Reserve Bank estimates NZ dairy sector may default on 2%-to-14% of loans

Mon, 14 Dec 2015

By Fiona Rotherham Dec. 15 (BusinessDesk) - The Reserve Bank has estimated the cash-flow shortfall for the average dairy farmer is likely to be more than $1 per kilogram of milk solids this season and that banks could see defaults on between 2 and 14 percent of dairy sector loans. In an updated assessment of dairy sector vulnerabilities, the central bank said low global milk prices are placing dairy farmers under significant cash flow pressures with most farmers expected to have cash losses in the current season, compounding weak returns ...

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