Posts tagged "Westpac"

China trade not for granted

[07 May/Farmers Weekly] Westpac Senior Economist Anne Boniface reports that New Zealand exporters need to stay aware of the changing tastes and desires of Chinese consumers and that their dominance in both our food and timber industries is bring risks as well as opportunities. Over the past decade since China and NZ signed a free...

Strong farm sector expected to help economy bounce back

[26 February/The Country] In Westpac’s monthly economic overview, the bank’s Chief Economist Dominick Stephens said key drivers of 2019 growth would be a successful farm sector and government spending. Mr Stephens said that although there was a clear economic slowdown in late 2018, he believes that the predicted momentum would be regained this year. ASB...

Challenge ahead for smaller wineries

[11 February/The Country] Rabobank’s latest Global Wine Quarterly Report has raised a warning for New Zealand’s smaller, domestic market wineries which may be finding it more difficult gaining access to distribution channels. Rabobank’s Senior Wine and Horticulture Analyst, Hayden Higgins, said the large 2018 global harvest was starting to create a fundamental shift in the...

China watchers cautious for 2019

[23 January/Farmers Weekly] The economic slowdown in China and damage from its trade war with the United States could impact prices for New Zealand’s major export commodities this year according to analysts. Westpac senior economist Anne Boniface highlighted lamb, noting that Chinese demand for the product appears to have been little affected by the economic...

Export markets crucial for winemakers as Kiwis drink less

[22 January/Stuff] Westpac’s Winemakers Industry Insights Report suggests winemakers are facing tougher times as Kiwis are drinking less wine. The industry has consistently increased the volumes of grapes grown which has enabled the volume of wine produced to increase five fold over volumes at the turn of the century. Paul Clark, Westpac Industry Economist, said...

Foreign buyers put off farms

[28 September/Farmers Weekly] Fewer international people were buying New Zealand farms, which was blamed in part on the 15 percent in the dairy farm price index last year. Westpac Senior Economist, Anne Boniface, said the tightening of rules last year was most noticeably felt in the dairy sector. The tightening of rules for foreign investors...

NZ economy may not be as slow as business confidence suggests – for now

[17 September/Stuff] Statistics New Zealand will release figures on how fast the NZ economy grew in the three months to June 30 later this week. Increased farm production during autumn may have seen strong growth in the quarter, however any disappointment could lead towards an interest rate cut. Despite headlines of weak business confidence and...

$4.44b annual trade balance highest in nine years

[27 August/Otago Daily Times] New Zealand’s trade deficit hit a nine year high of $4.44 billion. This was mainly due to export volumes being stronger than expected. According to Statistics NZ International Statistics Manager, Tehseen Islam, oil prices and a weakened New Zealand dollar were contributing factors, and imports and exports were both up for...

Trade imbalance tops $4 billion in year

[26 July/Otago Daily Times] New Zealand’s annual trade deficit is over $4 billion. This was largely due to a weakening in dairy export values widening the gap. New Zealand’s annual imports increased by $6.02 billion whereas exports rose by $5.65 billion. ASB’s Senior Rural Economist, Nathan Penny, said the balance was weaker than expected and...

More farmers feeling financial pressure from banks

[5 June/NBR] Even with improved dairy market conditions, more farmers were falling under undue pressure from their banks. Federated Farmers Vice-President, Andrew Hoggard, said confidence and satisfaction with banks remained reasonably high, and thought non-financial pressures were also impacting farmers. He cited government climate change policies and the emerging risk of Mycoplasma bovis as factors...

Slowdown ahead for forestry

[21 May/Otago Daily Times] New Zealand’s forestry sectors has had a strong few years with China purchasing as many logs as they could. Times however are expected to change according to Westpac Industry Economist, Paul Clark. He cautioned forestry participants that times were changing as Chinese building activity was expected to ease in the year...

Swaps case comes at uncomfortable time for Kiwi banks

[21 May/NZ Herald] Controversy over how New Zealand lenders sold a complicated financial product to farms have resurfaced during a bad time for the reputation of the Australasian banking sector. It was revealed that former Dargaville farmer, Renie Gibson, is suing Westpac after she lost her farm during the financial crisis. The action remains live. ...

Economy set to gain from 7 per cent drop in NZ dollar in just a month in a month

[21 May/NZ Herald] The New Zealand export sector and general economy looks likely to benefit from the 7 percent fall in the New Zealand Dollar relative to the U.S. dollar. A weaker local currency stimulates export earnings. In the case of Fonterra, the substantially lower NZD would be supportive for farmgate milk prices. ANZ Senior...

NZ farmers eye third straight year of strong dairy prices

[14 May/NZ Herald] Economists said New Zealand dairy prices were set to be $6 plus for the third year in a row. Fonterra was expected to issue its opening forecast for the coming 2018/19 season later this month. While rural lending specialist, Rabobank, said the season would ultimately deliver a $6.40 per kgMS, ANZ Rural...

Economic growth takes a hit due to weather

[16 March/Otago Daily Times] Weather related events over the last three months have affected economic growth. Gross Domestic Product increased by 0.6 percent in the three months ended December which was weaker than most forecasts suggested. Growth was also impacted by the fall in NZD/USD exchange rate. According to Statistics New Zealand, higher activity in...

Dairy prices rise again at latest auction

 [4 May/ Otago Daily Times] Dairy prices have reached their highest level since early February, increasing 3.6 percent in this week’s GlobalDairyTrade auction. Whole milk powder prices increased 5.2 percent and strong demand for milk fat increased anhydrous milk fat and butter prices. Skim milk powder decreased 0.9 percent. Westpac Economist Sarah Drought said dairy...

Forestry sector poised for banner year

 [9 March/ National Business Review] Pruned export logs hit their highest level in almost ten years last month, with log exports seeing a 9 percent increase over the December quarter year on year. ASB Senior Rural Economist Nathan Penny said says local and international demand for New Zealand timber is strong, partially due to increases...

Rural debt appears to have topped $60 billion

 [2 March/ Stuff] Agricultural debt has likely risen above $60 billion over the last few years. Westpac’s manager of corporate agribusiness at Palmerston North, Dave Hutchison, believed the downturn in dairy returns experienced over the past few seasons had contributed to an increase in agricultural debt, noting that a lot of dairy farmers are taking...

Milk makes money in global market

 [9 February/ Otago Daily Times] Although market expectations showed a decline in Fonterra’s overnight global dairy trade auction, overall auction prices rose 1.3 percent. The crucial whole milk powder price rose 1% to in the auction. These gains were due to Chinese demand and global milk shortages, and support prices above the break-even point after...

Meat, wool lack NZ brand: report

 [12 November/ Otago Daily Times] According to Westpac’s latest Industry Insights report, one of the biggest weaknesses in the New Zealand meat and wool sector was the lack of a coherent brand internationally. Report Author, David Normal said each New Zealand exporter was doing their own marketing and focusing on securing export quantities, rather than...

Brexit dairy blip proves modest

 [8 July/ Farmers Weekly] Westpac Senior Economist, Michael Gordon said the 0.4 percent fall in the Global Dairy Trade price index was the best outcome that could have been hoped for after widespread uncertainty in world markets following the British vote to exit the European Union. Mr Gordon explained that although the United Kingdom and...

Fonterra $4.60 milk payout in doubt

[7 January/ Otago Daily Times] Fonterra’s farmgate payout of $4.60 per kilogram of milksolids appears to be in doubt after whole milk prices fell by 4.4 percent at the first GlobalDairyTrade auction of the year. Westpac Senior Economist, Anne Boniface warned that the current El Nino weather pattern could impact New Zealand milk production. Ms...

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...

Confidence takes a hit

[22 September/ Otago Daily Times] Rabobank New Zealand General Manager, Hayley Moynihan said the bank’s rural confidence survey indicated that 53 percent of farmers believed that conditions would worsen over the coming year. Ms Moynihan added that some beef and sheep farmers were becoming more positive, with 27 percent now having an optimistic outlook for...