- Hon Todd McClay
Strong demand and favourable export prices combined with new export opportunities in Europe and the Middle East will see New Zealand's beef and lamb farmers add an extra $1.2 billion to their bank accounts this year as the primary sector helps to grow the economy, Agriculture Minister Todd McClay said during a farm visit in Canterbury today.
"This is extremely positive news for sheep and beef farmers who have been doing it tough over the last six years," Mr McClay says.
"Red meat exports are forecast to grow by 13 per cent this year which will have a positive economic impact on many of our provincial towns.
"New Zealand's trade is extremely diversified with our network of FTAs offering exporters choices about where they send their products. For example, the newly enacted trade agreement with the European Union has seen goods exports to Europe increase by more than 24 per cent over the last year with sheep meat playing a big part in this growth."
Mr McClay says lamb prices have increased by 20 per cent over the last year and mutton prices up by 70 per cent.
"It's good to see farmers starting to receive recognition for what their high quality product is worth."
Total red meat exports are expected to reach $10.2 billion this year with increased demand from key markets seeking high quality, safe, grass-fed food and fibre from New Zealand.
"New Zealand red meat is some of the safest environmentally friendly food produced on the planet. We can continue to meet our environmental and climate obligations without shutting down farms or sending jobs and production overseas."
Mr McClay says that the Government will continue to back sheep and beef farmers by reducing red tape and compliance costs and ensuring they can farm on a level playing field.
"We have already announced a ban on full farm to forest conversions from entering the ETS on some of our most productive food producing land from 4 December last year and will shortly introduce legislation to Parliament to enact this decision.
"The Government has set an ambitious goal of doubling exports by value in 10 years. It's important to recognise that our hard-working sheep and beef farmers are doing their bit to grow the New Zealand economy."
