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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news