Widespread drought throughout New Zealand will correlate to a decline of primary sector export revenues for the year to June 30 of $1.3 billion, the Ministry for Primary Industries says.
In the ministry's annual Situation and Outlook for Primary Industries report, released yesterday, Primary Industries Minister Nathan Guy said the drought had reinforced ''just how crucial'' primary industries were to New Zealand.
''They remain the powerhouse of our economy, generating around $30 billion a year in exports and helping to fund our health, education and social services,'' he said.
It was a ''season of two halves'' for many pastoral farmers, with the first half characterised by a continuation of favourable climatic conditions experienced in 2011-12, while a long spell of warm, dry weather from January plunged the North Island and the West Coast into drought.
While rain over much of the country in April started to address moisture deficits, the impact of the drought would be felt into next season and beyond, the report said.
Farmers were carefully managing their livestock to ensure they maintained condition leading into calving and lambing, and stock feed to ensure they had adequate supply to get through winter.
A greater reliance on supplementary feed and nitrogen to aid pasture recovery would create a financial burden for pastoral farmers into next season.
Longer term, relatively poor stock condition would have an adverse effect on lambing and calving rates in spring. Coupled with recent destocking, that would significantly reduce the number and weight of livestock available for slaughter next season, which would have an adverse effect on sheep and beef farmers' incomes in 2013-14.
The challenge to the primary industries was to develop resilience - to protect farmers' ability to continue to produce and export, as well as to add value, ministry sector policy director Jarred Mair said.
That would help meet the ministry's goal,
which was to help the sector double the value of primary sector exports by 2025.
Mr Guy announced in late April it was unlikely he would formally lift official drought status before it expired at the end of September.
