NZ Seed and Grain Sectors Face Mounting Pressures Amid Rising Costs and Factory Closures

New Zealand's agricultural seed and grain sectors are facing mounting pressures due to rising operating costs, wet weather, import competition, and succession issues.

The $64 billion food and fibre industries rely heavily on these sectors, which earned around $325 million annually from exports. The majority of this revenue comes from pasture and vegetable seeds sold primarily to the European Union, Australia, the United States, Japan, and China.

However, local farmers are facing dwindling options for selling their produce as major food companies like McCain Foods and Heinz Wattie's have announced factory closures and product line cuts. Malteurop will also shut its Rangitikei malthouse later this month.

Chief executive Sarah Clark of Seed and Grain New Zealand emphasized the importance of a resilient and sustainable arable sector, citing domestic production as essential to food security, agricultural productivity, export performance, and regional economies.