MPI’s Diana Reaich: Building global trade relationships
Relationships are key to opening new trading opportunities and dealing with some of the rules that countries impose that impede the free flow of trade.
New Zealand’s primary sector exports continue to surpass expectations, with revenue forecast to grow 7.1% on the previous financial year.
The Ministry for Primary Industries’ Situation and Outlook report for June 2019 forecasts primary industry revenue to reach $45.7 billion for the year to June 2019, slightly above the March 2019 forecast.
The report was released today by the Agriculture Minister Damien O’Conno at the National Fieldays, Hamilton.
O’Connor says this is the second straight year of substantial export growth, with significant gains across most primary industry products.
“Export performance is up nearly $7.5 billion over the last two years. That’s incredibly impressive considering the weakening global economic environment and a rising sense of uncertainty in global markets,” he says.
Sustained demand from China and South East Asia is supporting prices for dairy exports. Horticulture and pasture-based production excelled in most areas, with red meat weights and milk production both high, and kiwifruit production up 25% on the 2018 harvest.
Growers are anticipating good demand for New Zealand apples from UK and continental Europe, as well as China, following the market success of new varieties, says O’Connor.
He says that over the next year, a focus on higher value products, combined with ongoing favourable exchange rates, is expected to support export revenue growth.
“I’m really pleased to see New Zealand’s primary sectors succeeding through investment in innovation and focusing on a move away from volume to value.
“I know that, while the big picture is very bright, for many producers it has been a tough year. We’ve had regions affected by drought, fires, biosecurity responses like M.bovis and fruit flies and also untimely cool temperatures affecting some fruit yields,” he says.
“I think it’s fair to say that the only constants for the primary sectors are change and challenges. Our producers should be really proud of their resilience and ongoing high performance. I’m certainly very proud of them.
“I’m confident that by continuing to focus on high value, sustainably produced food and fibre, we’ll have strong years ahead”.
This is the second straight year of substantial export growth, with significant gains across most primary industry products:
The next report is due to be released in September.
Acclaimed fruit grower Dean Astill never imagined he would have achieved so much in the years since being named the first Young Horticulturist of the Year, 20 years ago.
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.

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