New Zealand arable sector : foreign exchange implications

Abstract

This report presents the findings of a study into the foreign exchange earnings of the arable sector in New Zealand. The F.O.B. value of arable sector products (or C.I.F. value of wheat) is assessed and from this the foreign exchange component of crop inputs is deducted. The major cropping enterprises are then compared with livestock production in the arable sector. In Chapter 2 the basic concept for assessing the foreign exchange (F.E.) of on farm production costs is discussed in detail while Chapter 3 describes the arable sector in New Zealand and assesses the volume and value of arable production as well as trends in land use patterns. Chapter 4 evaluates the foreign exchange requirement (imports) of the major crop and Livestock enterprises in the arable sector while the gross foreign exchange earnings (exports) of these enterprises are assessed in Chapter 5. Chapter 6 compares the net foreign exchange earnings with the returns actually experienced by the grower and looks at the foreign exchange earnings of various band use options. Chapter 7 concludes the report.