New Zealand’s record food and fibre export revenue is projected to reach new record highs, helping protect New Zealanders from the sharp edges of the global downturn said NZ Minister of Agriculture Damien O’Connor. Source: Timberbiz
The Situation and Outlook for Primary Industries (SOPI) released by the Ministry for Primary Industries shows food and fibre export revenue is forecast to grow to a record level of NZ$55 billion this year.
“Accelerating our export growth is a major cornerstone of the Government’s economic recovery plan, and today’s report shows further evidence that plan is working,” Damien O’Connor said.
“Despite the global economic storm gathering, the latest SOPI results show our food and fibre export revenue continuing to climb.
“There is some comfort knowing demand for food and fibre should remain strong throughout any global economic downturn, so New Zealand’s economy remains better positioned when compared to others, so long as we maintain our international competitive edge.
“The forecast increase of 4% in the year to 30 June 2023 is on top of our record export revenue achieved last year, and NZ$2.9 billion higher than earlier forecasts made in June 2022.
“Dairy remains our largest export, with revenue forecast to grow 6% to a new high of NZ$23.3 billion. Our sheep and beef sector remains strong, with red meat and wool revenue tipped to increase to a record NZ$12.4 billion.
“Horticulture export revenue is expected to grow 5% to NZ$7.1 billion, and strong demand for our processed food and other products is expected to drive 3% growth to NZ$3.3 billion.
“We also expect arable export revenue to grow 5% to NZ$265 million.
“The six new trade agreements and upgrades we’ve secured since 2017, alongside the successful trade missions led by the Prime Minister across five countries, will drive growth of our food and fibre sector into the future.
“We know this is a tough time for Kiwis who are experiencing cost of living pressures and rising interest rates but continuing our export growth means New Zealand is even better placed in a challenging global environment,” Damien O’Connor said.
Forestry Minister Stuart Nash said forestry export revenue was expected to increase this year, despite the tough global economic environment.
“Forestry export revenue is set to increase to NZ$6.6 billion in the year to 30 June 2023,” Stuart Nash said.
“This result is to be commended and the forestry sector should be acknowledged, especially over a tough year and in the face of a global slowdown in construction and corresponding lower demand for our logs. It shows remarkable resilience.”
