Federated Farmers welcome signs of rebalancing

The latest Statistics NZ trade data, released today, is evidence of a long awaited export-led rebalancing of the economy.

"Seasonally adjusted export values rose by over 10.4 percent in the March 2010 quarter led by primary exports, particularly dairy, up 29.2 percent and meat, which is up 8.4 percent," says Philip York, Federated Farmers economics and commerce spokesperson.

"It shows why New Zealand's present and future is in the production of food. There's massive scope to grow volumes through policy and water storage, let alone value.

"It's notable that there was also a $1.2 billion trade surplus for the March quarter, which has helped slash the annual deficit from $4.7 billion this time last year, to only $194 million this year.

"The agricultural sector is clearly driving the economic recovery. Maximising that is what Federated Farmers wishes Government would focus on.

"However, the Emissions Trading Scheme (ETS), other Government imposed costs and an overvalued exchange rate means we're exporting with one arm tied behind our back. We have a golden opportunity to massively grow value, if we're allowed to," Mr York concluded.