Farm exports take a hit
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 about $27.5 billion, down 5 per cent on the previous year's income of $29.2b.
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, 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.
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The Dominion Post