Strong Dairy Prices Support the Rural Economy.....
Date
11 November 2022
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The dairy industry remains a critically important driver of the New Zealand economy.
The dairy industry remains a critically important driver of the New Zealand economy. It is pleasing to see a strong final milk price of $7.54 for the 2020-21 season, with an even higher “mid-price” estimate of $8 for the current season. Finance New Zealand is heavily involved in financing farming support industries, and the strong milk price will continue to support all kinds of businesses beyond the actual farm gate. This linked article provides a good overview of the current Fonterra pay out https://www.interest.co.nz/rural-news/112372/fonterras-latest-capital-restructuring-plan-includes-retaining-nzx-listed
Reasonable or improving prices across other key sectors such as red meat, logs and horticulture continue to support other sectors of the provincial economy.
All aspects of the provincial economy are important to Finance New Zealand and we continue to see good levels of both asset finance and general business funding requests that support the likes of rural transport, logistics, manufacturing, agricultural contracting and forestry activities.
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