Primary sector future hailed
The government is hailing the news that food and fibre exports are predicted to reach a record $62 billion in the next year.
According to the latest Situation Outlook for Primary Industries report, all sectors, bar the wine sector, are enjoying rising income.
OPINION: Ministry for Primary Industries' situation outlook for primary industries report (SOPI) makes impressive reading.
All sectors, bar the wine sector, are enjoying rising income as global demand for New Zealand's high-quality, safe, and sustainable products remain strong.
The report forecasts food and fibre export revenue to reach a record $59.9 billion in the year to 30 June 2025, rising to a further record $65.9 billion in the year to 30 June 2029.
Dairy export revenue will rise 16% to reach a record $27.0 billion, meat and wool export revenue increasing 8% to $12.3 billion, horticulture export revenue growing by a phenomenal 19% to $8.5 billion and forestry export revenue jumping 9% to $6.3 billion.
Breaking down into smaller hort sectors: apple and pear exports for 2025 are forecast to surpass the $1 billion milestone, driven by increases in export volume, kiwifruit exports are forecast to rise by 36% in the year to 30 June 2025, reaching $3.9 billion, avocado export revenue is forecast to rise 192% to $108 million in the year to 30 June 2025, and cherry exports netted a record export revenue of $124 million, up 35% from the previous season. Vegetable export revenue is forecast to grow 8% this season, reaching $770 million.
The figures reflect the strength and resilience of the people who deliver them.
And what farmers, growers and producers need is the Government's backing. To its credit, the Government has focused on restoring confidence in the sector, lifting on-farm productivity and profitability, and cutting the red tape that's been holding rural New Zealand back.
However, more needs to be done. Land use policies that stifle growth of primary sector businesses and favouring urban development over farming on productive land must change. We've had a decade of policy that has favoured forestry over farming, incentivising planting radiata, particularly for carbon revenue. On top of that, excessive red tape and layers of impractical and poorly consulted-on regulation have strangled farming confidence and investment.
The SOPI report shoes that when our rural communities do well, the whole country benefits. That's why we're making sure our farmers and growers have the tools and support they need to succeed - not just today, but for the long-term prosperity of New Zealand.
The Government must ensure that it's supporting - not stifling - innovation and growth for farmers and growers.
According to the latest Federated Farmers banking survey, farmers are more satisfied with their bank and less under pressure, however, the sector is well short of confidence levels seen last decade.
Farmer confidence has taken a slight dip according to the final Rabobank rural confidence survey for the year.
Former Agriculture Minister and Otaki farmer Nathan Guy has been appointed New Zealand’s Special Agricultural Trade Envoy (SATE).
Alliance Group has commissioned a new heat pump system at its Mataura processing plant in Southland.
Fonterra has slashed another 50c off its milk price forecast as global milk flows shows no sign of easing.
Meat processors are hopeful that the additional 15% tariff on lamb exports to the US will also come off.

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