High dollar impacting on seafood returns
12 February 2008
The high New Zealand dollar is putting financial pressure on the seafood industry and New Zealand’s economy, says the
New Zealand Seafood Industry Council’s Chief Executive, Owen Symmans.
The continued high dollar is preventing New Zealand from benefiting from the strong international market prices for
seafood, Mr Symmans said. Market prices in US dollars for most export species have increased over the past year – for
example, ling up by 35%, skipjack tuna 45%, snapper 25%, mussels 10% and hoki by 20%.
“Despite this, the increased export return has been depressed. With 2007’s exchange rate achieving over US79 cents
during the year, sales were worth NZ$1.25 billion compared to NZ$1.35 billion in 2006. The industry’s return is falling
around NZ$20 million for every cent the NZ dollar strengthens.”
Mr Symmans said that this pressure has huge implications for investment in the industry, research and development and
employment opportunities.
New Zealand seafood is sustainably harvested and is the fifth biggest export earner for New Zealand’s economy. Its
reputation for well-managed, sustainable seafood contributes to the premium prices that New Zealand product can expect
overseas, Mr Symmans said.
“It’s worrying that we are not able to maximise investment and consolidation for the industry’s future because we cannot
reap the benefits of the current high market rate for our product.”
ENDS