South Canterbury’s importance not to be ignored

By Timmi Aplin-Barrett

The contribution of primary sector exports from Timaru and South Canterbury to New Zealand was commissioned from regional economist Benje Patterson by the Economic Development Agency, Venture Timaru.

The Timaru District Council says the report shows food and fibre exports from South Canterbury totalled $3.9 billion and, despite the region only have 1.2 percent of New Zealand’s population, accounted for approximately 7.3 percent of New Zealand’s total food and fibre exports.

The report also shows South Canterbury isn’t being stagnant in their success – they’re continuing to grow and forge ahead.

Over five years, the value of food and fibre exports from South Canterbury climbed 82 percent from an estimated $2.1 billion in 2017 to $3.9 billion in 2022.

By comparison, the report says, other exports from South Canterbury (including machinery, equipment and other manufactured goods) grew by just five percent from $105 million to $110 million over the same period.

Most of South Canterbury’s food and fibre exports are dairy ($2.5 billion), followed by meat and wool ($923 million) and seafood and aquaculture exports ($227 million).

Horticulture and processed food items exports contribute $76 million and $65 million respectively to the total.

Meanwhile, exports of arable crops of grains, grass seeds and vegetable seeds add a further $46 million to the South Canterbury total. Venture Timaru chief executive, Nigel Davenport, says the research confirmed this region was contributing significantly to New Zealand’s export economy and this needs to be substantially better recognised and supported by central government than is currently the case.

“South Canterbury is home to the most diverse range of food processors and manufacturers in a geographically close location than anywhere else in the country who, along with their suppliers and associated servicing industries, are an integral part of New Zealand,” Nigel says. Nigel says South Canterbury punches well above its weight in terms of contribution to New Zealand’s total food and fibre exports, particularly when one considers the region’s relatively small population.

South Canterbury already delivers massive benefits to New Zealand. In an environment where we’re seeing record balance of payments deficits, our government needs to be investing in productive and high performing export sectors of the economy.

According to the Timaru District Council, Timaru’s PrimePort plays a major part in their economic success, with Statistics New Zealand data showing that $1.1 billion of exports from the port in 2021; 99 percent of which were food and fibre products.

Timaru District Mayor Nigel Bowen says that despite the district’s outsized contribution to the national balance of trade, support from Government doesn’t necessarily follow.

“Our powerhouse agricultural sector provides significant income to New Zealand, but much of this production requires good infrastructure to meet its potential,” he says.

“Conservative estimates show that heavy vehicle movements on South Canterbury’s State Highways alone contributes $35 million to the Government through Road User Charges.”

Nigel says that while population-based funding is delivering major highway upgrades to cities, Timaru and South Canterbury are still dealing with one lane bridges on some of their major routes.

“South Canterbury already delivers massive benefits to New Zealand. In an environment where we’re seeing record balance of payments deficits, our government needs to be investing in productive and high performing export sectors of the economy,” Nigel explains.

Calculations using Waka Kotahi data – based on odometer readings at certificate of fitness assessments – shows there were 79.7 million vehicle kilometres travelled (VKT) by heavy vehicles on state highways in South Canterbury in 2022, which is equivalent to about 3.2 percent of all heavy VKT nationally on state highways.

RUC generated for the government by South Canterbury’s heavy VKT share was estimated to be in the order of $35 million in 2022 (out of $1.1 billion of heavy RUC collected nationally). Overall, the report highlights the importance of Timaru and South Canterbury to the rest of the country and, now, key stakeholders are wondering why they seem to be getting the short straw when it comes to government investment. CT