Nimble New Zealand exporters finding opportunity amid shifting trade terms
Global trade wars and uncertain tariff regimes could play into the hands of many New Zealand exporters, according to Gareth Coleman ANZ’s Head of Trade & Supply Chain.
Grey clouds still hang over the global economy, says Rabobank in its July Agribusiness review for New Zealand and Australia.
Measures announced at a European Union summit held in June to combat the debt crisis brought some calm to global markets. However, it was not sufficient enough to counter a run of weak economic data releases.
China, the eurozone and United Kingdom (UK) have all loosened monetary policy in a bid to stimulate growth. The Reserve Bank of Australia (RBA) held the official cash rate steady at the latest meeting preferring to monitor the subdued international outlook, a trend mirrored in New Zealand.
Currency markets will remain sensitive to sudden shifts in global risk sentiment.
Weatherwise in New Zealand, June was abnormally dry in many parts of North Island, with the some areas experiencing the driest June on record.
In contrast, it was extremely wet in parts of the South Island, where rainfall was twice the normal levels for June.
Local beef prices improved through June for both New Zealand and Australian producers. Latest trade figures for both sectors show that the respective strong currencies against the USD have negatively impacted export competitiveness, with trade volumes down year-to-date.
Dairy commodity prices showed some signs of steadiness through June. Global markets are continuing to try and absorb exceptional production volumes trough recent seasonal flushes by the key regions. While evidence continues to mount that the market has reached a bottom, any meaningful recovery is still unlikely short-term.
Global fertiliser markets are in period of transition. A shift from the Northern Hemisphere spring planting program to key planting cycle in the Asia and South America is underway. This has seen markets remain relatively steady with trading activity seasonally low.
Global wheat markets staged a strong rally in June, driven by a surfacing of supply side risks to production of some key crops. Escalating concerns about corn and soybean crops in the US supported prices with hot and dry conditions threatening yield potential. Rabobank's latest forecast for Australia's 2012/13 wheat crop is 24.5 million tonne.
Environment Southland's catchment improvement funding is once again available for innovative landowners in need of a boost to get their project going.
The team meeting at the Culverden Hotel was relaxed and open, despite being in the middle of calving when stress levels are at peak levels, especially in bitterly cold and wet conditions like today.
A comment by outspoken academic Dr Mike Joy suggesting that dairy industry leaders should be hanged for nitrate contamination of drinking/groundwater has enraged farmers.
OPINION: The phasing out of copper network from communications is understandable.
Driven by a lifelong passion for animals, Amy Toughey's journey from juggling three jobs with full-time study to working on cutting-edge dairy research trials shows what happens when hard work meets opportunity - and she's only just getting started.
The New Zealand Fish & Game Council has announced a leadership change in an effort to provide strategic direction for the sector and support the implementation of proposed legislative changes.