Mid Canterbury Economic Overview
Region & Location
Latitude: 43.54S Longitude: 171.45E Altitude: 101m
Mid Canterbury is located in the centre of New Zealand's South Island between the Rakaia and Rangitata rivers and between the Pacific Ocean and Southern Alps.
Predominantly a food producing district, the region has an excellent reputation for agricultural production. A temperate climate and reliable water supply create ideal conditions for the production of a broad range of crops milk production and livestock farming.
The region has excellent infrastructure, transport links, road, rail and aerodrome. Christchurch City and international airport is 85km north, and two seaports are nearby: Port Lyttelton (Christchurch), 77km north, and Port Timaru 65km south.
A new state of the art business estate provides excellent infrastructure and business location options with a skilled and stable workforce nearby. High quality community services for health, education, entertainment, sport and creative fulfilment attract and maintain a quality workforce.
Figure 1 Mid Canterbury Location Map
Land
Comprising an area of 6,175km2 of which approximately 500,000 ha is actively farmed, including high country. Soil quality varies from extremely productive areas to lighter, less productive soils. Irrigation and careful application of fertiliser continues to improve the land's productive capacity.
The district has the largest area of flat land in any farming district of New Zealand approximately 250,000ha of which around 66% is irrigated by way of the 'Rangitata Diversion Race' irrigation scheme and ground water wells. The Rangitata Diversion Race is the largest scheme of its kind in New Zealand. The project was developed about 65 years ago and has been a major driver of economic development.
Land use
Agricultural land use in 2010 was determined as:
| Sheep only | 10% |
| Beef only | 4% |
| Sheep and Beef | 31% |
| Deer | 3% |
| Contract Grazing | 2% |
| Dairy Milking (Dedicated Dairy land) | 11% |
| Intensive Cropping | 13% |
| All Other | 2% |
| Native Bush | 22% |
Climate
Rainfall varies from 600mm p.a. near the coast to 1,000mm p.a. near the foothills. A temperate climate and good water supply create ideal conditions for production of a broad range of crops. Summer temperatures up to 35°C with an average of 25°C. Night temperatures range from 12 – 15°C. Winter extremes with overnight lows down to -5°C and up to 14°C in the daytime
Population
Ashburton District (Mid Canterbury) was the 3rd fastest growing district in NZ in 2011. The current estimated population of Mid Canterbury District is 30,100 with approximately 60% of the population, living in the main town of Ashburton. Ashburton town is the 3rd largest urban centre in Canterbury. The next two largest towns in the region: are Methven (5% of population) and Rakaia (4%), are the fastest growing areas in the district.
Ethnicity
Ethnicity is 90% European, reflecting settlement in the 1800's by predominantly English, Irish and Scottish immigrants. The balance of ethnicity is as diverse as the rest of New Zealand.
Workforce
The workforce totals approximately 16,539 employees. Mid Canterbury has very low unemployment and high workforce participation rates and employment.
Infrastructure
The district boasts quality, modern infrastructure such as electrical transmission, road and rail links, aerodrome, water reticulation and waste water treatment, broadband (including a major fibre optic cable upgrade currently underway) and a 126 ha state of the art business park.
Major Industries
Agri-business, particularly food production, is the district's major industry followed by engineering and tourism. The engineering industry boasts considerable manufacturing skill and expertise, the tourism industry includes an internationally renowned ski field — Mt Hutt.
Key Sectors
Together these sectors account for just under 50% of the district's GDP.
- Meat and fibre
- Arable cropping
- Dairy Sector
- Engineering & Agricultural Servicing
- Tourism
- Intellectual Property Industries
Economic Summary
Growth
- 8th fastest GDP in N.Z over last 2 years
- 11th fastest GDP in N.Z. over 5 years
- 1.7 times faster GDP growth than New Zealand and Canterbury over last 3 years
- 6th largest employment growth in N.Z over last 5 years
- 2008 ranked 4th most successful regional economy by BERL
Production
Mid Canterbury is arguably the most productive area for dairy farming in New Zealand;
- Thirteenth largest number of dairy herds
- Fourth highest cow numbers, behind; Waikato, Taranaki & Southland.
- Second largest average dairy herd size
- Produces the most milk solids per hectare
Mid Canterbury arable industry supplies;
- 50% of world requirements for radish seeds
- 35% of world requirements for white clover seeds
- 33% of world requirements for carrot seeds
- 30% of world requirements for Bok Choi seeds
- 25% of all NZ feed grains
- 60% of the seeds for growing pasture — underpinning a $9bn export industry
Other Productive Sectors
Additionally the region is noted for:
- Agri-business innovation, including precision agriculture
- NZ leading agri-business consultancy industry
- Medical technology manufacture
- New generation diabetic and health socks manufacture, world leading research
- Major secondary share registry
- Leading national plastics engineer and manufacturer
- Ground breaking plant oil seed extraction
- World leading kite manufacturer — largest kites, sail kites etc.
- Internationally renowned Rolls Royce & Bentley service and restoration centre
- The country's first commercial robotic dairy farm
- High value grain fed beef producer supplying high end Asian market
- Engineering firms that are typically 1.5 times larger than other regions and arguably more versatile
World Leading Opportunity
With world population set to increase from 7bn to 9bn, these additional 2bn people have to be fed. Growing middle classes in Asia and India can afford to pay for quality food products and Mid Canterbury is uniquely placed to capitalise on these food supply opportunities.