new zealand New Zealand’s primary sector has successfully diversified, increased export revenue and made substantial productivity gains in a challenging market environment. However, fortunes across the agriculture, forestry and horticulture sectors have been mixed, as New Zealand experiences difficulties with market access, exchange rates, cost structures and international competition. Despite New Zealand’s relatively temperate climate, the primary sector must also manage adverse events such as droughts, floods and snow, which affect production patterns, crops, prices and quality.

In the 2005 calendar year, dairy and meat farmers and wine growers profited from stronger international prices and premium product positioning in key exports markets. Whereas others — foresters, apple growers and deer farmers in particular — struggled with declining international prices, which were exacerbated by difficult market conditions, higher costs and a stronger New Zealand dollar.

Since the beginning of 2006, however, the New Zealand dollar has depreciated, offsetting decreases in some commodity prices and improving primary sector confidence. Although international prices for meat and dairy products are in retreat, the prices of horticultural and forestry products are improving, and are expected to continue to do so, but these industries are having difficulty attracting workers, and labor costs are rising.

dairy sheep and beef wool deer, poultry and pigs horticulture kiwifruit pipfruit and vegetables wine small and emerging industries forestry