Dairy exports will have earned New Zealand $19.2 billion by mid this year as forecast by the Ministry for Primary Industries in its latest Situation and Outlook report.
That is $1b more than last year’s figure of $18.1b.
Over the last decade tourism and dairy have regularly swapped positions as the biggest export earner.
MPI figures show dairy exports up 12% since the start of March, compared to the corresponding time last year, a $512 million increase.
“Dairy farmers have an important role to play and will be a key component in NZ’s post-covid economic recovery,” DairyNZ chief executive Dr Tim Mackle said.
“This is good news and dairy farmers and workers throughout the dairy value chain can be proud of the valuable contribution they have made as essential workers throughout lockdown.”
Meanwhile, against predictions, Global Dairy Trade prices have held up, encouraging analysts to adjust their farmgate milk prices upwards to $6.30/kg milksolids average though many uncertainties might undo the rosier forecasts.
Fonterra has a wide range of $5.40 to $6.90, reflecting the potential for further unsettling economic news.
Both Chinese and southeast Asian buyers have been active in recent dairy auctions, resulting in positive prices.
Mackle said the dollars dairy brings into the country will be critical as NZ rebuilds its economy and communities after the impact of the global pandemic.
“A key contribution of the dairy sector to the economy is also the availability of jobs.
“There are fantastic opportunities for Kiwis to get work on dairy farms right now, including people who have lost jobs due to covid-19.”
DairyNZ has launched a Go Dairy campaign to attract people to work in dairy and to provide training and support so they have the right skills to have a great experience once they get work on a farm.
“Dairy is a tried and true sector that has delivered for us in the past and it will continue to deliver in the future – providing safe and highly nutritious food and also economic prosperity and resilience to our regions,” Mackle said.
