Frontline biosecurity 'untouchable'
Biosecurity Minister Andrew Hoggard has reiterated that 'frontline' biosecurity services within Ministry for Primary Industries (MPI) will not be cut under the Government's plan to reduce the public service.
The Government's much-publicised goal of primary exports hitting $64 billion by 2025 now looks like a pipe-dream.
Weak dairy prices are a severe drag on reaching the goal, as shown by the latest data from the Ministry for Primary Industries.
MPI's latest Situation and Outlook report, released last week, predicts that by 2020 exports will have reached just $44b; to achieve $64b would require 9.5% growth. The current growth rate is just 3.3%.
Dairy exports are down in value by 6% for the year ended June 2016 and MPI is not expecting any real recovery until 2018; even by 2020 the value of dairy exports is unlikely to equal the record high of 2014, the report says.
The future for meat and wool also makes glum reading, with just a 1% lift in prices.
Beef prices are expected to ease, but wool prices are at a five year record and are expected to remain firm because of lower production
The report says the two saviours of the economy have been the lower NZ dollar and the negligible effect of the El Nino summer weather.
Not surprisingly, horticulture – in particular kiwifruit and apples – turned up trumps with a massive 20% increase in value. Horticultural exports are now worth just on $5b and are predicted to rise to $5.7b in the next four years.
Transforming horticulture is the rise of kiwifruit, especially the SunGold variety. Kiwifruit exports are now $1.6b and are expected to hit $1.9b by 2020. Wine, apple and pear exports also contribute much to horticulture's rise in fortunes.
MPI says dairy will remain in the doldrums for at least another year until global stocks fall, which won't happen quickly. It predicts milksolids production in NZ will fall 1.6% in 2015-16, but will gradually increase to 2020.
Rural trader PGG Wrightson has revised its operating earnings guidance, saying trading conditions have deteriorated since the last market update in February.
It's been a bumper season for maize and other supplements in the eastern Bay of Plenty.
Leading farmers from around New Zealand connected to share environmental stories and inspiration and build relationships at the Dairy Environment Leaders (DEL) national forum in Wellington last month.
AgriZeroNZ, a joint venture fast-tracking emissions reduction tools for farmers, is pouring $5 million in a biotech company to develop a low emissions farm pasture with increased productivity gains.
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Te Awamutu dairy farmers Doug, Penny, Josh and Bayley Storey have planted more than 25,000 native trees on the family farm, adding to a generations-old native forest.