A robust start to the year across financial and commodity markets the USD excepted:
It has been a fairly busy first 2 weeks in global markets featuring robust equity and commodity market performances and significant USD weakness.
In a sense the latter is the more important factor for the NZ rural community with offsetting impacts.
MyFarm sees dairy farm investments waning, eyes growth in horticulture.
MyFarm Investments, New Zealand's largest rural investment syndicator, is moving its focus away from its dairy farming origins and expects future growth to come from smaller overlooked investments such as fruit.
A $13 million investment into orchards growing the niche export apple brand RockitTM, has been oversubscribed.
The last auction of the year and this will be a relatively brief commentary as I have a hectic few days ahead and I have less to say!!
Ahead of the last auction I said:
“I expect another flattish to soft auction but I am hoping for something positive”
When in the business of producing investment offers, as is MyFarm, it is critical that we get the forecasts as ‘right as possible’. We can only rely on the information to hand - inevitably the returns in the rural space are dependent on assumptions on three things; production yield, product returns and costs of production.