Primary Industries Ministers Damien O’Connor, David Parker, and Stuart Nash said today that export revenue from New Zealand’s food and fibre sector is forecast to hit a new high of $52.2 billion in the year to 30 June 2022.
“According to the current Situation and Outlook for Primary Industries (SOPI), this will be the first time we’ve exceeded $50 billion in food and fiber exports, up over 10% ($4.6 billion) from the prior year,” Agriculture Minister Damien O’Connor stated.
“As farmers, producers, and those in the supply chain who play such a key role in our economy, this is a fantastic result.”
Despite global turbulence and uncertainty, they have continued to supply high-quality products to Kiwis and international customers.
“Our international markets are demanding high-quality, well-made products, and this research shows that our exporters are reacting to these market signals.”
To that purpose, the government is investing to help farmers and producers produce food and fiber that is low in emissions and long-lasting, ensuring our economic security.”
According to Damien O’Connor, the Ministry of Primary Industries’ (MPI) SOPI forecasts strong growth in the majority of our food and fiber exports.
“Dairy export revenue is expected to hit a new high of $21.6 billion in the fiscal year ending June 30, 2022, up 13% from the previous year,” Damien O’Connor said.
“Export revenue from meat and wool is predicted to rise by 18% to $12.2 billion in 2021.
“Our kiwifruit and wine are performing well, and our horticulture sector revenue is on track to reach $6.7 billion in exports,” Damien O’Connor said.
Seafood exports have recovered from international food service interruptions, according to Minister of Oceans and Fisheries David Parker.
“In the year ending June 30, 2022, our seafood exports are forecast to reach $1.9 billion, up 9% from the previous year.”
“Our seafood exports are expected to hit $1.9 billion in the year to 30 June 2022, an increase of 9 per cent on the previous year,” David Parker said.
“We’re seeing good progress in the export recovery of our seafood sector, and export revenue is expected to be close to pre-COVID-19 levels.
“This most recent forecast should give the seafood sector reason to be optimistic as it continues to provide high quality products into international markets where there is tight supply.”
Forestry Minister Stuart Nash said lower export volumes triggered by global freight congestion affected export revenue for New Zealand logs and forest products in the year to 30 June 2022.
“Exports of our logs and forest products is expected to dip slightly on the previous year, reaching $6.2 billion by 30 June 2022, a small drop of 4 per cent. However, we expect demand to pick up from next year as infrastructure projects resume and freight issues ease,” Stuart Nash said.
“I want to acknowledge the forestry sector’s commitment and hard work in keeping their operations running over the course of a difficult year. The sector has impressively addressed the challenges that have arisen due COVID-19, but forecasts show brighter days are ahead.”
Associate Minister of Agriculture Meka Whaitiri said the latest SOPI indicated the Government’s sector roadmap Fit for a Better World was playing a key role in boosting productivity, sustainability and meaningful and rewarding jobs.
“We are seeing Māori agribusiness playing a vital role in Aotearoa’s food and fibre sector, contributing to the social and economic development of Aotearoa, and also as significant contributors to New Zealand’s export success,” Meka Whaitiri said.
Damien O’Connor said looking further ahead there was good cause for optimism.
“The SOPI forecasts export revenue will continue to grow to $56.8 billion in the year to 30 June 2026,” Damien O’Connor said.
“Supporting this is the excellent momentum of the Government’s trade agenda, which has seen us sign our historic free trade agreement (FTA) with the UK, upgrade our China FTA and progress negotiations on an EU FTA.
“We should be optimistic for ongoing success, while acknowledging the challenges of the last six months, such as supply chain disruption and rising costs of inputs across all sectors of production, driven in large part by high international oil and fertiliser prices.
“The basis for my optimism is our primary sector’s strong history of innovating and adapting to changing markets. It’s what has made us world-leaders and will keep us as world-leaders,” Damien O’Connor said.
Read the latest Situation and Outlook for Primary Industries here.