The primary sector is expected to contribute a record $52.2 billion in food and fibre export earnings for the year to June 30, despite facing an extraordinarily volatile set of pressures, the Ministry of Primary Industries (MPI) says.
In its latest situation and outlook report for primary industries, the ministry outlines those pressures, such as fertiliser prices at a 15-year high, energy prices increasing at a rate last seen in 2008, supply chain and logistic chokepoints, the disruption of China’s Covid lockdowns, soaring inflation, labour shortages and global uncertainty centred on the war in Europe.
The primary sector has also had some things going in its favour, such as higher commodity prices, a depreciating New Zealand dollar which makes our exports more affordable, strong global prices for dairy and meat, and a historic free trade agreement with Britain.
Its strong performance is expected to ease back over the next two years, with the sector’s earnings forecast to hold steady at around $52b through to 2024, before climbing to more than $56b in 2026.
Source: stuff.co.nz
