Budget 2023

$804 million to fund New Zealand’s Cyclone Gabrielle response

New Zealand’s agribusiness industry has had a tough time recently. Cyclone Gabrielle and other adverse weather events, including floods in the North Island and droughts in the South Island, have had a significant impact on productivity. Meanwhile, every sector has seen a profitability compression due to inflationary impacts on costs, particularly on fertiliser. Inflationary pressures are being compounded by a reduction in forecast prices as a result of weaker global confidence and demand.  

How will the Government address the fall out from Cyclone Gabrielle and make sure New Zealand’s agribusiness industry can continue to supply Aotearoa and the world with key produce?  

For Budget expenditure items in relation to the recovery from Cyclone Gabrielle, see our Budget 2023 article here.

Confirmed new policy areas 

  • $804 million to fund Cyclone Gabrielle recovery – see our climate change Budget 2023 article

  • $30 million to scale up New Zealand’s innovative horticulture technology industry, helping to increase productivity in environmentally sustainable ways 

  • $30 million committed to address time-sensitive health and safety and animal welfare challenges in primary sector and rural communities affected by Cyclone Gabrielle 

  • $38 million to design and implement a new regulatory regime for the NZ ETS and a centralised exchange for New Zealand unit trading to improve the integrity, efficiency and trust in the NZ ETS as the system matures, as well as funding to set up an agricultural emissions pricing scheme 

Business impacts and considerations  

Glenn Fan-Robertson BDO Agribusiness Advisory Partner, says:  

“In the face of rising inflation and increased costs, it’s important farmers employ strong financial management processes. Reviewing cash flow regularly and forecasting against different scenarios around movements in production and market prices will help you understand your financial position.” 

Quick tips & questions 

  • Understand any Cyclone Gabrielle support you may be eligible for 

  • Review your cash flow regularly 

  • Forecast against different scenarios in production and market prices 

More information and help available 

At BDO, we genuinely care about seeing your farm succeed. Our agribusiness advisers have specialist farming qualifications and an extensive knowledge of farm systems, as well as broad expertise across accounting, tax and business advisory, so that together, we can make sure your agribusiness is operating efficiently, sustainably and profitably, no matter what challenges come your way. Our specialist agribusiness advisory team provides a one stop shop for all your farming advisory needs, from tax, finance and cash flow, succession planning, sustainability, payroll and technology.  

Reach out to your local BDO office today to learn more.  

For practical tips and advice on how to alleviate the key challenges facing agribusinesses, view our BDO Wellbeing & Business Performance Index Agribusiness sector report here.  

Key contacts