BusinessDesk: Encouraging prices and weather boosting farm sector

BusinessDesk: Encouraging prices and weather boosting farm sector

The best prices for sheepmeat since 1977, stabilising dairy prices and favourable spring weather all augur well for agricultural production, the Ministry of Agriculture and Forestry says in a six-monthly update to its annual Outlook publication.

Weaker than expected export prices for dairy, forestry, meat and wool have knocked forecast revenue for the year to March 2013 down by 3.5 percent, or $930 million, though MAF says commodity prices remain at “historically high levels”.

Meanwhile, climatic conditions over spring in New Zealand were favourable for milk production and lambing.

However, it warns the forestry industry can expect tougher competition in the Chinese market for unprocessed logs, as Russia is being forced to remove an export tax as part of its entry into the World Trade Organisation.

The star performer among agricultural products this year is lamb meat, which is fetching its highest inflation-adjusted price since 1977, although increased supply is expected to dampen prices over the next two seasons.

“The dairy sector faces a squeeze between increased supply from other major exporting countries and slowing demand from major importers such as China,” the MAF update says. “However, the sector’s expected total earnings, at $13.6 billion for the year to June 2012, will still be the highest to date.”

On the outlook for fisheries, MAF says the increased hoki quota and new legislation making aquaculture developments easier will underpin “modest” increases in output in the short to medium term.

(BusinessDesk)

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7 Comments

Increasing the Hoki quota?  Please I'm begging you leave something for my children to exploit.

Was surprised at Minister Heatley's decision on this one. Most evidence was pointing towards more research required on hoki biomass levels before any increase in the quota.

I'm guessing the Vela family will be happy.....

Haha LMAO, I have a friend who has been going to sea on a Hoki boat for 7 or 8 years now. Diminishing catch rates mean they can't even fulfil the current quota. His company even decommissioned a boat about five years back.

And Heatley is displaying stunning ignorance.

Aquaculture is an intrusion - an extractive intrusion - into an existing , balanced, food-chain. Something has to be displaced, unless you fertilise, just the same way a paddock is degraded if you just graze it.

Are they really that thick? Something for nothing? Take out that nutrient, feed it to human rather than aquatic mouths, and everything down the chain suffers.

Hoki, snapper, tuna, kahawai, yadiyadi ya.

Ignorance. Not just politicians like Heatley, but the folk who voted for his kind.

 

Are they really that thick? Yes I believe so.

Even where I live the harbour is silted up from the oyster farms, full of mangroves where there used to be sand and beaches.

You may have missed it PDK, but there was a study released a few months back on the health of the Hauraki Gulf. Pretty damning really. I spoke to a neighbour that is a Marine Biologist and has been working in the area for forty years, he says it is a disgrace.

Only one answer then...sell it! I can see it now...Govt establishes Hauraki SOE and moves to sell 49% to raise cash to feed into the WFF and landlord subsidy holes...SOE moves to charge boaties and tourists for using and or visitng Hauraki Gulf. Unregistered boats to be confiscated. Land based properties that fall within the SOE to be hit with higher rates burden. All aquatic farms to pay rates based on revenues to the SOE.

Everytime I see a trailer boat behind a big four wheel drive I wonder how long that will continue. But don't say that too loudly Wolly, some moron will take you up on it.

The other interesting one is the immediate neighbours tend to have tractors to launch, but they don't combine their resources and share a tractor. Not really a 'neighbourhood' as such, just a bunch of individuals living in the same place.