Media Release - New Zealand’s pasture “a $20 billion crop”

Pasture is a crop which delivers billions to New Zealand’s total GDP, and as a country we need to continue to invest in its development.

“All our dairying and beef and sheep farming operations are dependent on our pastures,” says Pasture Renewal Charitable Trust (PRCT) chairman, Murray Willocks. “Pastures are the basis for much of our rural sector’s productivity and sustainability. As a country we cannot afford to take them for granted.”

Total GDP contribution from the major pastoral industries, dairying, and sheep and beef farming, is estimated at $20.5 billion (12.1% of New Zealand’s total GDP), with farm-gate value of $10.2 billion.

“As we look to economic growth, we should look at investment in pasture as a key contributor.”

An economic analysis of the value of pasture by Business and Economic Research Limited (BERL) commissioned by PRCT presents a compelling argument for an increased investment in pasture renewal by New Zealand farmers, Mr Willocks says.

The study concludes that increased pasture renewal would increase farm-gate value by 16.4% per annum, putting an additional $1.6 billion a year into the national economy and farmer incomes.

“To achieve a similar increase in the tourism sector, New Zealand would need to attract approximately 460,000 international tourists additional to the present 2.4 million that currently visit,” Mr Willocks says.

Mr Willocks says current rates of pasture renewal are low.

“Approximately 2% of sheep and beef farm pastures are renewed annually, and approximately 6.1% of dairy farm pastures. The BERL report provides a clear indication of the potential value that can be achieved by farmers, and the farming industry as a whole, from investing in the quality of their pasture.”

“Pastoral farming will be a cornerstone of the New Zealand economy for generations to come, so maintaining the long term health and productivity of pasture needs to be a national priority.”