A jump in the value of dairy exports is enough to restore growth to New Zealand's primary sector exports for the June 2017 year, according to the March edition of the Situation and Outlook for Primary Industries.
Dairy exports are forecast to rise 8.7 per cent to $14.5 billion in the 12 months ending June 30, the Ministry for Primary Industries' latest SOPI said.
That's an improvement from the projection in December when growth of 3 per cent was forecast, reflecting rising prices but declining production. The improvement means total primary sector exports are now expected to rise 1.4 per cent to $37.5b in the year, compared with December's prediction for a 0.8 per cent fall.
A pickup in the value of dairy, forestry and horticulture more than offsets a slightly weaker projection for meat and wool in the ministry's latest forecasts.
"We expect dairy prices to continue to remain relatively stable (at higher levels than in the previous year) over the remainder of the season, buoyed by lower production coming out of the Southern Hemisphere," the ministry said.