NZ farm export income to slide 5pc

JON MORGAN
Last updated 11:23 12/12/2012

Relevant offers

Farming

Resident worried by Fonterra stink Hawke's Bay grape grower wins top wine award Foreign land sales hotly debated Taranaki farm wins effluent fitness warrant From the worst dairy farm to one of the best Shrek the sheep still the champion Unchecked land conversion resulting in nitrogen loss Rabo head sounds positive note for NZ produce Store lamb market eases at Canterbury Beef cows reach $2kg mark at Coalgate

New Zealand's farm export returns are being badly hurt by deteriorating global economic conditions, according to the Primary Industries Ministry.

The ministry, in a half-year update released this morning, is picking farm export revenue for the year to June 2013 to be around $27.5 billion, down 5 per cent on the previous year's income of $29.2b.

Farm exports are the equivalent of about 13 per cent of total gross domestic product.

The update shows strong pastoral production so far this season.

"This is partly due to favourable climatic conditions during the previous season which left breeding stock in good condition, and also ongoing expansion of the dairy herd," says the ministry's economic information and analysis manager, Chris Jones.

However, a continuing economic slowdown, particularly in the traditional European markets, is causing weaker demand for some New Zealand products such as lamb.

The strengthening of the New Zealand dollar against most major trading currencies in recent months is also having a dampening effect. 

Key points:

* International dairy prices are expected to recover over this season and beyond.

* Lower lamb prices are expected, resulting from weaker demand in key European markets.

* Beef prices are expected to remain firm over the next two years, as North America production recovers from widespread drought.

* Forestry earnings will remain under pressure over the next few years, due to subdued demand from major export markets.

* Horticultural exports are on track to reach $3.5 billion in the year to March 2013, with higher in-market prices expected to offset lower volumes of kiwifruit and wine.

* The bacterial vine-killing disease Psa-V has spread to nearly all kiwifruit growing regions, and will adversely impact gold kiwifruit exports in the year to March 2014.

Ad Feedback

- BusinessDay.co.nz

Special offers
Opinion poll

Does the continued sale of New Zealand land to overseas interests concern you?

Yes

No

Vote Result

Related story: Lochinver Station sale leaves Fed Farmers 'uneasy'

Featured Promotions

Sponsored Content

rural digi editions 4/9

Digital editions

Read our rural publications online