Meat and wool exports are forecast to reach $10.4 billion for the year ending June 2020 – 2.5 percent higher than the previous year, according to the Ministry for Primary Industries (MPI).
MPI’s latest Situation and Outlook for the Primary Industries (SOPI) report was released yesterday by Minister of Agriculture and Minister of State for Trade and Export Growth Damien O’Connor. It shows sustained high growth in primary industry exports looks set to continue over the next two years with strong prices predicted for farmers, fishers, growers and rural communities.
The report says the positive outlook for the sector is being driven by very high international meat prices as a result of African Swine Fever (ASF) reducing China’s pork herd and increasing demand for imported protein. Strong schedule prices as a result of international demand have also helped maintain on-farm profitability.
Export revenue from meat and wool is forecast to lift a further 2.4 percent to $10.6 billion in the June 2021 year.
“This latest report shows record results, with revenue up 3.3 percent on the previous year, forecast to reach a record $47. 9 billion for the year to June 2020, says O’Connor.
“Our horticulture sector is set to become the third largest primary sector industry by value, overtaking forestry. Kiwifruit exports alone are expected to rise by 8.6 per cent to $2.5 billon,’’ he said.
The news is good for other sectors:
- Meat and wool exports are forecast to reach $10.4b for the year ending June 2020 – 2.5 percent higher than the previous year.
- Dairy export revenue forecast to rise 8.4 percent to $19.6b.
- A faster recovery in log export prices than expected last quarter has resulted in the forestry forecast being revised upwards of $190m.
During a time of change in the primary sectors, O’Connor says the positive outlook was a testament to each and every person working in the sector.
“Our nation’s farmers and growers produce some of the highest quality food and fibre in the world – and the world knows it. They are bringing home record export returns and that’s something for them to be really proud of.”
The latest Situation and Outlook for Primary Industries is available here.