The Bay of Plenty's kiwifruit industry will play an important role in supporting New Zealand's export growth to 2017, helping offset the recent year's fall in the dairy sector.

That's the prediction from the Ministry for Primary Industries, which expect meat, wool, horticulture and forestry export revenues to be the strong players going forward.

It is hoped the Bay of Plenty's kiwifruit industry will help boost the country's export growth. Photo: File.

Signs across the primary sector are described as encouraging.

According to MPI's updated Situation and Outlook for Primary Industries, New Zealand's primary sector export revenue is expected to increase to $37.6 billion in the year ending June 2016 – up $1.9 billion from the year ended June 2015.

The horticulture sector outlook is strong, with an expected $700 million export revenue increase forecast in the June 2016 year for this sector, and kiwifruit is expected to be an important part of that increase as yields reach record levels.

Pipfruit and wine revenues continue to grow as wine suppliers utilise past season vintages to support increasing consumer demand for New Zealand products.

The meat and wool sector is also expected to continue its strong growth, with a forecast revenue increase of $910 million to June 2016 due to strong demand for beef exports from the United States.

New Zealand will meet its allowable beef export quota to the USA this season for the first time since 2004, while Chinese demand for wool also remains strong.

Milk production is expected to be down seven per cent this season compared to last, due to current dairy prices. However, prices are expected to rebound by late 2016–early 2017, as current dairy stocks are worked through and demand levels increase.

The forestry sector is forecast to grow $613 million, even though Chinese demand for logs is reduced due to a continuing slowdown in the Chinese construction sector. MPI expects an increase in exported timber volumes to help offset this reduction in log exports.

The seafood sector will be supported by favourable climatic conditions and the opening of two new salmon farms which will contribute to an expected $200 million export revenue increase in this area.

Over the publication outlook period (2016 and 2017), the New Zealand to United States Dollar exchange rate is forecast to track lower than was projected in MPI's June 2015 SOPI publication, increasing New Zealand's expected export revenue figures.

The full report can be viewed here.