November brings mixed blessings for New Zealand farmers

November has been a month of highs and lows for the rural sector, with extremes of weather and fortunes.

The ASB has just released its Farmshed Economics report, saying it's been a been a mixture of good and bad news over the month. 

"Similarly, the weather has been a mixed blessing, with rain setting growing conditions up well for summer, but also causing flooding in parts of the South," said ASB Senior Economist Nathan Penny.

For dairy farmers, there has been little good news during the month, with strong New Zealand production proving too much for global markets to absorb. 

"Fortunately, production is relatively soft in the EU, the US and in Australia, nonetheless, given New Zealand's large share of global dairy exports, the mini glut in production is leading prices lower," he said.

As a result, the bank trimmed its 2018/19 milk price forecast by 25 cents to $6.00/kg.

Meanwhile, lamb prices have remained extremely high so far over November.

"While prices have come off the boil, we expect prices to remain at very healthy levels over the remainder of the season," said Mr Penny.

For the beef sector, the report noted supply and demand factors remain delicately balanced.

"Over the next six months or so, we anticipate that strong US production will lead farmgate prices lower," he said.

In comparison, the kiwifruit sector continues to charge ahead. 

"After cracking $2 billion in annual values for the first time last month, export values have pushed on to reach circa $2.2 billion in the 12 months to October, and we expect there's more growth to come."