The primary industries are continuing to perform well in the face of significant challenges this year, according to the Ministry for Primary Industries (MPI), which says the medium-term outlook is very positive.
The Ministry released the annual Situation and Outlook for Primary Industries report for 2012/2013 this morning, which includes production, trade and pricing statistics for the current season and for three or four years out.
“It’s been a season of two halves for the land-based industries, with many areas impacted by drought in the second half,” says Jarred Mair, MPI sector policy director.
MPI has analysed what impact the drought has had on the primary sector export revenues and this shows a decline for the year to 31 June of $1.3 billion.
“As many commentators have said in the past few months, the challenge to the primary industries is to develop resilience – to protect their ability to produce and export, as well as to add value.
“This will help meet the goal that MPI has set, which is to help the sector double the value of primary sector exports by 2025.”
According to the report, MPI expects primary sector revenues will increase 2.2 percent to $24.1 billion in the year to June 2014 and to grow at a compound annual growth rate to $29.5 billion in 2016/2017.
“This outlook is based on maximising opportunities in Asian markets, recovery from the global recessions and an assumption of a slightly lower New Zealand dollar against trading currencies.”
The report shows that the dairy sector is expected to steadily grow and that the meat industry faces challenging times ahead, as drought impacts have added to existing competitive pressure for land use.