Primary sector exports forecast to rise to over $42 billion
Primary sector exports forecast to rise to over $42 billion in 2018
New Zealand's primary industry exports are forecast to rise nearly 11 percent in the year ending June 2018 to $42.2 billion.
This would be the largest annual increase since 2014, according to the Ministry for Primary Industries’ latest quarterly update.
"Our Situation and Outlook for Primary Industries report shows export revenue across all of the sectors has been incredibly strong over the past year, particularly for dairy, meat and forestry," says Jarred Mair, MPI Policy and Trade Acting Deputy Director General.
“Dairy export revenue is expected to increase by more than14 percent in 2018 due to a recovery in prices over the past 12 to 18 months. It is also result of more milk being processed into higher value products such as infant formula.
“At the same time, the latest numbers show that dairy cow numbers have fallen since 2016.
“In addition, global red meat prices are expected to increase export revenue in the meat and wool sector by nearly 10 percent in 2018.
“Forestry exports are also forecast to grow by more than 11 percent in 2018, supported by record harvest levels and ongoing demand for New Zealand logs from China.”
High returns and new policies are likely to create investment opportunities across the primary industries, says Mr Mair.
“For example, high horticulture returns are driving investments in productivity and competition for suitable land.
“The Government’s One Billion Trees Programme is another catalyst for investment and changing land use, primarily through increased replanting rates and new production forest area.”
MPI’s Situation and Outlook for Primary Industries report provides a snapshot and forecast for New Zealand’s major primary sectors.