Record exports tipped for farmers, growers

Primary industry exports are forecast to hit a record high of $55 billion next year according to new data released by the Ministry of Primary Industries.

If that comes to pass, the value of exports will be $2.9b higher than forecast in June.

The latest situation and outlook for primary industries – SOPI – released by the ministry – forecasts a 4% increase in exports by value for food and fibre for the year.

‘‘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,’’ Minister for Agriculture and Trade Damien O’connor said in a statement.

However, the bumper figure comes against a backdrop of global inflation which has driven prices – as well as many agricultural and horticultural input costs – higher over the past year.

‘‘We must also acknowledge the international cost pressures impacting our farmers and growers here at home. While they’re easing in some areas, we need to continue supporting farmers where we can, to grow the value of our exports and maintain our competitive edge,’’ O’connor said.

‘‘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.’’

Dairy remains New Zealand’s largest export sector with forecast revenue due to hit $23.3b.

Red meat and wool exports

‘‘New Zealand’s economy remains better positioned . . . so long as we maintain our international competitive edge.’’ Damien O’connor

Minister for Agriculture and Trade

are expected to hit a record $12.4b. Horticultural export revenue is also expected to grow 5% to $7.1b and processed food by 3% to $3.3b.

Fisheries, which took a significant hit at the start of the Covid-19 pandemic, also appears to have bounced back and is expected to grow 4% and hit $2b in exports in 2023.

‘‘Our seafood export revenue took a substantial hit at the start of the pandemic, as food service shut its doors around the world, but hard work, combined with strong demand from food service and tourism reopening, is seeing a swift and continued recovery in export revenue,’’ Fisheries Minister David Parker said.

Exports by Mā ori businesses, the majority of which are in the food and fibre sector, have also climbed by 38% since 2017, to $872 million.

‘‘Our new Rautaki mo te Taurikura action plan will only continue to drive that growth in the years to come,’’ Associate Minister of Agriculture Meka Whaitiri said.

Meanwhile, forestry export revenue is also expected to grow to $6.6b.

‘‘As we head into the festive season, I’d like to acknowledge the more than 360,000 people working in our food and fibre sector and what they’ve achieved for New Zealand over the past year. Their efforts brighten our future,’’ O’connor said.