Fonterra’s exit from Australia ‘a major event’
Fonterra’s impending exit from the Australian dairy industry is a major event but the story doesn’t change too much for farmers.
But it's not all bad news according to the bank's NZ chief executive Todd Charteris.
The survey shows that 40% of farmers were now expecting the performance of the broader agri economy to improve in the year ahead – down from 51% in the previous quarter, while the number expecting conditions to worsen had risen to 12%.
Previously this was 5%.
Charteris said the dip in sentiment this quarter had been driven by lower confidence among dairy farmers.
He says however it’s important to put the latest result into context.
“The confidence readings across the first three quarters of the year have been incredibly high and, while confidence has come back a bit since September, it’s important to note the latest result is still very strong,” he says.
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Charteris says positivity remains the dominant sentiment across the sector with four in ten farmers expecting conditions in the broader agri economy to improve across the next 12 months.
