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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news