City dwellers, preoccupied by Covid, may not have observed that the country’s export economy is being sustained by its primary industries. Last week came the news that Fonterra had signalled a record payout to its suppliers, pumping $13.2bn into the regions.
Some analysts think that may be on the conservative side and the final payout will surpass $9kg/MS.
In any case, the ANZ commodity price index lifted 2.8% in November, pushing it into new territory. The bank’s economists, noting that dairy prices led the charge, reported they were supported by strong gains in meat.
Again, because of the preoccupation with the pandemic, it may have gone unnoticed that meat exporters achieved record returns in the season ended in September. Total export receipts for beef and sheepmeat equalled the record returns of 2019–20 and were 17% up on the five-year average.
Beef export volumes reached a record high in 2020–21, up 8% on 2019-20 and 16% up on the five-year average. The high volumes reflected the numbers of steers and heifers processed.
The higher volumes were easily absorbed by strong consumer demand and tighter global beef supply.
Lamb export volumes in the 2020–21 season were about the same as in the previous season and the five-year average. The average export value was 4% down on the record high of 2019–20, but 8% above the five-year average. Continue reading “Wool growers, too, have something to cheer about as dairy leads the charge in brightening farmers’ prospects”