increase font size
The strong growth forecast across most sectors and dairy prices expected to gradually increase over the next two years.
The Ministry for Primary Industries (MPI) says the outlook for New Zealand primary industries is positive.
The strong growth forecast across most sectors and dairy prices expected to gradually increase over the next two years.
MPI Director of Sector Policy, Jarred Mair, says the latest Situation and Outlook for Primary Industries (SOPI) shows that, overall, exports have returned to growth this year – providing a clear signal of the strength of our primary industries.
"New Zealand primary industry export revenue is estimated to reach over $36.7 billion in the year ending June 2016, supported by strong growth in horticulture and other primary sector exports and foods," says Mair.
Recent years have provided challenges for a number of our sectors, and underlined the highly competitive and dynamic markets we trade in.
For some sectors a drop in the New Zealand dollar has softened the impact of lower US dollar prices. Meanwhile on-farm, production across the primary sector has been relatively stable as El Nino conditions did not result in widespread drought.
"The dairy industry has responded decisively to the subdued outlook through consolidation of their businesses to improve productivity and manage their costs," says Mair.
"Dairy prices have remained weak as global supply is still abundant. New Zealand production is down marginally but export volumes are up. Production is still high in the EU [European Union], which is keeping downward pressure on prices.
"Overall there has been a 6% decline in the value of dairy exports in the past year, but an expected gradual price recovery should lead to increasing dairy export values looking out 2 to 3 years. Overall our forecasts show 34% growth out to 2020."
Mair says horticulture exports are expected to continue their run of impressive growth over the medium term.
Horticulture exports exceeded $5 billion for the first time in 2015/16. Kiwifruit exports hit record levels for the year to March 2016, and exports of wine, apples, and pears are increasing due to new plantings reaching maturity. As an example, apple and pear export revenue has doubled since 2012, estimated to reach almost $700 million for the year ending June 2016. Horticulture prices have also increased as New Zealand has maintained its position as a supplier of premium products.
"Strong growth is also being seen in exports of innovative processed foods, honey, live animal, and other products.
"The outlook for the primary sector is supported by industry's significant investments in processing capacity across the country in a range of sectors.
"Free trade agreements will also help grow our exports, while population growth and economic development throughout Asia will support increased demand for New Zealand's protein, horticulture, wood, and fibre products," says Mair.
Testing confirms H5 bird flu in a single northern giant petrel, found dead on a remote Cape Palliser beach in the Wairarapa, says Dr Mary van Andel, the Ministry for Primary Industries' (MPI) Chief Veterinary Officer.
The apple sector is working with the Government to unlock access to two key markets that could bring millions in revenue for apple growers.
A Palmerston North shearer has been sentenced to six months' community detention and 12 months' supervision after being found to have physically abused three lambs while shearing them.
OPINION: A simpler, clearer, more effective Recognised Seasonal Employer (RSE) scheme.
The country's second largest milk processor is warning against 'complacency' during a review of competition regulations in the dairy sector.
Bigger, bolder salads packed with colour, crunch and flavour are making headlines overseas — and the arrival of fresh spring vegetables means New Zealanders can now get chopping too, creating their own Great Kiwi Spring Salad.
Chinese beef trade quotas and a looming suspension of Brazilian beef imports into the European Union are expected to reshape global beef trade flows over the remainder of 2026, with implications for New Zealand exporters, according to Rabobank's Q3 Global Beef Quarterly report.
James Blair, an agronomist for AS Wilcox and the Pukekohe regional champion, has won the 2026 Young Grower national title.
An Auckland gelato shop and an established New Zealand ice cream maker have both been named Supreme Champions at the NZ Ice Cream & Gelato Awards 2026.
As the cost-of-living crisis continues to put pressure on household grocery budgets, new figures show pork remains one of the most affordable fresh meat options for New Zealand families.
OPINION: In politics, credibility is and should be big. It must surely rank higher than charisma, which is quite trite and superficial. Yet, voters nowadays are often wooed and influenced by how someone looks or talks at a superficial level. TV plays a huge role in this.
OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…
OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…
