New Zealand Agriculture in 2024: Key Highlights and Industry Insights
In 2024, New Zealand's agriculture sector experienced significant developments, marked by economic growth, biosecurity challenges, and strategic shifts within key industry players.
Economic Performance
Revised data from Statistics New Zealand revealed that the country's economy grew by 1.4% in the year ending March 2024, a substantial increase from the previously estimated 0.3%. This growth was bolstered by stronger performances in agriculture, forestry, fishing, and construction sectors. Economist Michael Gordon noted that the economic performance was more robust than initially thought, with a less severe decline in per capita GDP.
Biosecurity Measures
Biosecurity New Zealand intensified efforts to manage avian influenza outbreaks, placing a second poultry farm in Otago under a 'restricted place' notice following the detection of the virus. This action underscores the importance of stringent biosecurity protocols to protect the poultry industry and maintain export standards.
Industry Outlook
Entering 2024, the agribusiness sector faced uncertainties due to fluctuating global markets, evolving consumer preferences, and policy changes. The sector's resilience was tested by rising inflation, cost-of-living pressures, and a slowdown in key export markets like China. Despite these challenges, primary exports increased from $46.3 billion in 2019 to $57.4 billion in 2023, with dairy products showing particular strength.
Technological Advancements
Technological innovation continued to shape the agricultural landscape, with advancements in smart farming platforms enhancing decision-making and operational efficiency. These technologies are positioning New Zealand as a pioneer in sustainable and efficient farming practices.
Fonterra's Strategic Moves
Fonterra, the world's largest dairy exporter, reported a 25% decrease in annual profit to NZ$1.17 billion, attributed to weaker earnings in its ingredients segment and fluctuating demand in key markets, including China. Despite this, Fonterra announced a special dividend and increased its farmgate milk price forecast for the 2024/25 season, reflecting confidence in future global dairy prices.
In summary, 2024 was a year of adaptation and resilience for New Zealand's agriculture sector, navigating economic fluctuations, biosecurity threats, and evolving market dynamics while leveraging technological innovations to drive future growth.
Key Developments in New Zealand's Agriculture Sector
New Zealand economy grows faster in year to March 2024, revised data shows
Fonterra's annual profit falls 25%; shares rise on dividend declaration
