Wednesday, 12 December 2012 10:57

Tough going for primary products

Written by 

Total primary sector export revenue for the year to June 2013 is forecast to be around $27.5 billion, down 5% on the previous year's income ($29.2 billion), says the Ministry for Primary Industries.

The Ministry for Primary Industries has released a half-year update to the annual Situation and Outlook for Primary Industries report, which it published in June.

The deteriorating global economic conditions are having a significant impact on returns for New Zealand's primary products, MPI says.

The update shows there has been strong pastoral production so far in the 2012/13 season. "This is partly due to favourable climatic conditions during the previous season which left breeding stock in good condition, and also ongoing expansion of the dairy herd," says Chris Jones, the manager of Economic Information and Analysis for MPI Sector Policy.

However, MPI reports the continuing economic slowdown, particularly in the traditional markets of the European Union, is causing weaker demand for some New Zealand products such as lamb.

And the strengthening of the New Zealand dollar against most major trading currencies in recent months is having a dampening effect on farm-gate returns for primary produce.

Key points for the main sectors:

• International dairy prices are expected to recover over the remainder of the 2012/13 dairy season and beyond.
• Lower lamb prices are expected, resulting from weaker demand in key European markets.
• Beef prices are expected to remain firm over the next two years, following a major drought in North America affecting production there.
• The forestry sector will remain squeezed over the next few years, due to subdued demand from major export markets – export volumes are expected to hold up, but some product prices will not.
• Horticultural exports are on track to reach $3.5 billion in export earnings in the year to March 2013, with higher in-market prices expected to offset lower volumes of kiwifruit and wine.
• The bacterial vine-killing disease Psa-V has spread to nearly all kiwifruit growing regions, and will adversely impact gold kiwifruit exports in the year to March 2014.

More like this

Biosecurity award for M. bovis work

A small company which mobilised veterinarians around the country to deal with Mycoplasma bovis was one of the winners in this year's Biosecurity Awards, held at Parliament.

Frontline biosecurity 'untouchable'

Biosecurity Minister Andrew Hoggard has reiterated that 'frontline' biosecurity services within Ministry for Primary Industries (MPI) will not be cut under the Government's plan to reduce the public service.

Farmers fined for cattle abuse

A Waikato cattle farming family have been fined $23,000 for failing to provide sufficient food and care for their animals, resulting in more than half a dozen animal deaths.

More!

OPINION: As this old mutt suggested in the last issue, MPI looks a very good candidate for some serious public sector savings that the government is currently looking for.

Fat to cut

OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an 8-hour marathon hearing.

Featured

Demand for food support increases

New findings from not-for-profit food supply and distribution organization, the New Zealand Food Network (NZFN) have revealed a 42% increase in demand for food support in 2023 compared to 2022.

Herd production performance soars

New data released by LIC and DairyNZ shows New Zealand dairy farmers have achieved the highest six week in-calf rate and lowest notin- calf rate on record.

Council lifeline for A&P Show

Christchurch City Council and the Canterbury Agricultural and Pastoral Association (CAPA) have signed an agreement which will open more of Canterbury Agricultural Park for public use while helping to provide long-term certainty for the A&P Show.

Rural Advocacy Hub announced for Fieldays

This year’s Fieldays will feature a Rural Advocacy Hub - bringing together various rural organisations who are advocating for farmers and championing their interests as one team, under one roof, for the first time.

Struggling? Give us a call

ASB head of rural banking Aidan Gent is encouraging farmers to speak to their banks when they are struggling.

National

Rural Change to merge with RST

The Rural Change programme, providing free private mental health professional sessions to the rural industry, is set to continue its…

Machinery & Products

Factory clocks up 60 years

There can't be many heavy metal fans who haven’t heard of Basildon, situated about 40km east of London and originally…

PM opens new Power Farming facility

Morrinsville based Power Farming Group has launched a flagship New Zealand facility in partnership with global construction manufacturer JCB Construction.

» Latest Print Issues Online

The Hound

Cut with care

OPINION: The new government has clearly signalled big cuts across the public service.

Bubble burst!

OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter