At the peak in mid-2022, on-farm costs rose 15%pa, more than double the peak consumer inflation rate. But inflation has now clearly turned a corner and is moderating, a trend also seen in on-farm costs, with the annual gain to March 2024 just 1.2%pa – the slowest rise since the start of 2021. Read

The outlook for the primary sector remains worse for the year ahead, driven by several factors including higher costs, lower global demand, and weather influences. Read

New Zealand’s economy looks to have expanded further in the September 2023 quarter, although momentum has slowed as various economic pressures hit. Continued jobs and population growth have supported growth, but high inflation and higher interest rates have moderated the strength seen in the economy. Rising pressures on the primary sector are also beginning to hit provincial economies. Read

There are increasing questions being raised in the provinces about how hard the hit to the primary sector, and by extension the broader New Zealand economy, might be from lower export prices. That mounting risk represents a shift in focus from higher interest rates, which have dominated the discussion about factors weighing on the economy over the last two years, as the official cash rate has been ramped up from 0.25% to 5.5% and mortgage rates have hit a 14-year high. Higher fuel prices are adding to economic challenges, costing families more and raising the cost of moving goods around. Read

Economic momentum continues to hold up better than expected across New Zealand, with rapid jobs growth and population growth counterbalancing inflation and interest rate challenges faced by households. Some parts of the country continue to experience solid growth, but others remain hampered by the ongoing effects of wild weather over the first half of 2023. Read

In this article we look at how a price on agricultural emissions that is lower than that paid elsewhere in the economy imposes a cost on New Zealand citizens that could reach an average of $1,000 per person by 2030. Read

Recently released data from Stats NZ shows that the number of sheep per person in New Zealand had declined to below five in 2022, the lowest since the 1800s. However, the analysis was more sheepish about providing the ratio trend over time. Read

Egg shortages have emerged across New Zealand in late 2022 and early 2023 as the supply of eggs has fallen. This analysis provides a brief overview of total egg production trends in New Zealand, highlights regional and local egg production, and examines egg prices. Read

The massive increase in tourist numbers coming to New Zealand between the Global Financial Crisis and the COVID-19 pandemic is well documented, lifting from under 2.5m in 2008 to 3.9m in 2019. But it’s perhaps less well-known that agriculture and forestry exports held their own during this period, with their share of total exports increasing from 44% to 49%. Read

New analysis from economic consultancy Infometrics reveals billions of dollars of untapped potential for Kiwi exporters for new markets and products across the globe. Read