Andrew's blog

GDT 182 - hold your breath!

The following blog is from JT Macfarlane who I introduced two weeks ago.  JT is keenly interested (and qualified) in commodity markets and is providing the below as a commentary on GDT; his motivation I think is mainly as a dairy farmer himself but is also as a Director of MyFarm....

Dairy commodity markets down

The following is a blog created from a regular newsletter provided by JT Macfarlane, a director of MyFarm.  JT is a dairy farm owner in his own right but he has a distinguished career as an investment banker and a particular knowledge of and interest in commodity markets.  He presented at the Grow your mind series of Seminars along with Brian Rice last year talking about how to manage with volatile commodity markets.

Where are the opportunities?

Most people have ambition for themselves, their career and ultimately for their family. People that make a difference generally want to engage in fulfilling work or endeavour within an industry that they love. Ambition means that they either want more important roles, increasing responsibility and the increasing [salary] rewards which go with this, or that they want to access a high growth opportunity so that they can rapidly build their wealth and participate in the rewards of asset ownership.

Under the bonnet with due diligence

Subject: 166 canopy hectare Vineyard development

Location: 1980 North Bank Road, Marlborough

Does earning 7.5% req a risky portfolio?

There have been several pieces of information over past weeks discussing the challenge for investors getting acceptable levels of returns with low levels of risk.

In a research brief by Callan, a real assets consulting practice based in the USA, they looked at rates of returns for (US) investors over the decades. Back in the 1990's, an investor could earn 7.5% from a simple portfolio of fixed income investments. Much the same could have been earned in NZ at the time.

Why wine makers are looking to investors to secure supply

The story behind the Patriarch Investment makes for some interesting reading.  New models emerging make agricultural investment an interesting alternative to commercial property.

The case for new Ag Investments

New Zealand agriculture is more than just dairy.

In the 12 months to 2016 dairy was 46% of NZ agricultural exports, the wider meat industry was approximately 30% and the combined fruit/wine/vegetable/fish sectors was 23% of Ag exports. But a closer look shows where the growth is - which is outside of the traditional dairy and meat industries.

 

New opportunities for young farmers

This note is a long one sorry – but please read to the end as I hope you will agree, it will be worth it.

Segmenting NZ dairy farmers

I have written a series of posts about NZ dairy wearing a ‘gloomy hat’. Unfortunately, nothing that has happened over the past few months has changed much. Global milk supply growth appears to be moderating, but it is still growth. Meanwhile the outlook for the world economy has deteriorated (EU growth, the latest concerns re: China, more QE from Japan etc) and the NZD looks to be stubbornly strong, despite recent RBNZ action.

Dairy cashflow challenges

I’m thinking (and perhaps hoping) that this is my last bad news post on the NZ dairy industry.  My following writing will be about the positive ways that farmers are responding to this recession, about the opportunities to restructure businesses to be viable at lower prices, and about new ideas that could take the industry forward.