Dairy, hort lead bounce back
The latest Ministry for Primary Industries report on the state of the primary sector shows that things are starting to look up after a rough 2023-24 season.
Agriculture Minister Damien O'Connor is talking up the latest figures, which show export returns from the primary sector year topped the $53 billion mark this year - an 11% increase on the previous year.
O'Connor described the result as outstanding and says it all happened in the face of global turmoil and uncertainty. The news came in the December report of the Situation and Outlook for Primary Industries (SOPI), which produces quarterly updates on how the sector is tracking in terms of export receipts. It also provides commentary on this and the issues the sector has faced and could face in the coming year.
The report was unveiled recently at Fieldays before a group of industry leaders and Ministry for Primary Industries (MPI) officials. It shows that the dairy industry was the main contributor to the increase. This was up by a massive 15% on the previous year to $22 billion and expected to increase by more than a billion in the coming year.
Another big contributor was the meat and wool sector, with export returns up by 18% to just over $12 billion on the previous poor season. However, in the coming season, MPI is only forecasting a mere 1% increase. Overall, horticulture exports rose by just 2% to $6.7 billion - with a modest 5% rise expected next year. Forestry exports remain at about the 2021 level.
O'Connor claims that accelerating NZ's export growth is a major cornerstone of the Government's economic recovery plan, and says the report shows further evidence that this plan is working.
He added that it's comforting to know there is strong demand for food and fibre, keeping NZ's economy better positioned compared to others.
"I think at the time when it is hard to shift a lot of our product, it's a classic example of moving up the value chain and selling to consumers who want to connect with NZ."
O'Connor admits people are uncertain as to what the future might hold for them, especially if they are hearing some of the advice from our customers offshore about how they want the food they eat produced. He claims that NZ is going to have to step up and reduce farm emissions to meet the requirements of our customers.
"That is the reality that we face and we do have to look forward and change, despite the fact that it can be difficult depending on the nature of a farm and the systems it is running."
Meanwhile, the report points to further uncertainty and disruption - geopolitical or climatic.
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