The latest Situation and Outlook for Primary Industries has New Zealand’s primary sector is on track to reach a record $52.2 billion for the financial year ending June 30, 2022.
It will be the first time the sector has reached more the $50b for food and fibre exports, an almost 10% increase on the previous year, Agriculture Minister Damien O’Connor said.
“This is a tremendous result for the sector as farmers, growers and others in the supply chains who play such a critical role in our economy. They have continued to deliver quality products for Kiwis and overseas consumers while navigating global disruption and uncertainty.
“Our markets abroad are demanding high-quality products that are made with care, and this report indicates our exporters are responding to these market signals.
“To that end, the Government is investing to support farmers and growers to deliver food and fibre with low emissions and high sustainability, which will provide us economic security.”
It had not been an easy year for the sector as it dealt with the ongoing impacts of covid-19 on supply chains, workforces as well as cost increases on inputs.
“But SOPI is a cause for much optimism,” he said.
Dairy export revenue is on track to reach a record high of $21.6b, a 13% increase on the previous year, meat and wool export revenue is expected to lift 18% to $12.2b and horticulture is set to hit $6.7b in exports, an increase of 2%.
“The basis for my optimism is our primary sector’s strong history of innovating and adapting to changing markets. It’s what has made us world-leaders and will keep us as world-leaders.”
Damien O’Connor
Agriculture Minister
Seafood exports are expected to increase 9% to hit $1.9b and forestry exports are expected to dip slightly on the previous year, reaching $6.2b, a small drop of 4%.
O’Connor said looking further ahead there was further cause for optimism with SOPI forecasting export revenue to grow to $56.8b in the year to June 30, 2026.
Supporting this was momentum in the Government’s trade agenda, including its free trade agreement (FTA) with the United Kingdom, and upgrade of New Zealand’s China FTA and progress negotiations on an EU FTA.
“The basis for my optimism is our primary sector’s strong history of innovating and adapting to changing markets. It’s what has made us world-leaders and will keep us as world-leaders,” O’Connor said.
Associate Minister of Agriculture Meka Whaitiri said sector had kept the economy afloat over a tough couple of years.
Māori agribusinesses were also playing a vital role in Aotearoa’s food and fibre sector, contributing to the social and economic development of Aotearoa, and are a significant contributor to New Zealand’s export success, Whaitiri said.
