Higher volumes of exports resulting from last year's
favourable production season boosted primary sector revenue
for the September quarter, despite difficult trading
conditions and a stronger dollar.
Export revenue for the quarter was $7.12 billion, up 4.7% on
the previous September quarter, and, at $32.43 billion for
the year to September, was up 0.5% on the previous year, a
report from the Ministry for Primary Industries report
The result was mostly driven by higher meat and dairy volumes
as exporters sought to reduce stocks generated by the
''bumper'' production season, MPI economic information and
analysis manager Chris Jones said.
Dairy export revenue was up 10.4% for the quarter due to a
36% volume increase, largely from the 2011-12 season.
Over the decade since September 2003, the dairy industry's
contribution to total primary sector export revenue had
increased from 30% to 43% in 2012.
Milk solids production increased 8.8% in the September
quarter to 316,000 tonnes due to instances of early calving
that boosted production in July and August, favourable
climatic conditions during winter and early spring, and an
increase in cow numbers, the report said.
Export prices for all dairy commodities decreased in the
September quarter, compared to the corresponding quarter last
year, due to abundant international supplies.
In contrast, export volumes soared for all production except
cheese, as a result of a large volume of product stocks from
the 2011-12 season being exported in what was typically the
quietest dairy export quarter in a year.
Meat export revenue increased 1.6% to $1.04 billion for the
quarter, but the higher volumes were moderated by lower
prices for lamb, sheepmeat and venison. Seafood revenue was
up 4.6% to $385 million, due to a 6.1% volume increase.
Higher export revenues from sawn timber and panel products
were not enough to counter weaker revenues from other
A report by the MPI earlier this month showed primary sector
export revenue for the year to June next year was forecast to
be down about 5% on the previous year's income, as
deteriorating global economic conditions significantly