October 21, 2009
New Zealand's agriculture sector continues facing difficulties
The second quarter of 2009 proved to be another difficult period for New Zealand's agricultural sector, according to a new report from Research and Markets.
New Zealand's agriculture industry is heavily dependent on exports, which was dented by the strengthening New Zealand dollar, negating the positive effects of a slight recovery in commodity prices over the period.
While prices and exports of beef held up well for the first half of 2009, New Zealand's beef producers are expected to suffer from the strong New Zealand dollar and the low point in the country's meat industry. Cattle inventory are the lowest in decades and confidence among farmers is down.
Meat and Wool New Zealand (MWNZ) is hoping to stimulate the sector by plotting a development strategy that aims to develop leadership and managerial skills in livestock farming. The initiative targets to rectify the sector's difficulty in attracting new talents. The body will also aim to develop new markets for New Zealand's meat exports such as in Asia.
But these plans come with a price, and a rise in the levy for cattle farmers announced by MWNZ was not popular with farmers.
The new levy requires beef cattle farmers to pay an additional NZ$0.20 per head from the current level of NZ$3.60.
