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New Zealand Agribusiness Report Q2 2015

69 Pages BMI Research April 01, 2015 SKU: BMI5478831

New Zealand Agribusiness Report Q2 2015

BMI View: We believe that increased access to international markets, particularly Taiwan and China, willprove to be the prime growth driver for the agribusiness sector in New Zealand over the medium to longterm. This will be supportive for both the dairy and the livestock segments. The dairy sector in particularwill benefit from export demand growth, as many other countries in Asia are facing growing domesticdemand and relatively limited production capacity. However, the outlook for the sector is weak for 2014/15.We forecast milk production to grow by a weak 0.7% year-on-year to 21.9mn tonnes, compared with the4.0% growth recorded in 2013/14 and the five-year growth average of 4.3%.

Key Trends

Milk production growth to 2018/19: 8% to 23.7mn tonnes. Given the small domestic consumptionbase and the high productivity of the sector, long-term expansion will mainly come from exportopportunities, particularly to Asia and the Middle East, which are forecast to enjoy significant dairyconsumption growth over our forecast period.

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New Zealand Agribusiness Report Q2 2015

BMI Research
April 01, 2015

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