Credit crunch on the farm

Panel 1
Dairy bubble burst
Total farm sales: 64% fall
291 in Nov 07
104 in Nov 08
Less than half 4yr Nov av.




Panel 2
Dairy farm sales
55 in Nov 07
17 in Nov 08
69% drop
April 08 still in 50’s
December 16, 2008



Panel 3
Nov 21 Fonterra forecast
$6/kg from $7.90 last year
Internet milk prices
Halved since July 08
BNZ expects more
Confidence slump
52% to -3%
December 16, 2008

Panel 4
Fallout
Agricredit leap since May 07
One month under ¼ bln
Up NZ$10b in 17mths
Previous $10b: 35 mths
December 16, 2008



Panel 5
Transition
Easy credit to hard credit
Future supply problem
Harder to roll over
OCR cuts keep lid on cost
But doesn’t directly address
Credit criteria
December 16, 2008

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Tags:

• dairy
• farm
• credit crunch

[KhmerD0g]

what happen to heck?