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Agriculture & Trade Hon David Carter MP & Tim Groser MP

Agriculture & Trade Hon David Carter MP & Tim Groser MP. FOCUSED ON WHAT MATTERS. FARMING IN NEW ZEALAND Agriculture is important for all New Zealanders Agriculture is the backbone of our economy – it’s what keeps the lights on and the engine running

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Agriculture & Trade Hon David Carter MP & Tim Groser MP

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  1. Agriculture & Trade Hon David Carter MP & Tim Groser MP FOCUSED ON WHAT MATTERS

  2. FARMING IN NEW ZEALAND • Agriculture is important for all New Zealanders • Agriculture is the backbone of our economy – it’s what keeps the lights on and the engine running • We must all ensure it can continue to grow and prosper Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  3. AGRICULTURE & THE ECONOMY • 51% of exports. • 17% of GDP (direct and indirect). • High productivity. • Farm spending benefits cities and towns. • Drought impacts on GDP Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  4. Productivity Comparison 122% usual Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  5. Ag Contribution to GDP Ag +98% Rest+51% Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  6. THE DAIRY GIANT • NZ’s largest export industry – 27% of total exports • Fonterra is NZ’s largest company with operating revenue of $13.9 billion in 2007 • Capitalisation of NZ dairy industry now over $50 billion vs a total capitalisation of $44 billion for the NZX Top 50 • World demand for dairy is growing approx 2% p.a – roughly equivalent to the total dairy output from NZ Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  7. MAJOR EXPORTS – MAY 2008 • Dairy Products: $9.4 billion (up 28%) • Meat: $4.6 billion (down 3%) • Forestry: $2.7 billion (down 8%) • Hort & Arable: $1.9 billion (up 11%) • Wine: $0.8 billion (up 11%) • Wool: $0.6 billion (down 8%) Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  8. MAJOR MARKETS • Dairy = US, Japan, China, Australia, Indonesia, Mexico & Saudi Arabia • Wool = European Union (42%), Northern Asia (29%), Southern Asia (13%) • Lamb = European Union, North America, North Asia & the Middle East • Beef = North America, North Asia, South Asia & European Union Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  9. CHALLENGES FOR AGRICULTURE – FARM PROFITABILITY Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  10. CHALLENGES FOR AGRICULTURE – FARM EXPENSES Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  11. CHALLENGES FOR AGRICULTURE • All farm inputs up 24% since 2001 • Fuel up 78% since 2001 • Electricity up 75% since 2001 • Govt fees & charges up 38% since 2001 • Fertiliser prices up 90% for the year ended June 08 Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  12. CHALLENGES FOR AGRICULTURE • Climate Change & ETS • Environmental pressures • RMA reform & excessive regulation • Property rights • Growing urban/rural divide • Trade access/liberalisation Focused on what matters www.national.org.nz 72nd National Party Annual Conference

  13. With Thanks To: • Federated Farmers • Meat & Wool New Zealand • Fonterra Focused on what matters www.national.org.nz 72nd National Party Annual Conference

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