Despite tough farming conditions, agriculture continues to be a key driver in our export economy, according to the latest Statistics New Zealand report.

The value of November’s export goods was $589 million more than the previous year – up 19%.

$3.7 billion of good were exported from New Zealand.

Stuart Jones, Project Manager  for Overseas Trade & Production Surveys, says the trend in export values has risen since October 2009.

“Well, certainly the dairy industry has bounced back,” said Mr. Jones. “High pricing internationally helped with those sort of commodities and increasing exporting to the China market as well.”

Mr. Jones confirms the milk powder, butter, and cheese commodity group was the major contributor to the increase in November export values, led by unsweetened whole milk powder.

Federated Farmers economics spokesperson Philip York says half the top ten merchandise exports in the year to November 2010 were from the agricultural sector, accounting for $1.78 billion out of the total value of $2.41 billion – or 73%.

“Well, it’s really showing that agriculture products and products of the land are doing very well,” said Mr. York. “The loss of lambs down south will feed into the figures later but a lot of it’s actually in the price of the product rather than the amount of product.”

Mr. York says the star performers were dairy, up 23% and forestry, up almost 25%. Wine was also up 8.4% although meat was down 5.1%.

Mr. York says the industry expects this season’s lamb crop to be off around 10% due to drought and the Southland and South Otago storms.