Fears but NZ prices holding
31st Oct 08, 8:31am
The world is headed towards a recession which many fear could ankle-tap a recovery in some of our key farm commodities. The ODT reports that while the future may be rocky, so far our key exports are showing some resilience. The financial meltdown could slash demand for beef and lamb by up to 15% in the coming year, but a shortage of lamb and the plummeting exchange rate could negate any financial impact on farmers. M&WNZ economist Con Williams said there were already signs the financial crisis was forcing more people to eat at home rather than in restaurants. Australian wool prices last week plummeted to record lows as tight credit conditions meant buyers could not open letters of credit. Tighter financial conditions could see demand fall for beef and lamb by up to 15%, and while that would affect prices, he could not say by how much.