Record exports tipped

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