There have been very big exchange rate cycles in recent years, although to some extent these have tracked our terms of trade in the way economic theory predicts they might, and hence helped cushion the economy from big moves in prices. When our overseas prices are high, a strong dollar tells New Zealanders they are richer, and vice-versa.
That is not to say that there is not scope by financial institutions and primary processors to develop new instruments to lessen exchange and interest rate risk, to offset capital risk, and to better incentivise farmers with longer term contracts. Despite this, we do still have a problem of imbalance ahead of us.