Ray Smith: Dairy still has growth potential despite flat export outlook
Ministry for Primary Industries (MPI) Director General Ray Smith believes there is potential for an increase in dairy farming in New Zealand.
The government is hailing the news that food and fibre exports are predicted to reach a record $62 billion in the next year.
This is up 3% on last year’s record of $60.3 billion.
Agricultural Minister Todd McClay says this is an outstanding result considering it’s being such a tough year with weather impacting locally and global conditions continuing to be as challenging as ever.
The key growth movements come in the following areas
McClay says the sector is well positioned to capitalise on robust demand and strong prices, supported by good growing conditions and higher production in most areas.
“Farmer confidence is back up, farm profitability is improving for many producers, and New Zealand is turning the corner out of recession thanks to our export-led economic recovery. We’re also taking steps to boost productive and sustainable growth through more flexible land use,” he says.
The news is particularly good for sheep and beef farmers and the kiwifruit sector.
But while there is delight at the increase, there is a caution that there is no absolutely certainty anymore – especially in the geopolitical space. One commentator summed it up by saying “the situation is stable, but still uncertain”.
One of New Zealand’s longest-running pasture growth monitoring projects will continue, even as its long-time champion steps away after more than five decades of involvement.
The Insurance & Financial Services Ombudsmen Scheme (IFSO Scheme) is advising consumers to prepare for delays as insurers respond to a high volume of claims following this week's severe weather.
Additional reductions to costs for forest owners in the Emissions Trading Scheme Registry (ETS) have been announced by the Government.
Animal welfare is of paramount importance to New Zealand's dairy industry, with consumers increasingly interested in how food is produced, not just the quality of the final product.
Agriculture and Forestry Minister Todd McClay is encouraging farmers and growers to stay up to date with weather warnings and seek support should they need it.
The closure of SH2 Waioweka Gorge could result in significant delays and additional costs for freight customers around the Upper North Island, says Transporting New Zealand.

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