Today Online 20 Mar 08;
WELLINGTON — The drought gripping many parts of New Zealand is expected to cost the country's farmers NZ$1.24 billion ($1.38 billion) in the year to June, the government said yesterday.
Little rain has fallen through many parts of the country during the southern hemisphere summer, cutting output in the key export industries of dairy, beef and sheep farming, Agriculture Minister Jim Anderton said.
"There can be no question that the impacts of this drought on farming families, rural communities and the rest of New Zealand are severe and will be felt for several years to come," Mr Anderson said.
A boom in world dairy prices is cushioning the impact on dairy farmers, despite production being cut by NZ$894 million in the current financial year to June, according to Ministry of Agriculture figures.
Sheep and beef farmers are expected to lose NZ$345 million and the drought could not have come at a worse time for them because they had been receiving relatively poor returns, Mr Anderton said. — AFP
