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

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news