ROTORUA - Bay of Plenty farmers are headed for a five-year high in terms of increased production, increased efficiency, expanding overseas markets and better prices in all agriculture-related industries, agricultural analysts say.
"The outlook is good for all pastoral farmers," says Ministry of Agriculture and Forestry senior analyst Phil Journeaux.
"Usually when one sector of the industry is on the rise another is down. It's unusual that all areas of pastoral farming are on the rise all at once. Prices are getting back to what they were in the mid-90s."
MAF presented the forecast to farmers at an Outlook for Agriculture and Forestry seminar, as a result of its work on market forecasts, domestic monitoring of farms, orchards and forests in the area.
For the beef farmer, falling beef production in the United States, rising US beef exports and rising beef consumption in Japan and Korea are expected to lift prices and on-farm returns, he said.
And recovering prices for milk powders, cheese and protein products, because of reduced European Union export subsidy rates, were also expected to continue into 2001.
"Improving world economic growth, especially in Asia, and increased payouts from dairy companies indicates a time of growth for the industry," he said. "The challenge now for the industry is to increase production by 4 per cent."
The forecast for wool prices, although still low, was also looking better, with a stronger demand in the United States and Western Europe than in the past.
"When it comes to productivity New Zealand's agriculture industry is playing more than its part," he said.
Lachlan McKenzie, chairman of Rotorua-Taupo Dairy Farmers of New Zealand, said increased production, the falling dollar and the promise of a $4/kg of milksolids payout to farmers for 2001 was giving farmers confidence.
- NZPA
Five-year high puts grin on Bay farmers' faces
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