Rural outlook gets thumbs up

By Phil Boeyen, ShareChat Business News Editor

Monday 8th January 2001

Revenue from New Zealand's agricultural sector is projected to rise by 24% over the next five years according to government figures.

The Ministry of Agriculture and Forestry is forecasting agricultural sector revenue will increase from $12 billion to $15 billion by 2005, with the growth coming mainly from dairy, cattle, fruit and agricultural services.

Agriculture Minister Jim Sutton says the projections highlight the productivity of New Zealand's rural sector.

"Rural communities have been under stress for several years, but despite that, they still produce enormous amounts of this country's export earnings. The rural community is the backbone of the New Zealand economy."

The projections estimate that between the year ended March 2000 and the year ending March 2005, overall pastoral export earnings are projected to rise 41%, from $9.4 billion to $13 billion.

This includes meat export earnings rising 23% due to higher prices and dairy exports up 39% on higher prices and increased volume.

During the same time period, overall horticultural export earnings are projected to rise 27% from $1.7 billion to $2.2 billion. Kiwifruit earnings are forecast to grow by 13% and processed fruit by 116%, although apple earnings are expected to fall by 11% due to falls in volume and prices.

Forestry is also tipped to do well, with increasing markets for New Zealand wood and timber products.

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