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Horticulture leads way in export success

28 Jun Horticulture leads way in export success

The horticulture sector is the star of New Zealand Primary Industry and ongoing growth is predicted by the Ministry for Primary Industry (MPI) and is leading to significant investment in increasing processing capacity.

MPI Director of Sector Policy, Jarred Mair, says the latest Situation and Outlook for Primary Industries (SOPI) shows that, overall, exports have returned to growth this year – providing a clear signal of the strength of our primary industries.

He says the overall outlook the primary sector is looking positive with strong growth forecast across most sectors and dairy prices expected to gradually increase over the next 2 years the Ministry for Primary Industries (MPI) says.

New Zealand primary industry export revenue is estimated to reach over $36.7 billion in the year ending June 2016, supported by strong growth in horticulture and other primary sector exports and foods,” he says.

Mr Mair says horticulture exports are expected to continue their run of impressive growth over the medium term.

Horticulture exports exceeded $5 billion for the first time in 2015/16.

Kiwifruit exports hit record levels for the year to March 2016, and exports of wine, apples, and pears are increasing due to new plantings reaching maturity.

As an example, apple and pear export revenue has doubled since 2012, estimated to reach almost $700 million for the year ending June 2016. Horticulture prices have also increased as New Zealand has maintained its position as a supplier of premium products.

“Strong growth is also being seen in exports of innovative processed foods, honey, live animal, and other products.

The outlook for the primary sector is supported by industry’s significant investments in processing capacity across the country in a range of sectors.

Free trade agreements will also help grow our exports, while population growth and economic development throughout Asia will support increased demand for New Zealand’s protein, horticulture, wood, and fibre products,” says Mr Mair.