NZ Dairy industry in crisis

NZ dairy farmers have been hit hard with dairy prices slumping 55 per cent farmers are really struggling

NAB released in the report today the exposure to the NZ dairy industry has increased as a result with problem loans

An extract from the NAB report

Global dairy prices have slumped 55 percent since early 2014, adding pressure on New Zealand farmers, the majority of whom are already operating below break-even.

"We assume that dairy prices will not recover significantly in the next couple of years. Problem loans are thus likely to increase further," said Moody's Investors Service senior vice president Sovereign Risk Group Marie Diron, adding that the pressure on asset quality "will be off a very strong base."

Dairy products make up around a quarter of New Zealand's total exports and the industry accounts for just under 10 percent of total borrowing in the country.


How will this affect a2m with cash strapped farmers in NZ facing foreclosure will this in the long term affect the supply chain with problem loans amongst dairy farmers on the increase

This is why i believe that hype an expectation is all people are focusing on this is a serious problem for dairy farmers

Dairy farmers globally are been affected by the rout in dairy prices

So will this impact future earnings

I will be interested to see if they mention the crisis that is engulfing the NZ Dairy farmers

Will margins have to be squeezed ??