Luxton Champions Agriculture As NZ's Economic Engine

Food and Fibre Minister John Luxton today stressed the importance of Food and Fibre to the New Zealand economy while speaking at the McRae Trust Field Day in Wairoa.

"The food and fibre industry is the backbone of New Zealand's economy, contributing three quarters of our exports."

"New Zealand begun the 20th century as an agricultural exporting nation, and at the end of the century, that is still largely the case but the industry has changed significantly as it adds more value and becomes more high tech."

"The agricultural sector alone, excluding other primary industries provides employment for around 250,000 people. The sector as a whole accounts for 15.2 % of New Zealand's GDP. Agricultural exports have expanded in volume terms at a compound rate of more than 2% per year since the Second World War. These are impressive figures."

Quoting a recent report by agricultural economist, Robin Johnson, Mr Luxton said productivity growth in agricultural has been second only to the communications sector.

"New Zealand farmers are the best in the world. The challenge for the future is now to add value to our basic commodities. Innovation is a driving force of economic growth so there is plenty of potential in areas such as biotechnology and value added products", Mr Luxton concluded.