New Zealand's primary sector booming
Friday 21 Jun 2019The latest study of New Zealand's primary sector shows booming exports for the second year in a row. The SOPI report (Situation Outlook for Primary Industries) shows total farm, fishing and forestry exports for the year to the end of this month forecast to rise to NZ$45.7 billion.
That is a 7.1 percent rise for the year, and the it's accelerating: the June forecast is up by NZ$100m on the forecast for the one three months before. The SOPI report is prepared by the Ministry for Primary Industries.
Dairy export revenue is forecast to increase 5.7 percent to $17.6 billion supported by strong milk production and sustained global demand. Meat and wool export revenues are forecast to reach NZ$10.2bn up 6.4 percent from the previous year due mainly to strong red meat prices which more than offset low prices for coarse wool.
Horticulture revenue is forecast to have the strongest growth, by 13.7 percent for the year to NZ$6.1bn. Kiwifruit, wine, and apples and pears got the credit. Seafood export revenue is forecast to rise 7.3 percent to NZ$1.9bn.
The only negative spot was held by the arable industry, whose earnings are forecast to fall 4 percent, to NZ$235m, due to poor quality and lower yields in the 2018 harvest.
Forestry revenue is forecast to reach NZ$6.9 billion, an increase of 7.8 percent since 2018, driven by increased Chinese demand for New Zealand logs.
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