15 Oct 2014

Agribusiness has peaked - survey

2:04 pm on 15 October 2014

The majority of agribusinesses surveyed by accounting company MYOB believe growth in their sector has peaked.

Research for the accountancy software company, MYOB, has questioned owners of small and medium primary industry firms.

The survey canvassed 140 people running agriculture, forestry and fishing businesses.

About 1 in 5 of the small and medium agribusiness operators are forecasting a rise in their revenue to the year ending September 2015.

MYOB said talk of the sector having reached its peak reflects the slide in international commodity prices, particularly in dairy and forestry.

One of its managers Scott Gardiner said the businesses are preparing for tougher times. On the up side, he says beef and lamb prices are strong.

Mr Gardiner said other than the constant strain caused by fuel prices, some of those questioned are forecasting growing pressure around the high dollar.

But he said, hopefully, the Reserve Bank's intervention in the dollar will provide some relief for the rural community.

Mr Gardiner said good managers will be closely watching the market indicators and will be working on making adjustments in their operations.