This episode featured as part of the Agribusiness segment in partnership with BNZ.

Dairy farmers are running on thin margins as breakeven costs creep towards $8.80/kgMS, Coopers Aitken partner and CFO Grant Eddy says.

His firm benchmarks cash results across more than 100 clients.

“There isn’t a great deal of wiggle room for a lot of the clients,” he says, with those carrying more debt the most exposed.

He says farmers are using the Fonterra capital return to pay down debt, though banks are keen to keep the money working.

“Banks like their market share, and if they have money paid back, they’re not increasing their market share.”

This episode featured as part of the Agribusiness segment in partnership with BNZ.

This podcast is solely for information purposes. It’s not financial or other professional advice. No party, including BNZ, is liable for direct or indirect loss or damage resulting from the content of this podcast.

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.