We hold a cautious outlook on New Zealand’s agribusiness sector, as we expect a strong dollar to erode the earnings of the highly export-dependent industry. We believe that the business environment for New Zealand’s agricultural sector is likely to deteriorate over the next few years as increasing regulatory requirements and volatile weather conditions require the industry to undertake more costly infrastructure investments. Moreover, the government’s focus on fiscal sustainability suggests greater incidence of infrastructure costs to be borne by the private sector. The harsher business environment is likely to leave the sector more open to foreign investment, but we believe …
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