Canterbury Spring Rural Comment

Spring rolls along, summer is now in sight, and the election has happened. Despite any changes resulting from the election, on the land it’s business as usual, with the full range of various spring activities in full swing.

Dairy – continuing to hold steady and with some prospect of gain. The political “hot potato” of dairy expansion and water continues to be aired in many cases by biased and ill-informed opponents.
Sheep - The outlook for Lamb is being talked up at the moment. What the long-term outlook is, with the Brexit & the Korean issues, becomes anyone’s guess. These issues could effect the whole economy, and more.
Beef – The market has dipped below the 5 year average for US Bull beef. The live market still appears strong, although the margin for growers who paid high prices for calves in the Autumn may be slim.
Deer - Venison is looking good with prices up on last year, at an all time high. With deer numbers at an all time low, those that have “hung in” and persevered are receiving the benefits.
Wool - is very much a mixed bag. Merino is again on a bit of a roll. Probably not to the levels we have sometimes seen in the past, but hopefully they are at sustainable prices and will stay that way, How crossbred farmers can have long term confidence in wool is doubtful. Stronger wools are having major problems, poorly prepared wools being almost impossible to sell. Mid micron wools are strong and the contracts available seem to be underpinning the market here.
Wine Industry – continues to show steady growth in exports - $1.629 billion to March 2017 - with strong demand for land in Marlborough continuing. Sales of land elsewhere in NZ also happening and new entrants to the market also active. Expansion still occurring in terms of increasing vineyard area.
Kiwifruit – in a strong position with interest and demand steady. Growth in exports continues with sales of $1.67 billion to June 2016.
Manuka Honey – some ripples in the industry and the manuka Definition/testing arguments are not helping. Growth in the industry continues with both numbers of beekeepers and bee hives increasing. After the poor honey flow last year, apiarists are hoping for a decent crop this year.
Timber - is holding the strength it has gained over recent months. Long may it last. At a recent Forestry Real estate seminar recently attended there are predictions of a shortfall in 25 years so planting now is predicted by the experts to be a good investment. Harcourts has formed some strong relationships in the forestry industry and is growing the strength of marketing of this sector of the Real Estate market.
Andy Nurse (021 437 143) Bill Dowle (029 358 3175)
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Harcourts Twiss-Keir Realty Ltd Licensed Agent REAA 2008