13 Feb 2013

NZ agribusiness has opportunities - and challenges

1:58 pm on 13 February 2013

Rabobank's latest report on the agricultural sector says a high exchange rate and more environmental regulation are among the challenges facing New Zealand agribusiness in 2013.

Senior analyst Hayley Moynihan says the industry is well positioned to continue capitalising on Asia's economic boom.

However she warns several factors could harm its competitiveness, including the elevated New Zealand dollar against the US currency.

Increasing environmental regulations, such as Horizons regional council's One Plan, can erode competitiveness on the basis of the cost of production, but also enhance New Zealand's reputation as a safe food producer.

Ms Moynihan said that is important if exporters want to maximise the opportunities in Asian markets, which provide the biggest opportunities for agricultural producers.

She said Asia will be a driving force for agricultural growth world wide in the next decade.