Economics and trade

Economy set to gain from 7 per cent drop in NZ dollar in just a month in a month

[21 May/NZ Herald] The New Zealand export sector and general economy looks likely to benefit from the 7 percent fall in the New Zealand Dollar relative to the U.S. dollar. A weaker local currency stimulates export earnings. In the case of Fonterra, the substantially lower NZD would be supportive for farmgate milk prices. ANZ Senior...

China trade agreement upgrade to reflect modern trading relationship: PM

[14 May/Stuff] Foreign Affairs Minister, Winston Peters, will go to China to talk trade at a critical time. Mr Peters said the objective was to extend their relationship and a range of issues would be up for discussion. He added that China had a growing influence on the Pacific region and that New Zealand needed...

Winston Peters confident about announcement of EU-New Zealand trade negotiations

[9 May/NBR] Foreign Affairs Minister, Winston Peters, was confident the EU would agree to start trade negotiations with New Zealand when it meets on May 22. He said serious progress had been made to the extent they believed there wold be an announcement from the EU in respect to a free-trade negotiation start. Jacinda Ardern...

Alibaba Group chief executive on New Zealand visit

[27 April/The Country] Alibaba Group Chief Executive, Daniel Zhang, will meet business leaders and heads of government agencies, but did not have any formal meetings planned with ministers during his trip to New Zealand. Alibaba has invited government agencies to several events where Mr Zhang will talk about its own enterprise and global initiatives. A...

Commonwealth FTA ‘too ambitious,’ exporters say

[23 April/Stuff] ExportNZ Executive Director, Catherine Beard, said a multilateral trade deal between commonwealth trade countries was too ambitious given the workload already on New Zealand’s dance card. She added that it was a possibility however would take a lot of time. Ms Beard noted that dairy exporters were excited about a deal including Africa,...

Developing Auckland as a Silicon Valley for food

[18 April/NBR] Auckland had the hallmarks of a business cluster for F&B manufacturing according to a government report. The report identified Auckland as having one-third of New Zealand’s food and beverage manufacturing firms, 23 percent of the country’s F&B manufacturing employees and half of the head offices of the largest F&B firms. The report said...

US position on TPP unclear, says Govt

[13 April/Otago Daily Times] According to Trade Minister, David Parker, it was still unclear whether the U.S. was committed to returning to the Trans Pacific Partnership. U.S. President, Donald Trump, told officials to look at signing the partnership. During his campaign he was against the deal calling it a disaster. He saw it as a...

Primary sector export returns tipped to rise by 10 per cent to $42.4 billion

[19 March/Stuff] Export returns from farms, orchards, forests and fishing are expected to hit a new record of $42.4 billion by the end of June . According to the Ministry for Primary Industries, this would be a 10.8 percent increase and that its forecast reflected a recovery in dairy prices over the past 12-18 months,...

Economic growth takes a hit due to weather

[16 March/Otago Daily Times] Weather related events over the last three months have affected economic growth. Gross Domestic Product increased by 0.6 percent in the three months ended December which was weaker than most forecasts suggested. Growth was also impacted by the fall in NZD/USD exchange rate. According to Statistics New Zealand, higher activity in...

NZ signs CPTPP deal in Chile

[9 March/NZ Herald] Trade Minister David Parker signed the Comprehensive Progressive Trans Pacific Partnership, and also revealed New Zealand had signed side letters with five countries to exclude the use of controversial compulsory state-disputed settlement provisions. He added that it was good to see international acknowledgement of the need for trade that worked for everyone....

NZ terms of trade at new record high

[1 March/Radio NZ] Due to record lamb and butter prices, New Zealand’s purchasing power with the rest of the world has improved. Official figures have shown the quantity of imports that can be bought with a given quantity of exports rose by 0.8 percent in the December quarter. Export prices rose 4.9 percent mainly due...

Dairy prices boost commodities index

[5 March/Radio NZ] A recovery in dairy prices drove New Zealand’s main commodities to have their strongest price rise in eight months. According to ANZ Bank, the commodity price index rose 2.8 percent last month which was the second monthly gain in a row. ANZ advised that the lift was broad-based but dairy was the...

Senior Fonterra GM jumps ship to become ambassador to Korea

[5 March/NZ Herald] Fonterra Senior Executive, Philip Turner, is leaving the co-operative to become New Zealand’s new ambassador in South Korea. Mr Turner’s departure had been known in the market for some months, and Foreign Minister, Winston Peters, has announced his new appointment. He has held multiple senior positions with Fonterra since March 2007. Prior...

Trans-Pacific Partnership could benefit NZ by up to $4b

[21 February/The Country] New Zealand’s Ministry for Foreign Affairs and Trade (‘MFAT’) said the economy will grow by up to $4 billion following the release of the revised Trans-Pacific Partnership trade agreement. The dairy industry is expected to save up to $86 million in tariffs and New Zealand’s exporters would save about $200 million to...

New Zealand’s exports to China jump by a quarter, total exports hit records

[30 January/Stuff Business] New data shows that New Zealand exports rose to a record high in 2017 with total exports climbed 11% to $53.7 billion.  With imports increasing 9.4% to $56.5 billion the trade deficit of $2.8 billion was the lowest in three years.  December was the strongest export month of all time for New...

‘Hallelujah’ moment: Revised TPP to be signed in March

[24 January/Radio New Zealand Business] Trade Minister, David Parker, has confirmed that the Trans Pacific Partnership is to be signed in March following talks in Tokyo.  The 11 remaining nations, following the USA withdrawing last year, have revived the agreement that will eliminate more than 98 percent of tariffs in the free-trade zone.  The deal...

Drop in the cost of butter leads to small fall in food prices

[15 January/ Radio NZ Business] Figures from Statistics New Zealand show that food prices fell 0.8% in December compared to the month before on the back of cheaper fruit and vegetables and grocery prices.  The price of butter also fell to an average of $5.46 for a 500g block.  Despite prices falls for many types...

Meat, dairy soften sales total

[10 December/ NZ Herald] Data from Statistics New Zealand showed the volume of all manufacturing sales rose a seasonally adjusted 0.3 percent for the quarter, while the value increased 0.5 percent. ASB Senior Economist, Jane Turner said the increase was small compared to other periods due to the weak meat and dairy sales volumes. Ms...

Dairy-farm finances healthier, FSR says

[1 December/ Otago Daily Times] The Reserve Bank’s latest Financial Stability Report showed that most dairy farms were expected to be profitable in the 2017 – 2018 season as higher dairy prices continued to support farm incomes. As a result of this, the performance of banks’ dairy loan portfolios had improved. The report showed that...

NZ carbon price highest in six years

[30 November/ News Room] The New Zealand carbon price has hit its highest level in more than six years due to speculation the Labour Government was likely to lift a cap on the maximum price emitters paid. The price for a New Zealand carbon unit under the Emissions Trading Scheme last traded this morning at...

Govt to reveal plan for foreigners buying NZ farmland

[28 November/ Radio New Zealand] Associate Finance Minister, David Parker has announced that the government would reveal its plan to deal with existing applications for foreign purchases of farmland in the next few days. Mr Parker explained that the new approach would be around how existing criteria were applied, rather than changes to the criteria...

Summerfruit, Meat Industry Association sign GIA Deed

[5 October/ New Zealand Herald] Summerfruit NZ and the Meat Industry Association of New Zealand (MIA) last week signed the Government Industry Agreement for Biosecurity Readiness and Response (GIA) Deed. By signing the deed, Summerfruit NZ and MIA join 15 industry sectors that have agreed to work with government, and each other, to combat the...

Morrinsville farmer not impressed with Labour’s plan for water tax

[19 September/ NZ Herald] Morrisville Farmer, Bradley Pickett said Labour’s plans to tax 1-2 cents for each 1000 litres of irrigation water would cost him about $1,500 a year in taxes. Mr Pickett added that the Green Party’s nitrate tax along with the carbon tax would add the shock, and would likely lead to a...

Farmers seek carrot, not a big stick

[18 September/ Rural News] Morrinsville Dairy Farmer, Lloyd Downing said the protest centred around the disappointment amongst farmers due to the public blaming them for all the environmental problems in New Zealand, including the degradation of the country’s rivers. Mr Downing said he accepted that the expansion of dairying over the past two decades had...