Exports tipped to grow $1.7b

Exports of rock lobster and logs took a multimillion-dollar hit during lockdown but the outlook for New Zealand’s primary sector isn’t all doom and gloom.

In fact, exports from the sector are on track to grow by $1.7 billion this year, according to the Ministry for Primary Industries.

The ministry released an economic update for the primary industries last week, in place of its usual quarterly Situation and Outlook report. The update showed year-todate primary industries export revenue was tracking 4.5 per cent ($1.7b) higher than last year.

Agriculture Minister Damien O’connor said the predicted growth would help underpin New Zealand’s Covid-19 recovery.

‘‘Overseas consumers are now more than ever looking for healthy, New Zealand-made food. We’ve seen that with the sustained demand for fresh fruit, particularly in Europe and North America, and the strong demand for red meat in China,’’ O’connor said.

‘‘Our farmers and growers are in a strong position to help us reboot our economy.’’

Provisional trade data from Stats NZ showed live exports of rock lobster (crayfish) slumped by 82 per cent (nearly $38 million) from February to April, compared to the same period last year.

Other species hit hard included farmed salmon and deepwater species such as hoki. However, Fisheries Minister Stuart Nash said the lucrative Chinese market was showing signs of recovery.

Forestry exports had been hit since the start of alert level 4, with revenue down 39 per cent ($434m) overall compared with the same period last year.

Other sectors emerged from lockdown in much better shape.

Dairy exports had been particularly strong since early March, up $512m (12 per cent) compared to the same time last year.

Chinese meat imports had surged in the second half of 2019 and the animal protein shortage due to the African swine fever outbreak in China, should help support prices, the update said.

The apple and kiwifruit export seasons had got off to a strong start, with revenue up $274m (18 per cent) on last year since March.

O’connor said New Zealand’s Covid-19 response ‘‘gives us a headstart on the world as we get our economy moving again’’.