FXStreet (Mumbai) – The RBNZ’s December Bulletin offers an updated assessment of dairy sector vulnerabilities.
The bulletin stated, “Low global milk prices are placing dairy farmers under significant cash flow pressure. Most farmers are estimated to make cash losses in the current season. Despite some farms with high debts facing considerable difficulties, most farms are expected to remain viable over the medium term. Losses for the banking system as a whole are estimated to be manageable even under a severe stress scenario for the dairy sector.”
(Market News Provided by FXstreet)