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Primary sector exports continue to boom

Primary sector exports continue to boom

Primary Industries Minister Nathan Guy has released new figures today forecasting a rise in primary sector exports for this year, to nearly $5 billion higher than originally forecast.

The Ministry for Primary Industries has updated the Situation and Outlook for Primary Industries Forecast Update for January 2014.

It reveals an upward trend for agriculture, forestry, and fishing exports by $4.9 billion to $36.4 billion for the year to 30 June 2014.

“This is more economic good news, and shows how the primary industries continue to underpin the New Zealand economy.

“It’s very pleasing to see dairy sector returns forecast to rise by $2.7 billion in 2013/14, and a $1.2 billion increase in meat exports over the same time.

“Growth in these sectors is being helped by rapidly growing demand in emerging markets, and supply constraints in our major competitors.

“The report shows that global demand for sheep meat has risen as China is consuming more, and demand is recovering in the United Kingdom.

“Log prices also increased by 30 percent in the second half of 2013 and forestry firms are expected to take advantage of higher international prices by increasing harvest volumes. This will lead to an additional growth in returns of $0.8 billion in 2013/14.

“As a Government we’ve set a goal of doubling primary sector exports by 2025 and this is another big step towards that. It will be important to build on this growth through the Primary Growth Partnership, encouraging irrigation and water storage, progressing free trade deals, new roads and RMA reform.

“It is very telling that all of these policies to support our most productive industries are opposed by Labour and the Greens. This gives provincial New Zealand a clear choice to make at this year’s election,” says Mr Guy.

A full copy of the updated report is available at www.mpi.govt.n

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