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

 

Burgers To America: BurgerFuel Opens In The USA

BurgerFuel Worldwide are excited to announce the opening of their first USA based restaurant in Indianapolis, hot off the back of the Indy 500. More>>

English On Budget: Businesses Over-Egg Corporate Tax Cuts

Cutting New Zealand's 28 percent corporate tax rate is "not a panacea in the way business groups sometimes market it," says Prime Minister Bill English. More>>

ALSO:

Auckland Port To Recapture Gas: Union Calls On Ports To Stop Spewing Methyl Bromide

The Maritime Union of New Zealand welcomes the decision by Ports of Auckland to stop releasing methyl bromide emissions into the air. The move to fully recapture the toxic gas after fumigation sets a new benchmark for industry best practice. More>>

ALSO:

Retail: Banks Shoes Calls In Receiver

Banks Group, which runs 14 stores across the country under the brands including Banks Shoes and Shoe Connection, has been tipped into receivership at the request of director John Bank. More>>

ALSO:

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier: