Dairy's role in sustaining New Zealand - Fonterra
Dairy's role in sustaining New Zealand - Fonterra
Dairy's role in sustaining New Zealand - Fonterra
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2 Dairy’s <strong>role</strong> <strong>in</strong> generat<strong>in</strong>g growth<br />
1.3 Contribution to regional <strong>in</strong>comes<br />
In many rural areas, the contribution of the dairy sector to the local economy is far greater<br />
than the national average of 2.8% mentioned above. The dairy sector pumps hundreds of<br />
millions of dollars of revenue <strong>in</strong>to regional economies each year. Table 1 shows the 15 highest<br />
revenue generat<strong>in</strong>g dairy districts <strong>in</strong> <strong>New</strong> <strong>Zealand</strong>.<br />
Dairy production <strong>in</strong>jected over $700 million <strong>in</strong>to the Southland district economy <strong>in</strong> 2009, with<br />
South Taranaki and Matamata-Piako both receiv<strong>in</strong>g well over half a billion dollars. For smaller<br />
district economies such as Ashburton ($471 million), Waipa ($361 million) and Selwyn ($270<br />
million), the value of dairy production, relative to the total size of the district economy, is likely<br />
to be significant 3 . Also see Box story 1.<br />
Table 1 Value of regional dairy production<br />
$ millions, 2009<br />
Region Dairy revenue<br />
Southland 710.35<br />
South Taranaki 616.56<br />
Matamata-Piako 552.12<br />
Ashburton 471.11<br />
Waikato 389.91<br />
Waipa 361.00<br />
Selwyn 269.91<br />
South Waikato 262.53<br />
Rotorua 253.55<br />
Otorohanga 234.54<br />
<strong>New</strong> Plymouth 206.31<br />
Hauraki 196.40<br />
Tararua 188.28<br />
Timaru 185.13<br />
Clutha 181.72<br />
Notes: (1) Based on $5.50 price per Kg MS, 35c per Kg MS for stock sales and 4c per Kg of MS for other <strong>in</strong>come<br />
Source: Dairy <strong>New</strong> <strong>Zealand</strong>, <strong>Fonterra</strong>, NZIER<br />
1.4 Contribution to export performance<br />
Dairy exports were $10.4 billion <strong>in</strong> calendar year 2009, account<strong>in</strong>g for around 26% of NZ’s<br />
total goods exports. As Table 2 shows, this contribution far outstrips that of any other goods<br />
export sector. The third column <strong>in</strong> the table shows that dairy exports are twice those of the<br />
meat sector, over 6 times larger than all fruit exports, n<strong>in</strong>e times larger than w<strong>in</strong>e exports,<br />
twelve times larger than alum<strong>in</strong>ium exports and 17 times larger than wool exports.<br />
In fact, dairy exports are about the same as the sum of the next four largest export sectors:<br />
meat, wood, m<strong>in</strong>eral fuels (oil) and fruit & nuts.<br />
3. Regional GDP <strong>in</strong>formation at this level of detail is not available from Statistics <strong>New</strong> <strong>Zealand</strong>, so the shares cannot be<br />
calculated.