A summary of the present economic conditions, the exchange rate, and livestock numbers in the mid season update by M&WNZ. This is followed up by an in depth look at individual products and market indicators at various exchange rate levels. Grim reading with indicative wool prices, but lamb prices show a substantial lift and cattle prices although uncertain, look reasonable. As always farmers are in the hands of the climate and for some areas in the east, below average rainfall is predicted. The report has a summary of farm profit at different exchange rates and regional groupings. Once again poor farm profit before tax is reported ,esecially when personal drawings tax and debt payments and purchase of capital items are to be funded out of this surplus. Once again its too little to fund a reasonable return on investment, especially for those with substantial debt.
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