Stable to rising prices for key export products are expected, and together with rising beef numbers, rising dairy numbers, expanding wood volumes, and continuing productivity growth, the outlook for agriculture and forestry is promising. The impacts of the Asian and Russian financial crises and two years of drought had a big impact on New Zealand's earning capacity. More than 60 per cent of our exports are from primary production. While it's no longer true to say New Zealand earns its living on the sheep's back, our farmers and the products of their labour are still critical to the health of our country. The impacts of the Asian and Russian financial crises also show how vulnerable to external factors the New Zealand economy is.
Climatic changes can also cause huge problems for exports.
Currently, it is about US40 cents. This means that the lower exchange rate is likely to mean higher earnings than predicted for exporters in the short term, at least.