Agriculture and Forestry in the Nation's Economy
Economic History
New Zealand emerged from the Second World War with its industrial and agricultural capacities intact, in a world facing major shortages of consumer and agricultural goods. The country grasped these opportunities so effectively that in the early 1950s New Zealand's Gross Domestic Product (GDP) per capita was exceeded only by Switzerland. But this prosperity was not to last. Reliance on the primary production base, combined with a highly protected economy, oilshocks, and the United Kingdom entering the European Economic Community, resulted in a relative decline in per capita GDP throughout the 1970s and 1980s.
Since 1984 successive governments have embarked on a series of economic reforms across all sectors of the economy. For agriculture this meant the removal of almost all producer and exporter subsidies and incentive payments. The effects of this were balanced in part by the elimination of import licensing systems and import quotas, and by dramatic reductions in tariff protection. Most consumer subsidies were also removed.
The exchange rate was changed from a fixed to a floating system, and the central bank (the Reserve Bank) was assigned the overriding role of controlling inflation.
The Public Service
was restructured to improve accountability, reduce costs and focus on
priorities. Many services were supplied on a "user pays" basis. Several
government-owned industries were restructured as State-Owned Enterprises, which
were required to work as closely as possible to a private sector model. Some of
these industries were subsequently sold to the private sector.
The flexibility of the labour market was increased, mainly through reducing the
influence of organised labour.
The economic reforms of the past two decades have created a strong foundation
for sustainable economic growth. The New Zealand economy is now one of the least
subsidised and most open economies in the world, an essential factor for a
nation so reliant on trading.
Contributing
to the Economy
New Zealand's temperate climate and fertile soil make the country ideal for almost every kind of land-based production - from sheep and cattle, to cropping, horticulture and forestry. The agriculture and forestry sector is one of the largest sectors in the New Zealand economy. Together with its support and processing components it regularly contributes more than $21 billion per year, or about 20 percent of Gross Domestic Product.
The sector's major exports include meat, wool, dairy products, wood products, horticultural products, and many specialised products supplying niche markets around the world. The nation's meat processors annually produce 660 000 tonnes of beef and veal, 430 000 tonnes of lamb and 110 000 tonnes of mutton. The dairy sector exports over 370 000 tonnes of butter, 290 000 tonnes of cheese and 140 000 tonnes of casein products. The forestry industry produces the equivalent of 23 million cubic metres of wood and exports the roundwood equivalent of 16 million cubic metres, of which 9 million is unprocessed logs and chips. The horticulture industry produces and exports about 65 million trays of kiwifruit and 17 million cartons of apples each year.
Providing Jobs for New Zealanders
The agricultural
industry is a major employer. At the time of the last census, March 2001, there
were 114 000 people employed in agricultural production, measured at the farm
gate, making up 7 percent of total employment in New Zealand.
Of this total, 26 900 worked in horticulture and fruit growing, 36 600 were in grain, sheep and beef cattle farming, 35 000 were in dairy cattle farming and 15 500 worked in poultry and other livestock farming.
Activities beyond the farm gate raised employment in the agricultural industry to 189,000, or about 12 percent of total employment in New Zealand.
Forestry and first-stage woodprocessing employed 22,500 people in 2002, 1.3 percent of the workforce.
New Zealand Ministry of Agriculture and Forestry
MAF's mission is to advance agriculture, horticulture, forestry and food sectors for the benefit of all New Zealanders.
MAF wants to see, and contribute to, a future where New Zealanders celebrate dynamic, scientifically sophisticated and prosperous agricultural, horticultural, forestry and food sectors that lead growth and innovation in the economy and underpin our ability to achieve the economy, environment and society to which all New Zealanders aspire.
MAF is responsible for developing, administering and certifying standards and systems, facilitating market access, and managing agricultural, forestry and horticultural biosecurity. It also manages the government's forestry interests and commitments.
MAF aims to protect New Zealand's competitive advantage as an exporting nation by protecting its animals, plants, forests and fisheries against the introduction of exotic pests and diseases.
MAF also has the important role of providing policy advice to the government on the trading environment, sustainable resource use, the regulation of product safety, and biosecurity and related matters.
Federated Farmers
Federated Farmers
represents over 18 000 farming and rural family members throughout New Zealand.
A network of 23 provinces, together with associated area networks or branches,
provides a locally based, democratic organisation that gives farmers a
collective voice nationally and within each region. Federated Farmers is
affiliated to the International Federation of Agricultural Producers, a
worldwide group of farming organisations. The Federation is governed by a
National Council that meets twice a year, and a National Board that meets
bi-monthly, comprising of the President, Vice-President, two National Board
Members and three Industry Group Chairs. The national office in Wellington
provides a centre for policy development, advocacy, lobbying and legal services.
Federated Farmers publishes Federation Update, a quarterly member's magazine, a
weekly electronic newsletter, The Flash, a website (www.fedfarm.org.nz)
and maintains a section in the fortnightly agricultural newspaper, Straight
Furrow.
Contact for Enquiries
MAF Information Services
Pastoral House
25 The Terrace
PO Box 2526
Wellington, NEW ZEALAND
Fax: +64 4 894 0721
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