Arable sector buoyed by 30pc lift in production in three years

A combine harvester unloads barley on a farm in Dorie in Canterbury. Photo / 123RF

RNZ

New Zealand's arable sector appears to be on a roll, with production increasing by 30 per cent in the past three years.

Arable production includes wheat, barley and maize for humans and animals to eat and seeds for sowing.

Last year those farmers produced crops worth $1 billion and production and sales from the entire sector, including milling and further production, were worth $2b, while more than 7500 people were employed.

The Arable Food Industry Council secretary Thomas Chin said arable producers flew below the radar but were vitally important to New Zealand's economy, both locally and for exports.

"The primary sector really starts with us," he said.

"Everything starts with a seed and we get that piece right, then the value chain further on down from us is also in a good space.

"Our industry sector also is a key supplier to arrange downstream industries, such as the milling and baking industries, and pretty much all of the beer brewed in New Zealand is brewed from domestically produced barley."

The production of seeds for sowing has leapt 40 per cent in the past three years and Chin said exports of seeds like ryegrass, clover, carrots and radish went to more than 60 markets.

Chin said New Zealand competes with Denmark and the United States when exporting things like rye-grass seed.

"We're up against some tough competition from the Northern Hemisphere.

"But what's happened in recent seasons, those particular markets have had drought and climatic extremes, which has perhaps given an opportunity for New Zealand to help replenish inventory levels in the Northern Hemisphere.

"So we've done very, very well in the preceding years, but the more interesting thing is the forecast for the next two to three years, and it's looking very, very bullish for the views of export markets."

Chin said there was also great growth potential for New Zealand's vegetable seeds in the Asian markets.

- RNZ