Back in 2012, the Ministry for Primary Industries set the target of reaching $64 billion in annual exports by 2025. The MPI says its goal of doubling New Zealand’s primary sector exports by then will require the annual growth in the value of exports to almost triple starting this year.
In its latest Situation and Outlook for Primary Industries report, released today June 16, the ministry forecasts primary sector export revenue to rise to $36.7 billion in the year ending June 30 and to reach $44 billion in the June 2020 year, “which leaves us more to do” to reach $64 billion by 2025.
“In order to reach our real export target by 2025, primary sector exports would now need to grow by an average of 9.5 percent per year from 2016 onwards,” the ministry said. “Horticulture and other primary sector exports and foods have shown strong growth since 2012, but we will need contributions from the larger sectors such as dairy, and meat and wool in order to reach that target.”
For the June 2017 year, MPI forecasts primary sector exports will grow 3 percent, the second straight year with that rate of growth, before accelerating in the following year.
Horticulture is the star in 2016 with exports forecast to surge 20 percent to $5.1 billion, the first time the sector has exceeded $5 billion. Growth is projected to moderate to 6 percent in 2017, with total exports reaching $5.7 billion in 2020
“The sector is expected to continue its run of impressive growth over the medium term,” MPI said. “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. Horticulture prices have also increased as New Zealand has maintained its position as a supplier of premium products.”