Economic Impact of the 2007 East Coast Drought on the Sheep and Beef Sector
National Economic Impacts
Table 11 Indicates the economic impacts of the drought at the East Coast and national levels, over the 2005/06-2008/09 period. The East Coast figures are based on the information provided in Table 7, whilst the remaining national figures are based on national economic impact modelling results generated by the University of Waikato for the purposes of this report.
Table 11: East Coast and New Zealand Economic Impacts of the 2007 Drought affecting the Sheep and Beef Farming Sector
| Year/Area | Gross Output($M) | Value-Added/GDP($M) | Net Household Income ($M) |
|---|---|---|---|
| 2005/06 | |||
| - East Coast Region | 5,215.9 | 2,195.2 | 809.4 |
| - Rest of New Zealand | 1,594.0 | 1,850.9 | 790.4 |
| - Total New Zealand | 6,809.9 | 4,046.1 | 1,599.8 |
| 2006/07 | |||
| - East Coast Region | 6,182.6 | 2,527.5 | 893.3 |
| - Rest of New Zealand | 1,889.3 | 2,156.1 | 937.1 |
| - Total New Zealand | 8,071.9 | 4,683.6 | 1,830.4 |
| 2007/08 | |||
| - East Coast Region | 4,155.7 | 1,980.0 | 719.8 |
| - Rest of New Zealand | 1,270.0 | 1,679.5 | 633.9 |
| - Total New Zealand | 5,425.7 | 3,659.5 | 1,353.7 |
| 2008/09 | |||
| - East Coast Region | 4,595.6 | 1,869.0 | 755.8 |
| - Rest of New Zealand | 1,424.6 | 1,588.7 | 712.9 |
| - Total New Zealand | 6,020.2 | 3,457.7 | 1,468.7 |
Over the full period, the total national economic impacts of the drought are:
• A Gross Output fall of $790 million or 12%. Gross Output increases by $1,262 million in 2006/07, falls by $2,640 million in 2007/08 but then increases by $594 million during the 2008/09 year.
• A Value-Added/GDP decline of $588 million. Value-Added increases by $638 million in 2006/07, falls by $1,024 million over 2007/08 and by a further $202 million in 2008/09.
• Net Household Income falls by $131 million. This variable increases by $231 million in 2006/07, falls by $477 million in 2007/08 and increases by $115 million in 2008/09.
Contact for Enquiries
Manager
North Island Regions
Sector Performance Policy
MAF Policy
Hamilton
NEW ZEALAND
Phone: +64 7 957 8313
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