Proud partner of
Property Brokers
Farmlands
CO-operative
Rural market update
New Zealand farm sales continue to strengthen
- double the same time last year.
Commodity prices for New Zealand primary products are at the
highest level ever recorded in the ANZ World Price Index and in NZ
dollar terms. The history of the index goes back to 1986 when they
began at 100. During March it rose to 341.6, up 20 percent on the
same time last year. None of the major commodities that make
up the indexes were at their record highs. The current trend reflects
strength across the board - this bodes well for NZ primary sector
producers who have endured significant operating constraints over
the last 12 months.
Sheep and beef shareholders will be pleased to learn; we continue to
field genuine buyer inquiry from traditional farming interests looking
for properties at scale in support of both succession and investment.
We welcome inquiry now on this class of property.
So, as the nights draw closer and temperatures drop, we continue
to encourage those contemplating their property options for next
season to talk to us ahead of time. The opportunity to make the
adjustments on farm in preparation for a sale is now, not when
calving and lambing are in full swing.
We are anticipating improved terms of trade as international
COVID-19 constraints ease, and restaurants and hospitality generally
pick up again. Particularly for trade like venison and lamb racks,
as consumer confidence returns. In short, the NZ produce story is
typically in great shape, even with an appreciating NZ dollar.
We have caught up with many Farmlands shareholders in recent
months through a combination of field days and in-store promotions
and we always value the opportunity to connect ahead of time.
If you have not heard from us and would like the opportunity to do
so, we will have our strongest presence yet at Mystery Creek this
June, in addition to our normal business activities.
This is definitely translating into confidence to invest in our primary
sector. Nationally, the first quarter of 2021 saw 326 rural sales
for $848m (pastoral) – up almost $400m on the same time last
year. Dairy farm sales at $219m continue to underpin these results
making up 55 percent of the sales value, from 26 percent of sales
from January to March 2021. On the prior year, dairy sales are
running at twice the value and volume this calendar year.
For rural and lifestyle property advice from a national team of
committed salespeople, supported by our expert marketing team,
right across New Zealand, call 0800 367 5263 or visit pb.co.nz.
Conrad Wilkshire,
South Island dairy sales continue an upward trajectory. While back
on North Island volumes, we continue to see strength return to this
market with our most recent large scale, North Otago dairy auction,
successfully selling for $15,550,000 at Otekaike, west of Duntroon.
GM Rural for Property Brokers Ltd
National Rural Sales 20ha+
12 months to March 2021 (Excluding Forestry and Horticulture)
Period
No of Sales
Prior Year
Total Sales Value
Prior Year
Year on Year Change
Mar 2021
128
74
$362,368,049
$152,913,977
$209,454,072
Feb 2021
124
71
$315,136,871
$152,394,885
$162,741,986
Jan 2021
74
75
$170,715,600
$146,323,450
$24,392,150
Dec 2020
188
132
$460,271,310
$312,956,133
$147,315,177
Nov 2020
156
102
$400,635,214
$294,090,549
$106,544,665
Oct 2020
105
65
$251,329,431
$131,637,950
$119,691,481
Sep 2020
86
66
$153,049,892
$139,750,070
$13,299,822
Aug 2020
77
68
$145,601,250
$123,495,384
$22,105,866
Jul 2020
108
63
$238,553,107
$129,713,458
$108,839,649
Jun 2020
80
64
$136,133,260
$163,922,885
-$27,789,625
May 2020
64
94
$111,305,407
$226,412,060
-$115,106,653
Apr 2020
47
94
$101,562,324
$211,053,449
-$109,491,125
Total
1,237
968
$2,846,661,715
$2,184,664,250
62 | THE FARMLANDER
Property Brokers Ltd Licensed REAA 2008 | 0800 367 5263 | pb.co.nz