New Zealand ministry expects primary exports to rise 12% in 2024-25.

New Zealand ministry expects primary exports to rise 12% in 2024-25.

New Zealand's primary exports are expected to rise by 12% in the year ending June 2025, according to the latest Situation and Outlook for Primary Industries (SOPI) report [1]. The Ministry of Primary Industries (MPI) forecasts export earnings to reach $59.9 billion, a significant improvement over the previous year's projection of $56.9 billion.

The report highlights strong global demand and healthy prices in key markets as the primary drivers behind this growth. The agriculture and forestry sector, in particular, is expected to see robust performance, with dairy exports projected to increase by 16% to a record high of $27 billion, meat and wool by 8% to $12.3 billion, horticulture by 19% to $8.5 billion, forestry by 9% to $6.3 billion, and seafood by 2% to $2.2 billion [2].

Todd McClay, the Minister of Agriculture and Forestry, attributed the positive outlook to the hard work of farmers and New Zealand's global reputation for high-quality, safe food. He noted that the sector's resilience is a testament to the country's ability to innovate and produce high-value products [2].

Despite the positive projections, the report also acknowledges ongoing global trade uncertainties and the potential impact of tariffs. However, the MPI remains optimistic about the sector's ability to continue growing, citing trade deals with the EU, United Arab Emirates, and Gulf Cooperation Council, as well as ongoing negotiations with India [3].

McClay emphasized the importance of farmers' efforts to add value to their products, such as selling ready-to-eat burger patties to China, which has led to increased returns for farmers. He also highlighted the launch of a government-backed grass certification standard for dairy and meat exports, which is expected to appeal to markets in China and other parts of Asia [3].

In conclusion, the latest SOPI report paints a positive picture for New Zealand's primary exports, with a projected 12% increase in revenue for the 2024-25 year. Despite global trade uncertainties, the sector's resilience and the government's efforts to open new markets and promote sustainable practices are expected to support continued growth.

References:
[1] https://www.nzherald.co.nz/business/companies/agribusiness/new-zealand-primary-exports-set-to-hit-record-60b-ministry-for-primary-industries/D6JNW75KRVDUNGV7DUF5SPTIMM/
[2] https://www.rnz.co.nz/news/business/563852/ministry-of-primary-industries-forecasts-export-revenue-increase-of-12-percent-for-food-fibre-sector
[3] https://www.rnz.co.nz/news/business/563887/us-china-trade-deal-welcome-relief-for-kiwi-exporters-minister