Drought Update

MAF drought reports released today by John Luxton, Minister for Food, Fibre, Biosecurity and Border Control, advise that, as a result of rain during January, all areas of the North are now considered to be out of the drought.

Mr Luxton said the latest report today showed rainfall had been enormously beneficial to major sectors such as sheep and beef, dairying and pipfruit, but had made the harvesting of arable crops difficult.

In the South Island, by contrast, no significant rain had fallen in the drought areas. The situation in Canterbury, Otago and parts of Southland continued to worsen.

Because North Island farmers are expected to lose less production than estimated earlier, MAF has now reduced its 19 January estimate of the cost of the drought in the two years to 30 June 2000 by $80m to $300m, Mr Luxton said.