WELLINGTON: New export figures for the primary sector show solid growth, with gains across the sector more than making up for recent declines in dairy prices, says Primary Industries Minister Nathan Guy. “The Situation and Outlook for Primary Industries released today show export revenue is expected to reach $36.7 billion in the year to June 2016, a rise of $1 billion from a year ago. “This is a 3% increase and a pleasing result given the global volatility in dairy prices. It shows we have a broad and diversified primary sector.
“Horticulture is the star performer with export revenue growing by 20% from June 2015 figures and estimated to exceed $5 billion for the first time by June 2016. Kiwifruit, wine, apples and pears are driving this success. “There is also strong growth from seafood with a 15% increase in export revenue, and 14% growth for both arable and other primary sector exports and foods.
“It’s also pleasing to see forestry export revenue reaching $5 billion, an increase of 8% from last year. Increased demand from China and a lower New Zealand dollar are helping the industry grow.” “Dairy export revenues is down 6% which is disappointing but no surprise given the global volatility in dairy prices. Issues like Russia’s trade sanctions, the removal of EU dairy quotas and low oil prices have all had an impact. “However the Ministry for Primary Industries expects dairy export prices to gradually rise from December as global demand and supply begin to rebalance. “Overall MPI expects total growth in primary sector export revenue of just under 20% over the next four years which shows as a whole the sector is in good health.”
