Australian Farmer Confidence Still Subdued
AUSTRALIA - Confidence levels remain subdued among the nation’s farmers, with difficult global market conditions adding to concerns about high input prices and ongoing dry weather in some areas.Sentiment was stronger among beef and sugar producers, however weaker across all other agricultural sectors this survey, with the biggest decreases observed among sheep, dairy and cotton producers. According to a Rabobank report, the increase in beef producer confidence comes at a time when prices are bucking the general commodity trend and firming.
* "Recent falls in world prices have been balanced by the depreciation of the Australian dollar" |
Rabobank general manager Rural Australia, Peter Knoblanche
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Rabobank general manager Rural Australia, Peter Knoblanche said: “Northern cattle producers have been buoyed by strengthening prices for both slaughter and stores over the last month. Increasing demand for boat trade cattle has taken prices to a new level in North Queensland and the Northern Territory,” Mr Knoblanche said. Sugar remains one of the more pessimistic sectors, however sentiment has strengthened due to an improvement in the cane price.
“Recent falls in world prices have been balanced by the depreciation of the Australian dollar, so improvements that were realised in October have mostly been held over the last month,” Mr Knoblanche noted. Across all other sectors, the dual forces of high input prices and weakening commodity prices are constraining sentiment, the survey showed.
The latest Rabobank Rural Confidence Survey has shown the third successive quarterly decline in Australian farmer sentiment. The survey found 39 per cent of farmers expect the agricultural economy to worsen over the next 12 months, up from 36 per cent with that view in the previous quarter.
The number of farmers expecting conditions to improve in the coming year decreased to 23 per cent, compared with 28 per cent last survey.
TheCattleSite News Desk