Rabobank's latest Agribusiness Outlook report says Kiwi farmers are poised to enjoy a fourth consecutive year of profitability in 2020 – with strong returns set to support them through a year of significant transition.
With New Zealand dairy and meat already reaching record prices, "this year is a very good
year to be in livestock" Rabobank's Head of Research Tim Hunt told The Country's Jamie Mackay.
High prices for beef, lamb and dairy were underpinned by good demand conditions and limited supply growths, as well as the effect of African swine fever on China's market.
Hunt admitted his report was written before the coronavirus outbreak in China, and said it would have a different effect on some farmers, compared with the SARS virus in 2003.
"The exposure's much greater. It's spreading much faster and for some niche segments this is going to cause significant damage, at least in the short term".
