Agriculture Minister Todd McClay has praised New Zealand’s primary sector for delivering record export growth while outlining a series of government initiatives aimed at boosting productivity, reducing compliance costs and expanding international market access.
Speaking at the Primary Industries New Zealand Summit, McClay said the food and fibre sector was forecast to generate $64.3 billion in export revenue in the year to June 2026, driven by strong dairy, meat and horticulture returns. “There has never been a better time to be a food producer,” he told delegates, arguing that farmers were succeeding despite weather challenges, volatile global markets and rising geopolitical uncertainty.
McClay said the Government remained committed to its goal of doubling export earnings within a decade and claimed progress was already ahead of schedule. He highlighted forecasts showing dairy exports reaching a record $28.6 billion, while meat and wool are expected to contribute $14.1 billion and horticulture nearly $9.5 billion. He credited farmers, growers and processors for driving economic growth and supporting jobs in regional communities.
The minister also defended the Government’s regulatory reforms, saying previous rules had created unnecessary costs and uncertainty for farmers. He pointed to changes already made to environmental regulations and reaffirmed plans to replace the Resource Management Act with a simpler planning framework. “Improved environmental performance is a must — but it can and should be achieved without imposing unnecessary and excessive costs on the primary sector,” he said.
McClay announced further support for farmer-led catchment groups, including a $40.5 million funding package over four years, and highlighted a new Minister of Agriculture Future Leaders Scholarship that will provide five annual grants of $10,000 to emerging leaders in agriculture, horticulture and forestry.
Trade featured heavily in the minister’s address, with McClay pointing to growth in exports to the United Kingdom, European Union, China and the United States. He described the recently signed New Zealand–India Free Trade Agreement as one of the most significant trade breakthroughs for the primary sector in a generation, saying it would provide improved access for products including lamb, wool, apples, kiwifruit and forestry exports. “We expect lamb exports alone to double within the first year,” he said.
The minister also reiterated the Government’s new land-use flexibility policy, which would allow farmers greater freedom to determine how land is used provided environmental outcomes are maintained or improved. However, he confirmed productive farmland would not be converted to pine forests for carbon farming. McClay said six public-private projects worth $143 million had been launched to demonstrate how innovation could lift production while improving environmental performance. He concluded by pledging continued support for rural New Zealand, saying the Government was committed to ensuring agriculture remained “competitive, profitable, and sustainable for generations to come.”
Image credit: Martin Bisof
