Economic Impact of the 2007 East Coast Drought on the Sheep and Beef Sector
Conclusion
This report provides an analysis of the economic impacts for the East Coast sheep/beef farming sector and region, of the major drought which struck the area during the first half of 2007.
The results of the analysis indicate a significant gain in the regional economic contribution of the sector during the drought period itself when farmers were forced to sell significant amounts of stock due to rapidly deteriorating pasture and stock conditions. However, due to the major resulting fall in the production base of livestock for the current 2007/08 year, significant decline in lambing and calving rates, and the requirement for farmers to rebuild their herds, this year is expected to see a sharp drop in the economic scale of the sector itself in the region and its wider economic impacts. In 2008/09, a recovery in the overall economic contribution of the sector in the East Coast and its industry linkage impacts to the region, is expected.
During the full 2005/06-2008/09 period, the overall impact of the drought in the East Coast region is a $161 million reduction in the economic scale/Value-Added of the sheep/beef farming sector itself and a $326 million reduction in the overall size of the regional economy when industry linkage/multiplier effects are taken into account. These results compare with a forecast $375 million increase in the overall Value-Added/GDP size of the East Coast economy if the drought had not occurred.
Comparing the drought and non-drought outcomes for the period, the overall result of the event is a $701 million Value-Added/GDP loss over the three-year period.
Contact for Enquiries
Manager
North Island Regions
Sector Performance Policy
MAF Policy
Hamilton
NEW ZEALAND
Phone: +64 7 957 8313
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