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

 

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:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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