The arable industry is deeply connected and integrated into New Zealand’s key livestock industries, an economic report shows.
Arable production underpins the productivity of many key primary industries through the supply of grains and seeds directly to both farmers and industry.
The ‘Economic impact of New Zealand's arable industry’ report shows that New Zealand’s arable industry generated $1.2 billion in direct sales in 2024. This was made up of around 1.1 million tonnes of grains, 1.1 million tonnes of maize silage and 83,000 tonnes of seeds.
In additional economic activity, the arable industry’s contribution to total Gross Domestic Product (GDP) increased from $953 million to $1.2 billion between 2021 and 2024. The industry employs almost 7000 people.
The report was commissioned by the Arable Food Industry Council (AFIC), made up of 10 industry organisations connected with research into and the production of arable food.
In terms of food production, arable provides milling wheat for the milling and baking industries, malting barley to brew beer, oats for breakfast cereals and the expanding oat milk industry, as well as seeds for edible oils. In addition, it provides livestock feed, primarily for dairy cows, but also the pig and poultry industries.
New Zealand’s arable sector is also globally recognised for its seed production, producing seed for the domestic pastoral industry as well as export.
AFIC retiring chair Brian Leadley says the three-yearly report recognises the contribution of arable to the wider agricultural sector and economy. It also highlights trends and opportunities.
Expansion of crops such as oats to meet demand for plant-based foods and beverages demonstrates how nimble and adaptable the arable industry is when it comes to meeting market requirements. “However, it’s got to be competitive with other opportunities,” he says.
Rising consumer preferences for plant-based and health-focused products has led to an increase in sales to industry of oats and pulses, with oats increasing by about 2600 tonnes between 2021 and 2024. The report said that continued global demand for healthier and more nutrient-rich food will continue to support further growth in sales of brassica and legume seed.
Domestic pastoral seed production means the dairy and sheep and beef sectors don’t have to rely on imported seeds, Brian Leadley says. “They want varieties bred for New Zealand conditions.” Arable production is also supported by quality assurance programmes.
In 2024, direct sales of seeds for sowing in New Zealand were valued at $411m, with particularly strong sales of grasses, brassicas and legumes, the report by Business and Economic Research Limited (BERL) says.
Direct sales of grain, mainly wheat and barley, were valued at $529m. The wider economic impact of this generated $500m in total production GDP in 2024, up from $420m in 2021.
Foundation for Arable Research general manager business operations and AFIC member Ivan Lawrie says that while grain volumes remained flat between 2021 and 2024, there was a notable rise in the value of seed exports. Worth $345 million in 2024, these were up $72m from 2023. Vegetable seeds remain the largest contributor to overall arable export revenue, at 36 per cent, followed by ryegrass seed at 28 per cent.
In 2024, seed production generated a total of $389m in production GDP, an increase from $253m in 2021.