Fairfax Media Network

Weather News

NZ drought could expose Pacific economies: ANZ

Wednesday March 27, 2013 - 13:54 EDT

New Zealand's worsening drought could expose the Pacific region to food price inflation according to a report from the Australia and New Zealand Banking Group Limited.

The ANZ bank's latest forecast suggests Fiji and Samoa are the most likely to be affected by the New Zealand drought, the country's worst in 30 years.

New Zealand-based agriculture economist with the ANZ, Con Williams, told Radio Australia's that depending on the sector and product the drought could influence production for the next two years.



"If you're talking about the livestock sector, they're running down some of their capital stock at the moment because of the drought," Mr Williams said.

"That's going to influence production for the next two years."

Mr Williams says the horticulture sector would recover more quickly if the drought breaks and conditions improve.

The ANZ's report says the economies in Pacific countries could be affected.

The bank says Fiji in particular is growing at a slower pace to similarly rated countries.

"Higher inflation, particularly food inflation, will weigh on other consumption in the Fijian economy," Mr Williams said

"That won't be good for their overall growth profile."


- ABC

© ABC 2013

More breaking news

Sydney Morning Herald
ABC News
National Nine News
News Limited

Display Your Local Weather

Weather News

Dry season in Western Australia forces Wheatbelt farmers to sell off sheep

18:30 EST

The lack of winter rain over much of Western Australia has left many crops to wither and pasture to dry out, with Wheatbelt farmers in particular being forced to sell their sheep.

Late start to winter in Tasmania

12:06 EST

Winter has finally arrived in Tasmania this week after dry and record-breaking warm start to June in Hobart.

Rain drenches Perth but fails to bring many desperate WA farmers relief

16:51 EST

A cold front over the southern half of Western Australia has dumped more than 60 millimetres of rain on Perth, and has given some struggling farmers a boost, but has failed to reach all agricultural areas desperate for a drenching.