Food and fibre sector brings $1.2b more to economy than expected

Agriculture Minister Damien O'Connor. Photo / RNZ / Samuel Rillstone

RNZ

Food and fibre sector export revenue has hit new heights, reaching $57.4 billion in the year to June 30, bringing $1.2 billion more into the economy than was originally forecast.

Agriculture Minister Damien O’Connor released the updated Situation and Outlook for Primary Industries report on Wednesday.

He said the new record surpassed the previous forecast released two months ago of $56.2b for the year ending June 2023 and is 8 per cent up on the previous year to June 30, 2022.

“The focus on trade and export growth remains a major cornerstone in our Government’s economic recovery plan, with the securing of new FTAs like the UK and EU, as well as an upgrade to the China FTA,” he said.

“These are resulting in more export opportunities and more value being derived.”

Dairy export revenue reached a record $26b, an increase of 18 per cent on the previous year.

Horticulture was up 4 per cent, seafood 9 per cent and arable 8 per cent.

Meat and wool were down 2 per cent and forestry was down 3 per cent.

O’Connor said the record results showed resilience in global economic headwinds and though prices had come off peaks, exports were forecast to climb to $62b by 2027.

- RNZ