Dairy plays a key role in latest economic success
The dairy sector is thrilled to see that its significant contribution to the New Zealand economy is affirmed in the latest Situation and Outlook for Primary Industries 2019 report. “It is great to see this acknowledgement of the huge part that the dairy sector plays in the economy,” DairyNZ chief executive Dr Tim Mackle says. The Ministry for Primary Industries March 2019 report says dairy export revenue is forecast to rise 5.5 percent to $17.6 billion for the year ending June 2019, up from 13.3 billion in 2016, 14.6 billion in 2017 and 16.7 billion in 2018. Increased milksolids production translated into higher export volumes; and a reversal of declines in key dairy commodity prices at the end of 2018 continued into 2019. Total dairy exports for the six months ended December 2018 grew 3.8 percent to $8.7 billion compared to the previous year. There continues to be strong international demand for dairy, including from China. Dairy exports to China, as our largest trading partner, are up 16.6 percent to $3.2 billion for the six months ended December 2018 compared to the previous year. “For New Zealand’s dairy farmers, the strong production, a recovery of export commodity prices, and a weaker NZD should help ease downward pressure on farm level profitability for the current season. We have accordingly adjusted our all company average farm gate milksolids payout forecast for the 2018/19 season upwards to $6.41 (including dividend),” the MPI report says. Dr Mackle says the dairy sector contributes to national and regional economic development, supports New Zealanders’ wellbeing and employs more than 46,000 workers nationwide. The latest dairy achievements align with the dairy sector’s strategy, Dairy Tomorrow, which has an aspiration to improve the lives of New Zealanders with every drop of milk, Dr Mackle says. “The continuing success of […]