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

 


Primary Industry’s outlook good

Primary Industry’s outlook good


Federated Farmers believes the ‘2014 Situation and Outlook for Primary Industries’, released by the Ministry for Primary Industries, shows a promising future for the New Zealand economy thanks to kiwi farmers.

“This report shows an increase of 16.3 percent in primary sector exports, to $37.7b on the previous year, which translates to increased farmgate incomes of 22 percent and an increase in off farm spending of 11 percent,” says Bruce Wills, Federated Farmers National President.

“These statistics remind us of the importance of exports to New Zealand, in particular the impact on farmgate incomes and spending on farm inputs, which has a direct influence on rural and provincial economies.

“The star performers have been the dairy industry, leading with a 31 percent increase and the forestry industry, following with a 14.5 percent increase. However, the lower dairy and forestry commodity prices forecast for 2014/15 will see our exports dropping by 4.8 percent.

“With 2014/15 set to be more of a challenge, we need a business-friendly environment, with policies supportive of agriculture rather than policies that will harm it. Farmers are set to pay a whopping $2.7 billion in bank interest over the coming year as interest rates rise, so harmful policies like a carbon tax, resource rentals tax on water, and a capital gains tax would only further cripple our productivity.

“The good news is that we had a bumper 2013/14 year and exports should resume their upward progress in the outward years of 2017/18.

“The Reserve Bank’s increase in the OCR comes as no surprise but it does run the risk of underpinning the high exchange rate and delaying its necessary correction to reflect the lower commodity prices. Farmers will be hoping the Reserve Bank is right and that the exchange rate will in fact fall, but if it doesn’t then it might be time for a pause in the OCR. Otherwise we could see a sharper reduction in exports and farmgate incomes,” concluded Mr Wills.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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