Tens of thousands of people will head to Hamilton this week for the biggest agribusiness exhibition in the Southern Hemisphere which starts on Wednesday.
National Agricultural Fieldays chairman Warwick Roberts said farmers were cautiously optimistic but it was hard to say at this stage whether they would be spending this
year.
"I know if I were a farmer and I was out there and I was looking at it from the perspective of finances I would say, 'Well, look maybe I won't buy this year, but at least I'll have a jolly good look round to see if I do want something during the year.'
"I think the pressure is still on from the banks, that's my feeling, and they will say, 'We need to make sure our financials are in good order.'
"By the same token their cash flow [for dairy farmers] will look a lot better this coming year so, yeah, they may be able to afford to spend," said Roberts.
Dairy co-operative Fonterra has forecast a payout before retentions for the 2010/11 season of $6.90-$7.10 a kilogram of milksolids, compared with $6.50-$6.60 predicted for this season and an average of $4.88 a kilogram from the previous seven seasons.
Rabobank's Agribusiness Review this month said farmgate lamb prices had increased 7 per cent during the past month but were 10-15 per cent lower than the same period last year.
Farmgate prices for bull beef were up 16 per cent in the North Island and 5 per cent in the South Island during the past month, while manufacturing cow prices rose by 10-25 per cent, Rabobank said.
The theme for Fieldays this year is Innovation for Future Profit.
"It's basically about new ideas, new ways of doing things, being smarter," Roberts said.
"One of the big money earners, particularly in America is pharmaceuticals. Now if we can get into the pharmaceutical market with our milk products then maybe that's our answer."
FIELDAYS
* Mystery Creek Events Centre, Hamilton.
* Biggest agribusiness exhibition in the Southern Hemisphere.
* Almost 1000 exhibitors across 1500 sites.
* 115,000 to 130,000 visitors on average, including from 38 foreign countries.
* $129 million benefit to the Waikato economy from last year.
* $529 million national economic impact from last year.
