the latest event. Prices have now declined 40 percent since February. BNZ currency strategist, Raiko Shareef said that the current prices and the strength of the New Zealand dollar suggests a payout...

World dairy prices plunge overnight

[1 July/ NZ Herald] Fonterra Co-operative Group’s $7.00 per kilogram farmgate milk price for 2014/15 is under pressure following the 4.9 percent drop in milk prices to USD 3,595 per tonne at the GlobalDairyTrade auction. Despite the co-operative reducing the volume at auction, whole milk powder dropped 5.4 percent to USD 3,459 per tonne. Bank...

More rate rises coming

 [10 March/ New Zealand Farmers Weekly] BNZ senior economist, Doug Steel said that most farm debt consisted of floating mortgage rates and they were impacted by the OCR increase from 2.50% to 2.75%, with the possibility of interest rates rising from the 5.6-5.8% average to almost 8.0% over the next three years, if RBNZ’s current...

NZ’s economy making serious traction

 [26 November/ Business Day] Senior Economist for BNZ Doug Steel has highlighted growth in Waikato farm building consents as being a pointer to how the New Zealand economy is standing out from the global crowd. In the most recent period, building consents were valued at $52 million, compared to $34 million in the previous period....