Weaker Chinese demand, lower milk production pose challenges
While dairy remains the biggest export earner for the NZ primary sector, it is facing some challenges in the coming two years.
Dairy remains the largest export, with revenue forecast to grow 6% to a new high of $23.3 billion.
The sheep and beef sector remains strong, with red meat and wool revenue tipped to increase to a record $12.4 billion.
Horticulture export revenue is expected to grow 5% to $7.1 billion.
That’s according to the Situation and Outlook for Primary Industries (SOPI) released today.
Minister of Agriculture Damien O’Connor the record earnings would help protect New Zealanders from the sharp edges of the global downturn says
“Accelerating our export growth is a major cornerstone of the Government’s economic recovery plan, and today’s report shows further evidence that plan is working,” O’Connor says.
”Despite the global economic storm gathering, the latest SOPI results show our food and fibre export revenue continuing to climb.
“There is some comfort knowing demand for food and fibre should remain strong throughout any global economic downturn, so New Zealand’s economy remains better positioned when compared to others, so long as we maintain our international competitive edge.
The forecast increase of 4% in the year to 30 June 2023 is on top of the record export revenue achieved last year, and $2.9 billion higher than earlier forecasts made in June 2022.
O’Connor says strong demand for NZ processed food and other products is expected to drive 3% growth to $3.3 billion.
He also expects arable export revenue to grow 5% to $265 million.
“The six new trade agreements and upgrades we’ve secured since 2017, alongside the successful trade missions led by the Prime Minister across five countries, will drive growth of our food and fibre sector into the future.
“We know this is a tough time for Kiwis who are experiencing cost of living pressures and rising interest rates but continuing our export growth means New Zealand is even better placed in a challenging global environment,” O’Connor said.
