Downturn casts cloud over Fieldays

Roger Nehoff, of Landpower, was upbeat about business on the first day of the Fieldays at Mystery Creek. Photo / Sarah Ivey

The wet weather didn't bother farmers as the National Agricultural Fieldays got under way yesterday but rain or shine the economic downturn looks like making business harder for those on show.

Waikato Toyota managing director Glenn Carter said he'd be happy to do 75 per cent of last year's business.

"We've probably noticed a lower number of people coming on the site but the ones on the site are all quite keen to do something," Carter said.

"I'm picking a lot more farmers and contractors will be leasing or putting them on hire-purchase so they can just spread the pain out over three years rather than maybe last year they would have written a cheque out."

Fieldays is the biggest agricultural show in the Southern Hemisphere and last year attracted 131,629 visitors to 40ha of exhibitions and demonstrations, with sales of $285 million and an economic impact of $865 million.

Farmers had not been expected to spend as much money this year.

Dairy giant Fonterra - responsible for 25 per cent of national exports in the year to May 2008 - was forecasting a payout to farmers for the 2009/10 season of $4.55 per kg of milksolids, down from a forecast of $5.20 for 2008/09.

Big brand name John Deere - which makes tractors - decided to stay away altogether this year.

The company would review its decision later in the year and look at the option of attending Fieldays in 2010.

Christchurch-based farm machinery importer Landpower Holdings said it cost over $100,000 to be at the show.

Landpower imported farm machinery including tractors, harvesters and spreaders from Europe, which it sold through its retail brand of CLAAS Harvest Centre in New Zealand and Australia. Landpower New Zealand group product manager Roger Nehoff said he thought the rain would keep people away but the traffic had been good.

Landpower group chief executive Richard Wilson said people were conscious of spending money wisely and were shopping around.

"The market will be down, there's no doubt about that, but there's still good business to be done," Wilson said.

The farm machinery market could go up and down quickly, he said.

"The fundamentals are all still there, the world is short of food, the world is growing."

Hawkes Bay beef farmer Craig Campbell said he was probably being a bit more careful, although exhibitors he had been talking to seemed to be doing alright.

"Whether they're lying or not I don't know,' Campbell said.

Those in the dairy industry were probably doing it tougher than the beef farmers this year, he said.

Dairy farmer Neil Bateub, who has a 750-head farm near Huntly, said people were being more careful.

"Farmers I know coming along and having a look, it's a day out but certainly they're not looking for big ticket items or anything like that," Bateub said.

Things would come right long term, he said, but short term there was real pressure on cash flow.

"I guess we've been through it before - it's just a matter of belt tightening, doing what you can and working with your professional advisers and trying to hang in there until things do come right."