fbpx
Print this page
Monday, 05 March 2012 16:39

Dismal summer boosted economy

Written by 

Recent releases by Statistics New Zealand point to a bumper export performance led by our farm system, largely due to a wetter summer which allowed many regions to increase productivity. However, some dark clouds are gathering.

"New Zealand's big six agricultural exports have grown in export value by an amazing $2.6 billion over the past year," says Bruce Wills, Federated Farmers president and its economics and commerce spokesperson.

"Despite the occasional weather bomb, such as the weekend's storm, wrecking havoc, the summer of 2012 may go down as the dismal summer that boosted the economy.

"The increased value of dairy, meat, wood, fruit, fish and wine exports this season is more than all the revenue generated by Telecom.

"This increased export value provides 2.6 billion reasons why New Zealand needs to safeguard and maximise its agricultural potential.

"Merchandise export volumes right now are at their highest in 22 years and New Zealand's merchandise exports are up 13% on January 2011.

"Dairy remains a star with its export receipts up 17% on 2011.

"In December, Fonterra was packing an export container every 2.7 minutes. Because January and February were mild and damp in most regions, we can expect record numbers given milk production was up around 10% on 2010/11.

"Wool has also increased its export receipts by 29.6% over last year. The $818 million it generated in the year to January 2012 is an increase of $187 million. While we know meat production volumes are down, its value is up.

"However, there are dark clouds on the horizon.

"There are growing tensions in the Middle East as well as economic woes in Europe; the two could collide nastily.

"Most economic forecasts expect commodity prices will ease over 2012, with particular pressure on meat.

"The dismal summer proves the value of water. Without guaranteed access to water, increased production rests in the lap of the gods.

"While Federated Farmers has achieved significant policy success in getting water storage and rural broadband on the table, there's still much to be done.

"It also should be noted, that while February's cool, wet weather has benefitted many farmers, it has not helped Canterbury's arable farmers with harvesting. The dry summer in Southland and Otago also means there is a prospect of winter feed shortages unless the region has a benign autumn.

"We still hope the Kiwi dollar will remain in line with the fall in commodity prices, but so far there hasn't been much evidence of this in 2012. If it doesn't dip as it should, we could face some big challenges," Wills says.

More like this

Farmers urged to prepare as heavy rain looms

With adverse weather set to rain down on the Top of the South, the Bay of Plenty and parts of Northland, Agriculture Minister Todd McClay says farmers, foresters, and growers need to prepare for possible challenges.

We're OK!

OPINION: Despite the volatility created by the shoot-from-the-hip trade tariff 'stratefy' being deployed by the new state tenants in the White House, farm commodity prices are holding their own.

Featured

NZ household food waste falls again

Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.

Editorial: No joking matter

OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.

DairyNZ plantain trials cut nitrate leaching by 26%

DairyNZ says its plantain programme continues to deliver promising results, with new data confirming that modest levels of plantain in pastures reduce nitrogen leaching, offering farmers a practical, science-backed tool to meet environmental goals.

National

Machinery & Products

Tech might take time

Agritech Unleashed – a one-day event held recently at Mystery Creek, near Hamilton – focused on technology as an ‘enabler’…

John Deere acquires GUSS Automation

John Deere has announced the full acquisition of GUSS Automation, LLC, a globally recognised leader in supervised high-value crop autonomy,…

Fencing excellence celebrated

The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards,…