Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


A dismal summer that boosted the economy

5 March 2012

A dismal summer that boosted the economy

Recent releases by Statistics NZ, including Overseas Trade Indexes and New Zealand’s Overseas Merchandise Trade for January 2012, point to a bumper export performance led by New Zealand’s farm system, largely due to a wetter summer which allowed many regions to increase productivity. However, some dark clouds are gathering.

“New Zealand’s big six agricultural exports have grown in export value by an amazing $2.6 billion over the past year,” says Bruce Wills, Federated Farmers President and its economics and commerce spokesperson.

“Despite the occasional weather bomb, such as the weekend’s storm, wrecking havoc, the summer of 2012 may go down as the dismal summer that boosted the economy.

“The increased value of dairy, meat, wood, fruit, fish and wine exports this season is more than all the revenue generated by Telecom.

“This increased export value provides 2.6 billion reasons why New Zealand needs to safeguard and maximise its agricultural potential.

“Merchandise export volumes right now are at their highest in 22 years and New Zealand’s merchandise exports are up 13 percent on January 2011.

“Dairy remains a star with its export receipts up 17 percent on 2011.

“In December, Fonterra Cooperative Group was packing an export container every 2.7 minutes. Because January and February were mild and damp in most regions, we can expect record numbers given milk production was up around 10 percent on 2010/11.

“Wool has also increased its export receipts by 29.6 percent over last year. The $818 million it generated in the year to January 2012 is an increase of $187 million. While we know meat production volumes are down, its value is up.

“However, there are dark clouds on the horizon.

“There are growing tensions in the Middle East as well as economic woes in Europe; the two could collide nastily.

“Most economic forecasts expect commodity prices will ease over 2012, with particular pressure on meat.

“The dismal summer proves the value of water. Without guaranteed access to water, increased production rests in the lap of the gods.

“While Federated Farmers has achieved significant policy success in getting water storage and rural broadband on the table, there’s still much to be done.

“It also should be noted, that while February’s cool, wet weather has benefitted many farmers, it has not helped Canterbury’s arable farmers with harvesting. The dry summer in Southland and Otago also means there is a prospect of winter feed shortages unless the region has a benign autumn.

“We still hope the Kiwi dollar will remain in line with the fall in commodity prices, but so far there hasn’t been much evidence of this in 2012. If it doesn’t dip as it should, we could face some big challenges,” Mr Wills concluded.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news