$150B farm succession challenge looms for NZ agriculture
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Rabobank general manager of Food & Agribusiness Research Tim Hunt says solid demand in key offshore markets, recent progress in export development and generally tight global supply is likely to bring another good year for New Zealand producers of beef, wool and horticultural products.
"While beef prices have lost some ground in recent months, they remain well above multi-year average levels, and are expected to receive support from a generally tight global market," he says, commenting on the banks Agribusiness Outlook 2016.
"Wool producers will face headwinds from cheap synthetic fibres, but see support from declining production in New Zealand and Australia."
Hunt says the wine industry was looking set for a better year in 2016, with improved climatic conditions likely to underpin an increase in production, average prices holding up well and good momentum for New Zealand product sales in the US and Chinese market.
"The trend in consumer preferences is positive for New Zealand wine, as we see a shift towards higher-priced wine and lighter styles," he says.
