After years of farmers ‘making nothing’, Father of the Fieldays Peter Nation reckons things are looking up and it’s not the only bright spot for the region.
As tractor sellers look forward to moving machines at the agricultural mainstay, interest rates continue to fall, Government policy is providing tailwinds and international visitors will soon have direct access to Hamilton, the fastest growing city in country.
There’s glitz, too – the grand opening of the world class Waikato Regional Theatre is just around the corner.
This week Fonterra announced a “strong” profit after tax of $1,158 million, up $119 million on this time last year, with farmers now looking at an opening forecast Farmgate Milk Price for the 2025/26 season of $10.00 per kgMS.
It’s good news for farmers and the country, after five years of farmers “making nothing”, according to Nation. He reckons there are better times to come, thanks to the rural sector, who have “bailed out” the country.
“Look at the Waikato – all the industries here are hanging off the end of it.”
He said related industries such as trucking, transport and freight wouldn’t be there, going down SH1 at night ”full of food“ without agriculture.
With strong export prices for dairy, sheep and beef, Nation “guarantees” people will go and buy a new tractor at Fieldays this year.
Nation, who is the Chair of the Waikato Chamber of Commerce, says not only is Hamilton the country’s fastest growing city, but the Waikato region “probably the fastest growing region as well”.
Hamilton City Councillor and Chair of the Economic Development Committee Ewan Wilson said while dairy was “critical”, it was “one of many strong strands” that held the city together.
“These are all important measures that show Hamilton is rightly the fastest growing city in New Zealand and is likely to be for some time.”
Most notable to the ex-airline owner is the return of domestic jet services to Hamilton Airport for the first time in 25 years, and of international flights.
Air New Zealand announced it’s introducing jet services five-days-a-week on the Hamilton-Christchurch route from September 18.
The announcement comes just weeks before the airport’s new international terminal is due to open, welcoming Jetstar flights from Sydney and the Gold Coast from June 18.
The trans-Tasman flights are expected to bring around 60 new jobs to the airport and up to 300 more across the wider region.
Wilson said Jetstar’s investment in the airport was “a game changer” for the region, and a “significant economic injection”.
He said it’s not just Hamilton to Sydney and the Gold Coast, it’s, “Hamilton to the world, in both directions”.
“You can have passengers out of Narita, Japan, using Jetstar over Sydney and flying into Hamilton.”
He said 8% of the 250,000 Chinese visitors to New Zealand last year visited via Sydney.
Soon, they could fly Sydney direct to Hamilton.
“That’s a huge economic enabler”.
They’ll also have somewhere to stay, with two “significant” hotel developments in the CBD on the way, the $120 million Templeton, and the $100 million Pullman Hotel.
Things are looking up in housing too, with the March Infometrics residential consents figures showing positive signs and “a little more upward momentum” after stabilising over the second half of 2024.
Hamilton’s 740-hectare Peacocke development has seen a recent surge in interest.
It has several hundred homes already built and many times that in the pipeline.
While a tight economy slowed action in recent years, Hamilton City Council says it’s now got key planks in place like the Te Ara Pekapeka river bridge and key wastewater infrastructure.
Wilson said these economic indications showed there was “clear confidence in the market”.
Confidence is also set to be high at the biggest agricultural event in the Southern Hemisphere in June. Power Farming executive director Brett Maber says Fieldays has “come at a good time”.
“It’s been pretty tough”, said Maber, and while sales were still “pretty slow” he was “pretty encouraged” by the Government’s latest “Investment Boost” announcement.
Farmers, growers, processors and other business owners are now able to deduct 20% off the purchase of new farm equipment, tools or machinery from their taxable income.
“There’s no better time to invest in your business”, said Maber.
Rabobank analyst Emma Higgins said Waikato was the “powerhouse” of dairy in the North Island, and “when our exports are doing well, it tends to flow through” to the broader economy.
Higgins said Thursday’s payout announcement was “fabulous news” and would drive “improved confidence”, which was already elevated across the dairy industry.
“We’ve got the situation where sheep, beef, and dairy farmers are all feeling optimistic about both their own business and the broader agricultural economy.
Higgins said opening the milk price at $10 was “very bold” and signalled anticipation that the dairy markets will remain “quite strong” through the new season.
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