New Zealand agricultural exports set to climb to record NZ$64.3 billion, led by dairy and red meat

New Zealand's Ministry for Primary Industries (MPI) projected NZ$64.3 billion in its Situation and Outlook for Primary Industries report for the fiscal year ending in June. The figure represents a 7.2% increase on the prior year. Dairy exports will contribute NZ$26.4 billion, red meat NZ$11.8 billion, with kiwifruit and forestry adding a combined NZ$15 billion.

Fonterra chief executive Miles Hurrell said the company has raised its forecast farmgate milk price to NZ$10.30 per kilogram of milksolids, after Whole Milk Powder reached US$4,180 a tonne in June. MPI economic group head Andre van Halderen said China's milk powder imports have risen 19% over the past two months. Agriculture Minister Todd McClay said the revenue secures thousands of rural jobs.

The shift of Chinese food imports toward New Zealand has continued amid the US-China friction. ANZ Bank economist Susan Kilsby said the MPI number could lift the economic growth forecast by 0.3 percentage point. The NZX 50 closed 0.4% higher on the day, led by dairy and red-meat stocks. (Not investment advice.)