Excellent growing conditions have bolstered milk production this season although meat processing has been delayed as farmers hold onto livestock for longer, meaning heavier stock for processing when they eventually come forward.
" China continues to become a more and more important market for NZ’s primary produce.”
With in-market prices average or above for virtually all sectors - with wool the only major exception - the relatively low NZ dollar is resulting in greater returns for farmers and growers.
China continues to become a more and more important market for NZ’s primary produce. The flipside of opportunity is vulnerability: NZ is increasingly exposed to the risks associated with a slowing of this economy. But for now demand from this market is unabated.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into force at the beginning of this year for the seven nations that have ratified the agreement. NZ’s dairy sector stands to gain the most from this agreement, with tariff reductions for this sector estimated to be worth $NZ 86 million per annum once fully implemented. However, in percentage terms, it is the meat and horticultural sectors with the most to gain, primarily due to improved access into Japan and Canada.
Prices at farm/orchard level relative to 10yr average