MPI defends cost of new biosecurity lab
The head of the Ministry for Primary Industries (MPI) biosecurity operation, Stuart Anderson, has defended the cost and the need for a Plant Healht and Environment Laboratory (PHEL) being built in Auckland.
MPI's latest Situation and Outlook for Primary Industries (SOPI) report is predicting that export returns for the year will be almost $60 billion - 12% up on last year and forecast to hit $65.8 billion by 2029.
Leading the charge is dairy which will see record export earnings of $27 billion (up 16%), horticulture $8.4 billion (up 19%) and meat and wool eclipsing $12.3 billion (up 8%). All the other sectors are also up. This massive jump comes despite ongoing global trade uncertainty and broader macroeconomic challenges.
Smith says MPI have always seen themselves as good forecasters in the ag sector but says going from $53 billion to nearly $60 billion in a year is much better than they thought.
"Look at the dairy revenue at $27 billion - that's added $4 billion more in export earnings - a phenomenal result," he told Rural News.
"Sheep and beef have done well despite it being a tough year and profitability is now returning to the sector.
"As for horticulture, led by $3.9 billion in kiwifruit exports - up a billion in just a year, that is amazing. So, a big shout-out to growers who have produced all this extra fruit and to Zespri who have managed to sell it at good prices," he says.
Smith says it's also good to see the wool sector start to gain some momentum with prices coming back and volumes up. He says the growth is right across the board in the primary sector with some areas that have suffered in the past such as avocados, doing well.
He says all primary producers along with processing companies and those taking products to market around the world should feel proud of their efforts.
"I think the world is a bit short of protein and people are recognising the value of NZ products because they are of consistently high quality, safe and food is incredibly nutritious and tastes great. We have been through a tough period, but we are now on the way up and despite some uncertainty out there we are well positioned for the future," he says.
Agriculture Minister Todd McClay says the figures reflect the hard work and resilience of the hardworking men and women of provincial New Zealand. He says strong global demand and healthy prices across key markets are positioning our high-quality, safe and sustainable food and fibre exports for record growth.
McClay says a priority for the government is to open new markets to Kiwi exporters, and the new Investment Boost tax incentive will encourage businesses to invest, be more competitive, grow the economy, and lift wages.
"When rural New Zealand does well, the whole country benefits," he says.
