Exports

Exporters appear to be in for another tough year as the New Zealand dollar surged past US84c this week, with an economist picking rates above US80c for most of the year. The exchange rate was above US80c for 75% of 2012, and never closed below US75c, BNZ currency strategist Mike Jones said.

Primary sector export revenue for the year to June next year is forecast to be down about 5% on the previous year's income, as deteriorating global economic conditions significantly impact on returns.

The majority of exporters are still in a positive frame of mind despite exchange rate challenges and the lacklustre growth affecting some parts of the world economy, ExportNZ executive director Catherine Beard says.

A $23.7 million programme to produce high-value marbled beef for premium markets was announced by Ministry for Primary Industries director-general Wayne McNee yesterday, during the Red Meat Sector conference in Queenstown.

Emerging market growth continues with New Zealand sheep meat exports to China up for May 56% by volume and 61% by value.

A shift in sales focus towards Asia and Australia has contributed to a 3.1% increase in fruit and vegetable exports to $3.3 billion in 2011.

Southern exporters are being cautioned to plan ahead for shipping space with the likelihood major shipping lines will again not be offering unscheduled vessel visits to take pressure off peak season loads.

Volatility in the New Zealand dollar has cost exporters an estimated $6.6 billion during the past two and a-half years, according to the New Zealand Manufacturers and Exporters Association.

Smart new forms of plywood could be used in rebuilding earthquake-damaged Christchurch, and could boost the value of New Zealand's wood exports.

Exports of sheep and beef products in the year ended June increased 9% to $5.8 billion, despite lower volumes.