June 15, 2017

 

 

Rising exports of New Zealand's dairy products - together with forestry and horitculture - are expected to help generate a 2.4% growth in the country's primary sector exports by June 2017, the New Zealand Herald reported.

 

The percentage is an increase from the 1.4% growth observed months ago, based on a recent edition of the Situation and Outlook for Primary Industries.

 

One key factor for the rise is the strong demand for dairy imports in China, coupled with lower domestic production and increased consumption, New Zealand's Ministry of Primary Industries (MPI) said.

 

"Increasing demand for whole milk powder (WMP) from other markets, like Brazil, Indonesia, Algeria, and Russia, will help support global prices during the year ending June 2018," the ministry added.

 

In the 12 months ending June 30, dairy exports are forecast to increase 10.2% to NZD14.6 billion (US$11 billion), according to MPI's SOPI. In combination with forestry and horticulture, dairy will help boost total primary sector exports in the current year to NZD38.1 billion (US$28 billion) from NZD37.2 billion (US$27 billion) a year earlier.

 

Anticipated growth in dairy exports was updated for 2017 and 2018, with next year's estimate raised to NZD17.3 billion (US$13 billion) from an earlier estimate of NZD16.8 billion (US$12.4 billion).

 

So far, gross domestic product for the first quarter of 2017 was shown to be driven by higher milk production as agriculture, forestry and fishing expanded 2.8%.

 

New Zealand's dairy rebound reflects the recovery of worldwide dairy prices as supply and demand stabilise over the year, MPI said. In addition, export revenue is expected to rise until 2021, depending on strong butter prices, and balanced global supply and demand "for most dairy products".

 

- New Zealand Herald