According to forecasts by the Ministry for Primary Industries (MPI), NZ food and fibre export revenue will likely drop 5% in the current financial year. The drop comes after the year to June 30 exceeded expectations, with an 8% increase to $57.4 billion, MPI’s Situation and Outlook for Primary Industries report states.
The predicted drop to $54.3b is due to weaker export revenue for New Zealand’s three largest sectors: dairy, providing 45% of export revenue, meat and wool, providing 21%, and forestry, providing 11%.
“However, revenue growth for some smaller and emerging seafood and arable sectors is set to limit the overall fall in export revenues,” the report said. “Seafood, kiwifruit, apples and pears, cherries and arable products are forecast to grow export revenue despite headwinds.”
Horticulture export revenue to decrease 1% to $7 billion, primarily driven by lower volumes of wine and vegetables. Prices are forecast to be supported by strong global demand and constrained global supply. Increased yields are expected to bring a lift in kiwifruit revenue and apple crops are likely to improve.
Source: stuff.co.nz