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Deteriorating global economic conditions are having a significant impact on returns for New Zealand's primary products.
The Ministry for Primary Industries has released a half-year update to the annual Situation and Outlook for Primary Industries report, which it published in June.
The update shows there has been strong pastoral production so far in the 2012/13 season. "This is partly due to favourable climatic conditions during the previous season which left breeding stock in good condition, and also ongoing expansion of the dairy herd," says Chris Jones, the Manager of Economic Information and Analysis for MPI Sector Policy.
However, MPI reports the continuing economic slowdown, particularly in the traditional markets of the European Union, is causing weaker demand for some New Zealand products such as lamb.
And the strengthening of the New Zealand dollar against most major trading currencies in recent months is having a dampening effect on farm-gate returns for primary produce.
As a result, total primary sector export revenue for the year to June 2013 is forecast to be around $27.5 billion, down 5 percent on the previous year's income ($29.2 billion).
Key points for the main sectors:
For more information, go to the full, 12-page half-year update report in the Publications section of the MPI website.
Ph (04) 894 0654 or 029 894 0654
Or call the MPI Medialine: 029 894 0328