Steve Bailey, Chairman of the Federated Farmers. PHOTO/ANDREW WARNER
ANZ rural economist Con Williams says that from a regional perspective, the dairy slump has had a flow-on effect to people who provide services or products to dairy farmers,especially the more expensive discretionary items.
"It's been felt more strongly since the end of last year through to now," he said.
"That's just because the cash-flow constraints on farming operations increased substantially through that period and that saw farmers really look at their budgets quite closely. I don't think that focus will change until there's little bit more certainty around that milk fat forecast, relieving the pressure farmers are feeling."
NZ Federated Farmers dairy chairman Steve Bailey confirmed the impact was being felt on everyone involved in supplying the farm sector, down to people who graze young stock and supply feed.
