New Zealand Food And Fibre Exports On Track To Break New Records
Minister of Agriculture
Minister of Forestry
Farmers, growers, foresters, fishers and primary processors are driving New Zealand's economic recovery with export revenue on track to surpass $60 billion for the first time, Agriculture and Forestry Minister Todd McClay announced today at Fieldays.
'The latest Situation and Outlook for Primary Industries (SOPI) report forecasts export earnings of $59.9 billion for the year ending 30 June 2025, $3 billion higher than projected in December. This momentum is expected to continue, with exports reaching $65.7 billion by 2029,' Mr McClay says.
'These figures reflect the hard work and resilience of the hard working men and women of provincial New Zealand.
'Strong global demand and healthy prices across key markets are positioning our high-quality, safe and sustainable food and fibre exports for record growth.'
Growth highlights include:
dairy export revenue lifting 16 per cent to reach a record $27 billion
meat and wool export revenue increasing 8 per cent to $12.3 billion
horticulture export revenue growing by an impressive 19 per cent reaching $8.5 billion
forestry export revenue jumping 9 per cent to $6.3 billion
Seafood export revenue lifting 2 per cent to $2.2 billion.
'The numbers speak for themselves, but the Government remains laser-focused on doubling the value of exports in 10 years, driving higher farm and forest gate returns, and backing the long-term capability, resilience, and health of rural New Zealand,' Mr McClay says.
'We're investing heavily to deliver tools and technology to farmers and growers to tackle agricultural emissions with more than $400 million in continuing funding over the next four years and making targeted reforms to support farmer and grower success.
'Through the Budget, we launched the new $246 million Primary Sector Growth Fund (PSGF) to boost on-farm productivity and resilience.
'Our trade work continues at pace to open doors for Kiwi exporters, and our new Investment Boost tax incentive will encourage businesses to invest, be more competitive, grow the economy, and lift wages.
'When rural New Zealand does well, the whole country benefits,' Mr McClay says.
'That's why we're making sure our Primary Sector have the tools and support they need to deliver long-term economic growth and regional prosperity for all New Zealanders.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
11 hours ago
- Scoop
Defence's Waiouru Housing Project Fails To Break Ground After Deal With Ngāti Rangi Falls Over, Sources Say
Article – RNZ RNZ understands a deal with Ngti Rangi that underpinned the project fell over at the last minute. The Defence Force's flagship project to fix up poor housing that is bad for soldiers' health has failed to break ground two years after it was funded, according to sources in Waiouru. None of the 50 houses promised for Waiouru have been started, according to feedback from the town, which the NZDF has not disputed. Budget 2023 earmarked the thick end of $75 million for the new houses. A Defence tender to find a builder went out a year ago. But on Wednesday the government said, 'Discussions regarding Waiouru are ongoing and progressing well, as part of a wider Treaty Settlement.' Asked what the talks were about, Associate Defence Minister Chris Penk's office said, 'We don't have anything further to add outside of our existing statements currently.' NZDF did not address what the new discussions were about either. It did not respond when asked what had happened to the project and any contract. RNZ understands its deal with Ngāti Rangi that underpinned the housing project fell over at the last minute. Ngāti Rangi is hosting the National Hautapu Ceremony for Matariki next week at Tirorangi Marae. The iwi referred RNZ's questions to the NZDF. A spokesperson for Associate Defence Minister Chris Penk, in a statement sent after the publication of this article, said the Government did not accept the suggestion any deal had fallen over. It said in 2021 that, 'Housing is on the top of our priority list. As part of our settlement we have an arrangement with the New Zealand Defence Force out at Waiouru to build 50 homes. That project we're still working on with NZDF.' Penk told Cabinet colleagues last year that NZDF's widespread 'dilapidated' housing was harming military output. Defence has vacancy rates of about 30 percent and 'ten percent of personnel leave the NZDF predominantly due to the unsatisfactory working, training and living environments', he said. Budget 2025 signalled the start of $9 billion in promised new defence spending by 2029, containing about $3 billion for 15 projects, mostly to do with weapons or IT systems. However, the Budget provided just a fraction over the next four years to address the billion-dollar backlog in maintenance and renewals that is outstanding; past Cabinet papers gave this figure, and NZDF confirmed on Tuesday that its spending on defence regeneration was half a billion dollars behind what the 2019 plan demanded. In August 2024, Penk expressed shock after seeing photos of black mould in Waiouru families' homes. 'No family should have to live like that, let alone the families of those who sacrifice so much to serve their country,' he said. The temperature low in Waiouru over the last 30 days has been under one degree on 17 days. Some housing 'poses potential health risks and can cause housing-related stress to … personnel and their families', and was linked to health conditions like asthma, a Cabinet minute in 2023 said. The 50-house project was announced as settled a year ago, under the Te Tiriti settlement with Ngāti Rangi seven years ago. Ruapehu district mayor Weston Kirton and his council celebrated the deal 11 months ago. 'I don't have any detail, only to say that it seems to be stalled in some shape or form,' Kirton told RNZ on Wednesday. No building appeared to have taken place – a playground and community park were in the tender, too – and the council was not privy to why, or to Defence talks with iwi. 'The minister should give us an update on what progress there is on the Defence presence in the Waiouru community,' Kirton said. NZDF had earlier threatened to shut up shop entirely at the central North Island settlement and head south, so he had been delighted when the settlement secured the army's training area and the housing deal began to firm up. 'It was all go,' Kirton told RNZ. 'They were very excited, they wanted to retain the training area at Waiouru. 'We were excited, the fact that they were going to put resouces back into Waiouru.' On Wednesday, Penk initially made no comment at all about Waiouru, then, when prompted again by RNZ, provided a single line about the 'discussions'. Shortly before that, in a longer statement, he had said, 'The government is improving accommodation for our sailors, soldiers and aviators by addressing decades of underinvestment, which has left Defence housing stock in poor condition.' Penk referred in that statement to projects in Devonport, Trentham and Manawatū, but not Waiouru, even though Waiouru had the lion's share of Budget 2023's tranche one funding for housing upgrades. 'The Waiouru New Build Housing is one of the first projects implemented under the Homes for Families Programme,' said its tender. Two months ago on Facebook, Penk posted – next to a headline '$12 billion for a stronger NZ' cheering the defence capability plan released in April – that: 'This Government is rebuilding the Defence Force after decades of underfunding.' 'Defence housing, messing and dining spaces are going to benefit from fresh investment. 'Our military personnel deserve healthy and modern spaces to live and rest in while they serve our country.' The 50-house Waiouru deal was designed to signal the starter's gun on a half-billion-dollar upgrade of the army camp over the next 25 years, and of an overall $3 billion overhaul of 1600 defence houses countrywide. Most of those required 'upgrading urgently', past Cabinet papers said. Penk a year ago told a Cabinet committee the estate was a 'critical enabler of military effect; providing the working, training and living environments required for generating and maintaining defence outputs'. 'The dilapidated condition of the NZDF estate is evident everywhere, but mainly in the living and training environments, and with utilities such as power, water supply and sanitation.' A 2024 estimate put deferred maintenance at $480m across the estate, which includes not just houses but other facilities. Some 'critical' defence assets were so poor in some places that a 'wholesale shutdown of operations at that location may be needed', Penk stated. The NZDF's annual report a year earlier had said 99 percent of its houses met Healthy Homes standards. Asked how that was possible given what Cabinet had been told, NZDF told RNZ: 'Healthy Homes compliance does not address the state of NZDF's barracks or working accommodation and does not necessarily address whether a home is aged, fit for purpose and or in an accelerated state of deterioration.' Penk had said in August 2024 that funding was constrained but the government was looking at options for improving the housing. Earlier, Budget 2024 funded 35 leased homes at Devonport Naval Base. New initiatives in Budget 2025 funded just $4m of capital and $16m for housing over four years. More would be added 'once the business case is approved by Cabinet', NZDF said. The business case related to a revision of its 2019 estate regeneration plan to fit a 2024-2040 timeline. This had to be revised, in part, to 'address consequences of insufficient funding since the 2019 business case', official papers said. 'The business case is still being drafted and Cabinet's decision on it will be released when that occurs in the next couple of months,' it told RNZ. NZDF mentioned about $30m for upgrades at Devonport Naval base, but this does not appear to be for housing. Budget 2025 also had $120m for depreciated funding of estate assets. It put $26m into deferred maintenance this year, and $104m over four years, against the $480m backlog. Penk said in his statement that three construction contracts and a future lease agreement had been signed for 61 new homes with Ngāti Whātua Ōrākei on Auckland's North Shore, and to lease additional houses in Sunnybrae. A new tender signalled 'more housing solutions will be sought this year, including at Trentham and in the Manawatū', he said. Budgets 2023 and 2024 provided $75.4m capital and a total $17.1m over four years, Defence said. This included a renovation pilot for 13 properties at Burnham, Linton and Ohakea.
Scoop
12 hours ago
- Scoop
‘Devil Will Be In Detail': Luxon Reacts To Possible USA-China Trade Deal
Article – RNZ But the prime minister says it can only be a good thing as the global trading environment seeks more certainty. Morning Report Prime Minister Christopher Luxon says a possible USA-China trade deal is positive news, but time will tell what it means for New Zealand and the rest of the world. US President Donald Trump said a deal with China is 'done' after two days of high-level talks in London. Luxon welcomed the news but wanted to see the finer details. 'What we want to see is more certainty in the global trading environment, and I've read the reports as well,' he said. 'The devil will be in the detail, but that can only be a good thing.' Luxon said he expected to discuss the matter with China President Xi Jinping on his next trip the global giant. 'I'm sure that will be a topic of conversation about how we see the global trading environment and how we're observing in the region, but also around the world,' he said. Despite the trade uncertainty, Luxon said New Zealand exporters to the US had been making good progress. 'They'll still finding really great opportunities to grow their businesses, they're doing a great job of targeting the right channels and customers,' he said. 'But yes, of course that will be a big top of conversation when I do catch up with both President Xi and Premier Li (Qiang) in due course.' Agriculture Minister Todd McClay also welcomed the news of a possible US-China trade deal. The overnight announcement comes as the government welcomes the state of the country's agriculture sector. The Ministry of Primary Industries' Situation and Outlook report is projecting a double digit increase in New Zealand export revenues this year – though it warns about global uncertainty. It estimates New Zealand's agricultural export revenue could reach just under $60 billion by the end of June, up from a dip in 2023-4. McClay told Morning Report if a US-China deal has been done it would be 'good news'. At an OECD trade ministers meeting in Paris last week he had met with the trade ministers of both China and the US. Both had then gone off for joint talks so some momentum had been building to try and find a solution to their tariffs impasse. If things calmed down for international trade it would bring 'welcome relief' for exporters and result in some 'sensible decision-making'. Exporters 'go for value' McClay said the remarkable growth in primary exports was very positive. Dairy had enjoyed a solid season with a good supply of grass which had increased milk production. The meat sector was performing well and for the first time $5 billion worth of kiwifruit had been exported. Even the US market faced with tariff uncertainty was providing some opportunities for Kiwi exporters, citing the example of NZ King Salmon which has talked of increased sales at a higher price. Kiwi exporters were working hard to add value to their products, McClay said. One example was selling ready to eat burger patties to China which resulted in greater returns for farmers. 'So we're seeing Kiwi exporters go for value, not competing on price anywhere as much as they used to.' Luxon said the government, particularly McClay and Finance Minister Nicola Willis could take a 'tremendous credit' for the growth. 'We've created the conditions for growth; it's ultimately up to the businesses themselves to go out and seize on those opportunities,' he said. 'But if I think about the work that Todd's undertaken to make sure we're opening new markets, whether it's the GCC, the UAE, a 21 percent growth in the UK just in the last 12 months, a 28 percent in the EU by virtue of Todd bringing that agreement into earlier acceptance. 'There's been tremendous progress made on the trade front, and I think Nicola's work to make sure that she's cleaning up the books, good financial management, good fiscal management to lower inflation, to lower interest rates to get the economy growing, to get people employed – that's the work we've been doing as a government.' Luxon reiterated the government's belief in the importance of growth and said it was the primary industry sector pulling New Zealand out of a recession. 'We've got a really exciting future to shape it despite all the volatility that's out there in the world. 'Really proud of the primary industry sector, but also proud of the work of both Nicola and Todd and all of our team to create the conditions for growth as well.' On building in sustainability A government-backed grass certification standard for dairy and meat exports had been launched at Mystery Creek Fieldays yesterday, McClay said. This would be highly desirable for markets in China, other parts of Asia and the Middle East, McClay said. 'Grass fed now is increasingly wanted by consumers and they're willing to pay more.' On sustainable products, Groundswell has been calling for New Zealand to exit the Paris Agreement on Climate Change. McClay said that was not going to happen mainly because it would make exports to many markets untenable. He believed Groundswell and others were worried about higher costs and lower production if they adopted sustainable measures. 'We've been really clear – we think through technology and other things we can meet these obligations without putting farmers out of business.' Alternatives to farmers going into the Emissions Trading Scheme were being worked on and would be announced soon. McClay said the requirement of reducing methane by 10 percent by 2030 was on track to be met. 'So it shows farmers are willing to do it but we have to lean heavily into technology rather than just planting trees.' A number of products, known as methane inhibitors, have been developed already although they might have to overcome consumer resistance. McClay said anything developed would have to go through rigorous scientific testing. There would be a range of solutions developed and farmers would decide which ones they wanted to pick up. 'The overseas customers through the dairy company should be paying for this, not the New Zealand farmer.'
Scoop
12 hours ago
- Scoop
Government Backs Voluntary Nature Credits
Press Release – New Zealand Government The development of a nature credit market is important to investors and New Zealands reputation. Associate Minister for the Environment The Government is supporting the expansion of a voluntary credits nature market through the running of pilot projects across New Zealand. Establishing a market that is durable, measurable and transparent will help farmers, landowners, iwi, and conservation groups unlock new income streams for looking after nature on their land, Associate Minister for the Environment Andrew Hoggard announced today at Fieldays. 'We want to connect those caring for the land with investors who support conservation. Nature credit markets help fund trusted environmental projects that actively protect and restore ecosystems.' Mr Hoggard said international and domestic investors—including corporates, banks, and philanthropists—are seeking high-quality nature and carbon credits that meet global standards. The development of a nature credit market is important to investors and New Zealand's reputation. 'New Zealand companies spent millions on carbon and nature credits mainly offshore last year. With the right framework, we can keep more of that investment at home.' The Government moved quickly to repeal the previous Government's direction to Councils to identify and map Significant Natural Areas (SNA) by suspending parts of the National Policy Statement – Indigenous Biodiversity. 'Farmers and other private landowners are doing their part to protect native biodiversity and want to do more. Supporting voluntary natural credits markets is a chance for the Government to show them the carrot, not just the stick. Privately funded pilot projects are underway to test how nature credit markets can work in the New Zealand context. As part of these pilots, we will test the role for Government which may include setting principles, and a framework for standards, to build market confidence and ensure quality.' Further details on the Government's role and the design of the expanded market will be announced in the coming months. Information about voluntary nature credits market pilots The pilots represent different land conditions, locations, types of market participants, and activities. They will help the Government understand how to meet the high standards of international markets, the role of Government, and what works best in New Zealand. This real-life experience will provide valuable insights as we move to the next stage of market design. Te Toa Whenua Northland, led by Reconnecting Northland. Transitioning around 100 ha from exotic forestry to native including pest control on iwi-owned land. Waituna Nature Credits Prototype Southland, led by Whakamana te Waituna Charitable Trust (Awarua Rūnunga, Ngai Tahu, Fonterra, Southland District Council, Environment Southland, and Department of Conservation). Restoring 400 ha of farmland at lagoon margins to lowland forest & wetlands (RAMSAR protected site). Waimanu Forest Gisborne Led by Aratu Forests. Converting a commercial forestry block to 50 ha of natives for biodiversity uplift and increased recreational and educational values. Scope to expand to up to 5,000 ha. Sanctuary Mountain Maungatautari insights Waikato, led by Sanctuary Mountain Maungatautari. Observing the current process of issuing credits for conservation and protection activities within the 3,360 ha inland ecological sanctuary. Existing Biodiversity Credits Market (BCM) project standard insights Led by Ekos. Offering market insights from an existing BCM provider. Includes understanding the journey of Reconnecting Northland's proof-of-concept project through this process. Adapted nature credits international standards Led by Boffa Miskell. Testing at-place an additional NZ BCM project standard that is adapting UK methodology to NZ environments as a competitor to domestic or international project standard/certification providers. Voluntary carbon market standard with biodiversity safeguards insights Led by AsureQuality. Testing its carbon project standard, which requires native revegetation, designed to be more applicable and affordable for the New Zealand context. Nature positive credit programme pilot Led by Silver Fern Farms. Testing a processor-led programme for market attraction, and potentially third-party investment, in on-farm nature restoration and enhancement activities that support commercial 'nature positive' claims. Nature-based markets pilots for rural landowners Led by Pāmu Farms. Exploring pathways to make nature-based markets accessible to a range of New Zealand farmers and landholders.
