New Zealand's agritechnology exports, worth $1.2 billion annually, look to be on a roll despite historically underperforming compared with key competitors.
New Zealand Trade and Enterprise commissioned a Coriolis report analysing the size, value and future potential of the agritech sector to better understand export opportunities. Although New Zealand has a long history in agriculture, which contributes more than half of the country's total exports, its performance in agritech has previously been poorly defined.
The sector includes a diverse range of products and services from animal and seed genetics to fertiliser and agri-chemicals, fencing supplies, farm tools, machinery and systems, and pumping and irrigation industries.
The report found agritech exports have grown at a 4 per cent compound annual growth rate (CAGR) over the five years from 2008 to 2013. While the growth rate is good compared with peers, the sector is still underperforming relative to other advanced agricultural nations in terms of size.
For example, Israel, a tiny desert state the size of the West Coast, exports approximately 10 times as much agritech as New Zealand. The report said the peer comparison indicated potential upside for New Zealand of five to 10 times the current export levels.
