Dairy To Lead NZ Agriculture

NEW ZEALAND - The dairy sector is expected to lead New Zealand’s agriculture sector again in 2011, according to a just-released Rabobank report.
calendar icon 27 January 2011
clock icon 1 minute read

Rabobank senior analyst Hayley Moynihan, co-author of the report, expects the dairy industry will enjoy a favourable market environment in 2011 – weather permitting.

“While global commodity prices provide a good level of profitability for most producers, it is clear that high farm business volatility is now being driven by a variety of factors that will require wise management,” Ms Moynihan says.

“The New Zealand dairy industry has enjoyed a relatively consistent period of high returns in 2010 despite uncooperative climatic conditions.”

Ms Moynihan says fundamentals may push up international prices further in early 2011 and are expected to underpin attractive profitability throughout the year.

“Our outlook suggests that good returns are likely to persist, but the impact of the volatile weather will need to be managed well.”

TheCattleSite News Desk

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