MP Kiri Allan optimistic about primary sector growth

Labour's locally-based list MP Kiri Allan. Photo / Supplied

The value of New Zealand's primary sector exports is set to grow by $505 million to a new record high over the coming year, says Labour's East Coast-based list MP Kiri Allan.

The Ministry for Primary Industries' latest Situation and Outlook report forecasts a 3.8 per cent increase for primary sector export earnings for the year ending June 2019, to $44.3 billion.

"There's a lot to be positive about when strong consumer demand for high-value produce and good growing conditions have, in just the past three months, nudged up forecasts by an extra half a billion dollars," Allan says.

"This shows primary sector exports will continue to be a strong contributor to the New Zealand economy, which is forecast to grow at about 3 percent a year over the next few years.

"Primary sector export growth is due to a range of positive pointers that also reflect the importance of moving away from volatile raw commodity markets and into markets offering sustainable, premium returns.

"In particular for dairy farmers, good weather means plenty of grass and greater milk production at a time of growth in value-added products.

"This is set to be the fourth year in a row dairy export returns have risen following the dairy downturn of 2015 and this is why it's vital we add value to every litre of milk produced in New Zealand.

"Horticulturists are benefiting from strong consumer demand for sought-after produce, and foresters have had a strong first quarter for log and sawn timber exports.

"The results are promising but there are uncertainties in the global marketplace such as the trade dispute between the US and China and Brexit, which means instability across commodity prices, exchange rates and equities.

"As the outlook notes, there is increased risk beyond 2019 and this is why the Government is pursuing high-quality free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

"For future growth, we need to get more value for what we produce now, and we are focused on helping our primary sector to achieve this sustainable, value-added growth that ultimately benefits all New Zealanders," Allan says.

The Labour-led Government was supporting the rural sector in many ways, she says.

"This is why the constant criticism by the National Party about the Provincial Growth Fund is so disheartening.

"Government money spent in the regions and in particular in the rural sector will be of benefit to all New Zealanders for decades to come — as these increased figures show so clearly.