New analysis highlights dairy’s economic contribution
The dairy sector is encouraged by today’s GDP results that emphasise New Zealand’s economic rebound amid Covid-19. The dairy sector is playing a key role in a stable economy, contributing nearly one in every four dollars earned from total goods exports and services in the year to September 2020. Recent Sense Partners analysis, for DairyNZ and DCANZ, shows the sector is delivering $20 billion in export value. “Today’s GDP rebound may be a short-term benefit from the recovery in retail spending, wage subsidy and a hot housing market. So, it is important we don’t forget to focus on export-led growth moving forward,” said DairyNZ chief executive Dr Tim Mackle. “Dairy’s sustained economic contribution is a key factor in the country’s Covid-19 recovery, but tourism will also become increasingly important again as borders open. Importantly, dairy sector growth is supporting wage growth in regional New Zealand. “Dairy provides long-term stability for our communities. Export earnings translate to well-paying jobs, but also support farmers and dairy companies to purchase more than $22.5b worth of goods and services from other industries,” said Dr Mackle. At a community level, in 2019 the dairy sector accounted for more than 5 percent of GDP in seven regions – and more than 10 percent in four of those. West Coast has the greatest GDP from dairy, at 16 percent. “In dollar terms, this equates to dairy contributing more than $100 million to GDP in most regions – including nearly $2 billion in Canterbury and $2.5 billion in Waikato. This is especially significant because of the limited scale of other high-value export sectors in rural New Zealand.” The dairy sector is a significant employer in many districts, accounting for up to one-third of jobs in Waimate, and as many as one in four jobs in South Taranaki and […]