Dairy Price Slump forcing Sharemilkers out of business
As I have predicted for at least the last couple of months sharemilkers (one of the key customer groups HNZ have been targeting for loan growth), are in real trouble and the dairy price collapse is starting to force some of them out of business already, surely even far worse to come with the latest additional 10% GDT auction price fall this week.
http://www.radionz.co.nz/news/rural/...el-price-pinch
How you forecast loan provisioning for the FY16 year (and therefore forecast net profit after same), I have no idea but HNZ are sure putting a brave face on this forecasting profit growth in this environment ! But does the market agree or see through this bravado ?
And this, make no mistake its very grim http://www.radionz.co.nz/news/rural/...r-price-plunge