Manya Rathore
Research expert covering India
Agriculture in New Zealand - statistics & facts
The agriculture industry in New Zealand contributes significantly to the country's tradeable economy, with a gross domestic product contribution in the billions of New Zealand dollars. The farming sector produces many horticultural, dairy, and meat products consumed locally and exported overseas. The agriculture industry also provides job opportunities for tens of thousands of people. The industry is affected by changing weather patterns, global supply and demand, and economic conditions. Promoting New Zealand exports is at the forefront of government policy and trade agreements today.
The major horticultural products in New Zealand include wine grapes, kiwi, potatoes, and apples, to name a few. New Zealand's horticulture production contributes to the needs of the growing global population. Australia is one of the leading export destinations for fresh New Zealand-grown fruit and vegetables and processed goods such as wine. New Zealand wine has developed a strong reputation with the export value of wine valued at over two billion New Zealand dollars.
Today, the dairying industry provides the most value to New Zealand's export economy. The country is a world-leading dairy producer and exports the majority of milk produced in the country. Over time, the dairy industry has grown due to product diversification and innovation. However, there are still challenges facing this segment. Contamination troubles and legal issues led to Fonterra, New Zealand's largest dairy co-operative, recording a significant NPAT loss in fiscal year 2019. The company has since recovered and has recorded a net profit from the fiscal year 2020 until now.
The global Agtech market value is forecast to grow substantially over the coming years. Global smart farming investment is high, and combined with the country's roots in agriculture and growing tech industry, this provides an opportunity for New Zealand to establish itself as an AgriTech nation.
New Zealand’s agricultural production
New Zealand's diverse landscape allows various forms of pastoral farming to dominate in different regions. Sheep farming, beef cattle farming, and dairying are all activities that contribute to the country's livestock industry. Sheep farming has historically played a significant role in developing New Zealand's economy and was the most important segment of the farming industry from 1856 to 1987. Sheep farming provided the valuable export commodity wool and meat for local trade, and job opportunities for sheep farmers were abundant during this period. As the economic value added by this industry has declined over the years, so has the number of sheep livestock in the country.The major horticultural products in New Zealand include wine grapes, kiwi, potatoes, and apples, to name a few. New Zealand's horticulture production contributes to the needs of the growing global population. Australia is one of the leading export destinations for fresh New Zealand-grown fruit and vegetables and processed goods such as wine. New Zealand wine has developed a strong reputation with the export value of wine valued at over two billion New Zealand dollars.
Today, the dairying industry provides the most value to New Zealand's export economy. The country is a world-leading dairy producer and exports the majority of milk produced in the country. Over time, the dairy industry has grown due to product diversification and innovation. However, there are still challenges facing this segment. Contamination troubles and legal issues led to Fonterra, New Zealand's largest dairy co-operative, recording a significant NPAT loss in fiscal year 2019. The company has since recovered and has recorded a net profit from the fiscal year 2020 until now.
Future agricultural trends
The future of the agriculture industry in New Zealand will be driven by rapid population growth and consumer demand. As with global trends, organic farming in New Zealand has also seen an increasing market share in the horticulture and livestock sectors. Innovative farming methods will be required to maintain integrity in production processes and ensure sustainable approaches.The global Agtech market value is forecast to grow substantially over the coming years. Global smart farming investment is high, and combined with the country's roots in agriculture and growing tech industry, this provides an opportunity for New Zealand to establish itself as an AgriTech nation.
