Dealers in the agricultural and heavy diesel sector should continue to enjoy good trading in 2014 from the ‘rivers of white gold’ flowing in from the dairy boom.
Federated Farmers dairy industry group chairman Willy Leferink recently commented to the National Business Review that dairy prices are still looking very good and that “We are living in unprecedented times.
“Furthermore, if the NZ dollar drops a little through 2014, it will have further benefit to the industry,” he says.
MBD Energy agribusiness and government relations director Tony St Clair told NBR that he was fairly bullish about all protein exports.
“I think we still have a huge development role, particularly with the growing affluence in China,” he says.
“There is an old saying: there is nothing more dangerous than a farmer with green grass and a chequebook. Unfortunately I think that’s very valid at present,” St Clair says.
According to NBR, National MP Shane Ardern has a similarly bullish view of the dairy industry prospects this year. Aside from being a Taranaki dairy farmer for more than 30 years, he is also chairman of the primary production select committee and the national agriculture caucus committee.
“I would say the future of the dairy industry in 2014 and beyond is stronger and more promising than it’s ever been in the last 30 years,” he begins.
“That said, I suspect there will be a slight easing of prices short-term in 2014, because they reached such heights in 2013, and that level is probably unsustainable.”
