Lincoln University agribusiness commentator Keith Woodford says the Ministry of Agriculture & Forestry is painting a very positive outlook for the primary sector in its latest forecast.
MAF has released its latest Situation and Outlook report, that looks at issues facing the primary sectors as well as the trends over the next five years.
It forecasts that dairy, meat, wool and timber prices will remain at their current high levels over the next few years.
It says production and demand from emerging Asian markets will increase, while the New Zealand dollar will depreciate.
Agribusiness Professor Keith Woodford says the outlook is very optimistic, but there is still volatility in commodity markets, so farmers should be careful with their spending.