The Ministry for Primary Industries has raised its forecasts for exports of dairy products, meat and forestry, citing growing demand and limited supplies of milk, lower US and European beef production and high prices for logs.
The ministry raised its forecast for total primary sector exports in the year ending June 30 by 15.6 percent compared to its estimates last June to $36.5 billion and its 2015 forecast by about 8 percent to $35.7 billion.
The revisions are led by dairy products, which are seen generating $16.69 billion in the current year, up $2.7 billion, or 19.5 percent from its original forecasts last June. The forecast for meat, pelts and wool was lifted by $1.2 billion, or 22 percent, to $6.6 billion and forestry is revised up by $820 million, or 19 percent, to $5.1 billion.
"New Zealand exporters are able to direct product into emerging markets to meet rapidly growing demand," the ministry said in the report. "This is predominantly increased volume of exports to China."
At the same time, "supply constraints among our major export competitors (are) causing rising prices on international markets. This is largely due to US and EU diminished dairy and beef production."
More modest revisions include a $109 million, or 3.4 percent, increase in horticulture exports to about $3.3 billion for the year ending June 30 and a $52 million, or 3.4 percent gain to $1.58 billion for seafood.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Mortgage rates have bottomed, regardless of further OCR cuts
- Sky will take a gamble and put Westworld, aka 'the next Game of Thrones' on Neon
- Warminger stood to gain significant bonus, court hears
- NZ On Air announces a 'platform-neutral' funding future
- 'Real housewife' lawyers up, accuses Devoy of bullying, defamation
Most listened to
- FMA counsel Justin Smith QC described Mr Warminger’s background and the pressure he was under to perform
- Media Snapchat: NBR’s Nick Grant ponders the Human Rights Commission’s role in RHOAKL racism row
- ASB's Jane Turner discusses what's behind NZ's widest month trade deficit
- Kathmandu's Xavier Simonet and Reuben Casey talk through the retailer's results.
- BNZ's Kymberly Martin and Massey University's David Tripe on mortgage rates.