19 Jun 2011

MAF report rosy across most sectors

12:00 pm on 19 June 2011

The national horticulture body says there is still plenty for the sector to smile about, even though price rises have not been as spectacular as they have for pastoral farming.

In its latest Situation and Outlook report, released this week, the Ministry of Agriculture and Forestry (MAF) predicts dairy, meat, and wool prices should remain at their current high levels over the next five years.

Pointing to the PSA vine disease in kiwifruit and the oversupply of grapes and wine as ongoing challenges, it says New Zealand's main horticultural crops have not had the same lift in returns.

However, the report still expects earnings for the two main export crops, kiwifruit and pipfruit, to improve over the five-year period.

Horticulture New Zealand chief executive Peter Silcock says the sector can look forward to steady growth and new opportunities.

Mr Silcock says the sector remains focused on its target of becoming a $10 billion industry by 2020.