Commodities bring in less with tight year predicted for sheep and beef farmers
Lower commodities prices will hit farm incomes this year but are unlikely to translate into cheaper visits to the supermarket any time soon.
ANZ Bank rural economist Con Williams says it takes about six to nine months for international commodities to make their presence felt on the supermarket shelves and that recent gains in dairy and beef prices will help to offset price weakness seen early in the year. The good news for consumers is that lamb prices look set to remain low.
The Ministry for Primary Industries said this week that the 2012-13 season was expected to be more subdued for pastoral farm businesses after what was a very strong 2011-12 season for many.
The ministry said the concern for dairy farmers this season was the drop in the expected payout from the co-operative dairy giant, Fonterra.