Tuesday, 18 June 2024 09:55

A short, sharp downturn

Written by  Peter Burke
MPI director-general Ray Smith. MPI director-general Ray Smith.

MPI director-general, Ray Smith believes the downturn actually bottomed out in about January, and since then says things have been on the improve but adds that every sector will have different trajectory or timeline as to when there will be an improvement.

He says the downturn has been short and sharp and hopes the recovery will be fast.

“Dairy will likely bounce back in a year, but it will take longer for meat and wool to get back to past levels,” he says Smith says for dairy, volatility may be the order of day but says there is a likely return to better farmgate pay outs with MPI predicting an $8.50 payout. He notes the problems the red meat sector is facing especially in China, but adds that the US meat market is currently very strong.

For Smith, horticulture is a rising star and says it has a lot going in its favour including consumer strong consumer demand for healthy foods such as kiwifruit. He says the apple and pear sector has recovered very well considering the devastation it suffered with Cyclone Gabrielle.

He says the other thing going for the horticultural sector is that it has the most balanced portfolio of consumer-friendly markets and is not reliant on one main market.

Agriculture Minister Todd McClay says it’s not been an easy year for the sector, but says his government is focused on backing farmers and growers and putting more money in their pockets so they can continue to adapt, evolve and innovate in the future. He says his government has already begun work on reducing the impact of Wellington bureaucrats on farming by cutting red tape and ensuring regulations are fit for purpose.

More like this

NZ seeks certainty on US tariff, says McClay

Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.

Farmers urged to prepare as heavy rain looms

With adverse weather set to rain down on the Top of the South, the Bay of Plenty and parts of Northland, Agriculture Minister Todd McClay says farmers, foresters, and growers need to prepare for possible challenges.

Featured

Editorial: Credit where it's due

OPINION: While farmers are busy and diligently doing their best to deal with unwanted gasses, the opponents of farming - namely the Greens and their mates - are busy polluting the atmosphere with tirades of hot air about what farmers supposedly aren't doing.

Farmers Lead Sustainability Push: Woodchip bioreactor cuts nitrate runoff in Manawatu

Claims that farmers are polluters of waterways and aquifers and 'don't care' still ring out from environmental groups and individuals. The phrase 'dirty dairying' continues to surface from time to time. But as reporter Peter Burke points out, quite the opposite is the case. He says, quietly and behind the scenes, farmers are embracing new ideas and technologies to make their farms sustainable, resilient, environmentally friendly and profitable.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Red faced

OPINION: The Greens have taken the high moral ground on the Palestine issue and been leading political agitators in related…

Cold comfort

One of the most galling aspects of the tariffs whacked on our farm exports to the US is the fact…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter