Farm Economics: Brighter times ahead for farmers – Carter
April 26th, 2010
Despite the predictions of the “KPMG Agribusiness Agenda” report (see p1) farmers have a buoyant long term future once the current economic squeeze on the rural sector eases up says Agriculture Minister David Carter. He says with primary sectors generating around two-thirds of NZ’s merchandise export earnings, there is sufficient scale, market share and well-developed supply chains to ensure true international competitiveness. Carter says “the world is facing two major challenges – climate change and feeding a growing population. It is common sense food be produced in the most suitable locations, and by the most efficient producers. NZ can offer both of these in spades.” Global population growth means world food production has to grow by 50% in the next 20 years.
Coupled with this is the strong likelihood of economic growth in NZ’s key trading block of Asia-Pacific nations – and this can only mean better market access conditions for NZ agricultural products across the world. Carter predicts fresh water will also play a growing role for NZ. “Water is possibly this country’s biggest competitive advantage, but a changing climate has meant security of supply for activities like farming and horticulture – as well as the ability to meet the demand of towns and cities – is no longer a given.”
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