New Zealand Update
The latest dairy auction saw prices decline by 1.3%. Whole milk which is a key price indicator for the Fonterra payout was down 1.1%.
Fonterra’s payout forecast for season 18/19 is $7/KgMS. The forecast for the 17/18 season now ended is $6.75/KgMS.
New Zealand’s terms of trade fell 1.9% in the last quarter the first fall since September 2016.
The NZ commodity price index rose in May up 1.5% and 5.4% on an annual basis in NZD terms
New Zealand Dollar/Interest Rates
New Zealand Dollar
New Zealand Interest Rates
NZD cash rate is 1.75%.
The NZ 10yr bond rate is 3.00%.
- Gold organic kiwifruit development
- Existing gold kiwifruit conversion to organic
- North Island regional focused impact investment pastoral dairy
- High value organic apples.
The following are trends we are seeing in the market:
- Conventional farmland investment strategy for overseas investors are increasingly difficult to get through OIO.
- This is compounded by an increase in restrictions on input reliant, water quality damaging farming practice. A trend now also driven by government.
- Growth of impact investment interest as a means to improve specific environmental performance in New Zealand whilst generating return. Impact Investment is being seen as a compelling and efficient use of capital for mission driven investors in particular.