Rural confidence treads water

By Phil Boeyen, ShareChat Business News Editor

Friday 20th April 2001

Confidence in New Zealand's rural sector remains high although it's being tempered by the slowdown in the local economy and the economies of the country's main export markets.

Figures from the latest AC Nielsen/Rabobank rural confidence survey show almost all farmers expect the primary sector to continue performing at its current relatively high levels, or better.

However that outlook is less bullish than in February last year, when 60% of farmers expected performance to improve in the next 12 months.

Rabobank managing director, Bryan Inch, says all signs continue to point to an overall picture of stability after a year in which product prices in most farm categories have risen to the highest levels for some time.

"Once again, we're seeing more farmers predict no change this year in critical factors like agricultural performance, farm spending and gross farm income.

" Meanwhile the number who believe things will actually worsen has yet to reach 10 percent - this time last year that figure was three percent, now it's eight percent, the same as in the last survey."

The survey shows rural confidence has eased the most among sheep farmers.

"What we're starting to see is the current severe drought impacting on the confidence of sheep and beef farmers, especially in the lower North Island and east coast of the South Island. And uncertainty in the dairy sector over the future structure of the industry is impacting on confidence there" says Mr Inch.

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