NZ primary sector exports set for record

Primary sector exports are set to hit a new record. Photo / Alex Cairns

New Zealand’s food and fibre sector is on track to set a new record high, with export earnings expected to hit $56.2 billion by June 2023, the Ministry for Primary Industries (MPI) said.

That would represent a 2.3 per cent increase on earlier projections, MPI said in its latest situation outlook.

Prime Minister Chris Hipkins, in releasing the report at Fieldays, said the economy is through the worst, with inflation having peaked and returning to the target range next year, tourism bouncing back, and record numbers of workers arriving to fill skills shortages.

“The focus on trade and export growth remains a major cornerstone in our economic recovery plan, with the securing of new Free Trade Agreements like the UK & EU, as well as an upgrade to the China FTA,” he said. “These are resulting in more exports and more value being derived.”

Primary Industries Minister Damien O’Connor said primary sector exports looked set to climb to $62b by 2027.

He acknowledged the “extremely challenging” start to the year for the primary sector and the impact of the North Island weather events on some rural communities.

“High input costs, also experienced internationally, have affected farmers and growers, and it’s encouraging to see those pressures easing,” he said.

O’Connor said major growth is projected in several parts of the sector in the year to 30 June 2023, including dairy export revenue to reach $25.1 billion, a 14 per cent increase on the previous year.

Horticulture export revenue is expected to rise 2 per cent to $6.9b.

Exports of processed foods and other products are expected to jump to more than $3.4b in the year to 30 June 2023, up 6 per cent on the previous year.

“Seafood is also one of the major drivers of this positive outlook and is helping to drive record earnings with a forecast increase of 8 per cent to achieve a record $2.1b in the year ending 30 June 2023,” O’Connor said.

“The effects of Cyclone Gabrielle have obviously affected our forestry exports in the short term,” O’Connor said.

“However, they are expected to pick back up as forestry operations recover from the adverse weather and international demand increases.”