Strong prices and high demand for dairy products are expected to deliver $20.9 billion in export revenue for New Zealand. In total, the primary sector is projected to deliver $50.8 billion in revenue by June 30 2022.
Revenue from New Zealand’s food and fibre exports is projected to jump 6% from last year reach a record $50.8 billion in the year to 30 June 30, 2022.
The new forecast from the Situation and Outlook for Primary Industries (SOPI) publication released this morning showed healthy growth across the majority of the food and fibre exports and showed the future of the food and fibre sector is bright, Agriculture Minister Damien O’Connor said.
It was the first time annual food and fibre export revenue had cracked $50 billion. O’Connor said it was a result to be proud of as the country navigates the challenges of covid-19.
“The performance reported in this latest SOPI is a testament to the sector’s huge efforts to keep the wheels of our national and local economies turning and supply essential products.”
O’Connor said the sector was meeting strong demand as consumers around the world increasingly looked to healthier food and natural fibres with strong environmental credentials.
“High demand for our dairy products combined with strong export prices are expected to deliver an estimated 10% increase in dairy export revenue to $20.9 billion.
“Meat export revenue is forecast to increase by 6% to $11.1 billion, driven by recovering export prices and demand for our meat products that are helping to fill the global protein shortage.”
O’Connor said horticulture export revenue was expected to increase as well.
“Consumers can’t get enough of our fresh fruit and wine with demand remaining strong. This is driving an expected increase in export revenue of 5% to $6.9 billion.”
Forestry Minister Stuart Nash said the outlook for forestry exports was strong.
“We’re seeing continued, strong demand for New Zealand logs from China and for sawn timber from the United States.
“Forestry exports are expected to reach $6.7 billion in the year 30 June 30, 2022, an increase of 3% on the previous year. This is only possible because of the resilience of our forestry businesses and their massive efforts to get back on track and tackle the challenges brought about by covid-19,” Nash said.
Oceans and Fisheries Minister David Parker said seafood exports were recovering from the challenges posed by covid-19, such as the disruption to food service.
“Seafood export revenue is forecast to rise 4% to $1.9 billion in the year to June 30, 2022, as countries open up and food service resumes,” Parker said.
“The growth forecast in this SOPI is promising, reflecting the seafood sector’s continuing success providing high-quality seafood to international markets.”
O’Connor said it was important to acknowledge the hard work of rural New Zealand and to celebrate the performance and successes in the latest SOPI.
“We’ve been very fortunate to have had an economy that’s kept ticking due to our health-focused covid-19 response, which has been backed by New Zealanders.
“Together we’ve kept ourselves safe so we can continue to do business, and this SOPI points to the benefit of these efforts,” O’Connor said.
