NZ Primary Exports Set to Reach Record $64.3 Billion
New Zealand’s food and fibre sector is on track to deliver record export earnings, with export revenue forecast to reach $64.3 billion in the year ending 30 June 2026.
Agriculture Minister Damien O’Connor says the report showed an increase of close to 10% on the previous year.
“This is a tremendous result for the sector as farmers, growers and others in the supply chains who play such a critical role in our economy. They have continued to deliver quality products for Kiwis and overseas consumers while navigating global disruption and uncertainty,” he says.
O’Connor says New Zealand’s overseas markets demand high quality products made with care and the SOPI report indicates exporters are responding to that.
“To that end, the Government is investing to support farmers and growers to deliver food and fibre with low emissions and high sustainability, which will provide us economic security.”
He says the report, released by the Ministry for Primary Industries (MPI), forecasts significant growth across the majority of food and fibre exports.
“Dairy export revenue is on track to reach a record high of $21.6 billion in the year to 30 June 2022, which is a 13 per cent increase on the previous year,” O’Connor says.
He says meat and wool export revenues are also expected to increase to $12.2 billion, an 18% rise on last year.
“Horticulture sector revenue continues to grow and is set to hit $6.7 billion in exports with our kiwifruit and wine performing well.”
Meanwhile, Forestry Minister Stuart Nash says lower export volumes triggered by global freight congestion has impacted export revenue for New Zealand logs and forest products this year.
“Exports of our logs and forest products is expected to dip slightly on the previous year, reaching $6.2 billion by 30 June 2022, a small drop of 4 per cent. However, we expect demand to pick up from next year as infrastructure projects resume and freight issues ease,” he says.
“I want to acknowledge the forestry sector’s commitment and hard work in keeping their operations running over the course of a difficult year. The sector has impressively addressed the challenges that have arisen due COVID-19, but forecasts show brighter days are ahead.”
O’Connor says looking further ahead there is cause for optimism.
“The SOPI forecasts export revenue will continue to grow to $56.8 billion in the year to 30 June 2026,” he says.
He says that supporting this revenue growth is the Government’s trade agenda, including the recent free trade agreement (FTA) with the UK, the upgrade to the FTA with China, and negotiations with the EU on an FTA.
“We should be optimistic for ongoing success, while acknowledging the challenges of the last six months, such as supply chain disruption and rising costs of inputs across all sectors of production, driven in large part by high international oil and fertiliser prices.
“The basis for my optimism is our primary sector’s strong history of innovating and adapting to changing markets. It’s what has made us world-leaders and will keep us as world-leaders,” O’Connor says.
