September 2018 Situation and Outlook for Primary Industries
Media Release: September 2018 Situation and Outlook for Primary Industries
New Zealand’s primary industry export revenue is forecast to reach $43.8 billion for the year to June 2019, an increase of 2.5 percent from 2018.
The Ministry for Primary Industries (MPI) today released its Situation and Outlook report for September 2018.
“The latest update gives an encouraging assessment of our major primary sectors which continue to grow - up $1.1 billion from the previous year,” says Emma Taylor, Director of Agriculture, Marine & Plant Policy.
“It’s a promising outlook and builds on the strong growth seen in 2018, when export revenue increased 11.8 percent. In 2018, dairy prices recovered from the lows of 2015 and 2016, high red meat prices boosted meat and wool revenue, and strong demand for logs in China led to record export prices and volume.
“Horticulture and dairy are the driving forces behind
the increase forecast for 2019. Horticulture exports are
forecast to rise 13.1 percent to $6.1 billion for the year
ending June 2019. Improved growing conditions for the most
recent harvest has led to higher yields for kiwifruit, and
most other horticultural products.
“Dairy exports are forecast to rise 2.1 percent to $17.0 billion for the year ending June 2019, consolidating gains made in the last two years. With farm production growth likely to be relatively flat in coming years, revenue growth is expected to be driven by moves towards higher value products such as cheese and infant formula.
“Forestry exports are expected to remain stable at $6.4 billion for 2019. Log prices are expected to remain near record levels as Chinese construction activity is forecast to remain strong.
“After an impressive gain in meat and wool exports in
2018, exports are forecast to decrease by 1.3 percent to
$9.4 billion in 2019. Despite forecast increases in farm
gate prices for lamb and venison, decreasing production
volumes are forecast to lead to lower export revenue
“Overall, the latest outlook for our primary industries gives plenty of positives as we work to sustainably reposition primary industries up the value chain and deepen sector partnerships.”
MPI’s Economic Intelligence Unit has published a new webpage designed to make MPI’s data and analysis more accessible. For more information see: www.mpi.govt.nz/EIU
The next Situation and Outlook for Primary Industries report is due to be released in mid December.