The New Zealand horticulture industry has topped the agricultural optimism rankings

In August, research agency Kantar, commissioned by Rabobank, conducted a survey among 450 New Zealand farmers. It turned out that rural confidence generally remains stable, but rising production costs are overshadowing good commodity prices. Just over half of the participants expect agricultural and economic conditions to remain unchanged this year, 30% forecast an improvement, and 16% a downturn. Horticulturists ranked first in optimism regarding their own business in the last quarter, surpassing representatives of the sheep and beef sector.

Rabobank CEO Todd Charteris noted that the positive sentiment among farmers is driven by rising commodity prices, the situation in overseas markets, and growing demand. A positive level of confidence has been recorded for the ninth consecutive quarter. Those farmers who have a predominantly pessimistic outlook attribute it to rising costs, overseas markets, and drought. Concerns are caused by difficulties due to the conflict in the Middle East, uncertainty regarding costs, and structural changes in the baseline expenditure structure. At the same time, the revenue side of the balance sheet remains reliable for the majority of farmers.

The survey also revealed a division of opinions regarding the upcoming general election: just under half of the participants expect a significant or very significant impact of the election outcome on their business, while 40% believe the impact will be negligible, moderate, or non-existent. About 30% of farmers plan investments this year, primarily in farm infrastructure, new plants, machinery, and livestock.

Additionally, the July survey by Federated Farmers, covering 634 farms, is mentioned. It showed that farmer profits reached a ten-year high: 68% of enterprises turned out to be profitable (led by meat and wool, followed by dairy products), yet every fourth grain producer incurred losses.