Tuesday, 22 June 2021 07:55

Primary exports soaring - report

Written by  Peter Burke
The latest Ministry of Primary Industries (MPI) Situation and Outlook Report for Primary Industries predicts that primary exports could reach a record high of $49.6 billion in the next 12 months. The latest Ministry of Primary Industries (MPI) Situation and Outlook Report for Primary Industries predicts that primary exports could reach a record high of $49.6 billion in the next 12 months.

Revenue from primary exports is predicted to reach a record high of $49.6 billion in the next 12 months - all being equal.

The latest Ministry of Primary Industries (MPI) Situation and Outlook Report for Primary Industries says this is likely to rise to $53.1 billion by 2025, but in the present Covid-19 environment the word 'depends' should also be highlighted.

Released last week at the National Fieldays in Hamilton, the report notes that export returns in th 2020-21 season have suffered as a result of the pandemic with the traditional big ticket earners of except dollars - dairy and meat - down on the previous year. Only horticulture and forestry made any appreciable gains with consumer demand for wine and fruit strengthening and demand by China for logs the same.

For dairy the 2020-21 season was the first full season to be hit by the pandemic and it's not surprising that revenue from dairy took a bit of tumble on the previous season being down by 5.4% to $19 billion in the year ending June 2021. It has been a hard season with disruptions to supply chains and considerable global commodity price volatility. But there are good trends with dairy commodity prices lifting in recent months.

On the home front, favourable weather in most dairy regions in the country saw good pasture growth and overall milk production in New Zealand for the 20/21 season is expected increase by 1.9% on the previous year to a record high of 1,933 million kgMS.

The report describes these results as outstanding given that cow numbers continued to decline - now 4.83 million. In line with this trend MPI believes there will be a small ongoing decrease in the amount of land uses for dairy farming. It says there have been next to no dairy conversions in the past two years and some dairy land is going into horticulture - avocados and kiwifruit - and some into lifestyle blocks. But despite these factors, MPI is forecasting milk solids production for the coming season to rise marginally due to better cow genetics and better farm management practices. In essence, efficiencies on farm are showing up in the statistics.

Although there have been some negative perceptions about China this country remains the primary destination for our dairy products - taking close to 40% of these. What's more the strength or otherwise of the Chinese market virtually dictates the farmgate milk price.

Increased demand by China for our dairy products, says the report, is driven by several factors including their consumers seeking healthy products of which dairy is one. There are also other internal factors in China which have led to that country taking more of our exports. But MPI warns that the long term goal of China is greater self-sufficiency in food and over time that may impact on our trade there.

Overall the report paints a positive outlook for the future, but in a Covid environment certainty is not a word one would use.

More like this

On to it!

OPINION: MPI employs more than 3,600 staff in 45 locations around the country and internationally.

Irish show how it's done

MPI director general Ray Smith reckons NZ has a lot to learn from the Irish Agriculture and Food Development Authority – called Teagasc (pronounced ‘Chog us’).

Featured

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as possible.

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Alliance's Pure South cuts win gold

Meat co-operative Alliance Group has bagged four gold medals at the Outstanding NZ Food Producer Awards, achieving top honours for every cut entered.

Dairy demand on the rise

There is increasing evidence that dairy demand is on the upswing, according to Rabobank senior agricultural analyst Emma Higgins.

Fert use tumbles as prices spike

Fertiliser use in New Zealand over the 18 months is about 25% down from what it consistently was for the previous decade or more, says Ravensdown chief operating officer Mike Whitty.

National

Waikato dryer sold

An independent milk spray dryer in Hamilton, destined for liquidation, has been bought by a South Auckland goat milk processor.

Machinery & Products

Samasz sets its sights high

Since its arrival in New Zealand, Polish mower manufacturer Samasz, currently celebrating 40 years in business, has carved a niche…

Trojan keeps on going

The DR200 Trojan farm two-wheeler motorcycle was introduced over 28 years ago, when the engineering team at Suzuki New Zealand…

Still going strong!

The saying goes ‘if it ain’t broke -don’t fix it’, so it’s no surprise to see an old favourite in…

» Latest Print Issues Online

Milking It

'A complete dog

OPINION: It's not just a rural banking inquiry that farmers want. Freshwater farm plans are another major headache for farmers.

Action, not words

OPINION: The new Government may be farmer friendly, but it's not love, rather action that farmers want.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter