Report forecasts primary industry revenue to reach $45.7 billion

At Fieldays today the Agriculture Minister Damien O’Connor released the Ministry for Primary Industries’ Situation and Outlook report for June 2019.

New Zealand’s primary sector exports continue to surpass expectations, with revenue forecast to grow 7.1 per cent on the previous financial year.

At Fieldays today the Agriculture Minister Damien O’Connor released the Ministry for Primary Industries’ Situation and Outlook report for June 2019.

The report forecasts primary industry revenue to reach $45.7 billion for the year to June 2019, slightly above the March 2019 forecast.

Damien O’Connor says this is the second straight year of substantial export growth, with significant gains across most primary industry products.

“Export performance is up nearly $7.5 billion over the last two years. That’s incredibly impressive considering the weakening global economic environment and a rising sense of uncertainty in global markets,” he says.

“Sustained demand from China and South East Asia is supporting prices for dairy exports.

“Horticulture and pasture-based production excelled in most areas, with red meat weights and milk production both high and kiwifruit production up 25 percent on the 2018 harvest.

“Growers are anticipating good demand for New Zealand apples from the UK and continental Europe, as well as China, following the market success of new varieties.’’

Mr O’Connor says that over the next year, a focus on higher value products, combined with ongoing favourable exchange rates, is expected to support export revenue growth.

“I’m really pleased to see New Zealand’s primary sectors succeeding through investment in innovation and focusing on a move away from volume to value.

(With Inputs from New Zealand Government Press Release)