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20 December 2005
After mixed fortunes during the last 12 months, New Zealand's primary
sectors should brace themselves for a tougher year ahead, according to Ministry
of Agriculture and Forestry (MAF) forecasts.
Prospects, however, are looking less bleak for 2007, with improvement
expected in revenue and profitability across all sectors as production and
demand in key export markets improve.
The Ministry has just released its annual Situation and Outlook for New
Zealand Agriculture and Forestry (SONZAF) report.
MAF Policy's Manager of Monitoring and Evaluation, Peter Gardiner says
the last year has been good for dairy and meat farmers and wine growers, who
have benefited from stronger international prices and premium product
positioning in key export markets.
Other sectors, especially foresters, apple growers and deer farmers, have
struggled with declining international prices, higher costs, a stronger New
Zealand dollar and other difficult market conditions.
Peter Gardiner says the supply and demand conditions that favoured much of
the pastoral sector are expected to decline over the next year. Future
profitability, he says, will also be affected by higher costs and greater
exposure to the high New Zealand dollar.
The report forecasts an upturn in 2007 as production and demand in key
exports improve, the New Zealand dollar weakens and international oil prices
ease, reducing on-farm and transport costs.
Highlights in brief:
For further information, please contact:
Peter Gardiner, Manager Monitoring and
Innovation and Research Policy
Ph: 04 819 0623
Cell: 027 497 1719
Or Lesley Patston, Senior Communications Adviser
Ph. 04 8190163 or 027 2051418
The full SONZAF report is available on the MAF website: