Farmers struggle with water and feed shortages
The drought in western parts of the North Island is reaching crisis point with many farmers from Northland to Taranaki having to truck in water and feed for their stock at great expense.
The Ministry for Primary Industries (MPI) Situation and Outlook report for September 2018, released today, gives an encouraging assessment of the major primary sectors which continue to grow, says Emma Taylor, director of agriculture, marine & plant policy.
“It’s a promising outlook and builds on the strong growth seen in 2018, when export revenue increased 11.8%. In 2018, dairy prices recovered from the lows of 2015 and 2016, high red meat prices boosted meat and wool revenue, and strong demand for logs in China led to record export prices and volume.
“Horticulture and dairy are the driving forces behind the increase forecast for 2019. Horticulture exports are forecast to rise 13.1% to $6.1 billion for the year ending June 2019. Improved growing conditions for the most recent harvest has led to higher yields for kiwifruit, and most other horticultural products.
“Dairy exports are forecast to rise 2.1% to $17.0 billion for the year ending June 2019, consolidating gains made in the last two years. With farm production growth likely to be relatively flat in coming years, revenue growth is expected to be driven by moves towards higher value products such as cheese and infant formula.
“Forestry exports are expected to remain stable at $6.4 billion for 2019. Log prices are expected to remain near record levels as Chinese construction activity is forecast to remain strong.
“After an impressive gain in meat and wool exports in 2018, exports are forecast to decrease by 1.3% to $9.4 billion in 2019. Despite forecast increases in farm gate prices for lamb and venison, decreasing production volumes are forecast to lead to lower export revenue overall.
“Overall, the latest outlook for our primary industries gives plenty of positives as we work to sustainably reposition primary industries up the value chain and deepen sector partnerships.”
For more information see: www.mpi.govt.nz/EIU
