The New Zealand Government forecast for primary export revenue for the year ending June has been downgraded by more than NZ$1 billion due to a stronger Kiwi dollar and likely weaker meat, wool and dairy prices. Source: NZ Herald
The Ministry for Primary Industries’ latest economic outlook report said its economists had revised down their December 2019 forecast for the year ending June 2021 by nearly NZ$1.4b.
Total primary export revenue for the June 2021 year was now forecast to fall 1% to NZ$47.5b, rising to NZ$49.2b in 2022.
MPI said export revenue for the year ended June 2020 had exceeded its previous, pre-Covid forecast by NZ$131 million. A weak Kiwi dollar contributed to this.
Log export prices were expected to remain near current levels for longer than forecast pre-COVID.
Primary industry exports rose 3.6% in the year ended June 2020 to reach NZ$48b despite the forestry, seafood and meat and wool sectors being among the most significantly impacted by COVID lockdowns, both in New Zealand and overseas, said MPI.
Forestry exports were expected to increase 8.1% to NZ$6b for the June year due to strong demand for logs from China and for sawn timber by the US.
