6 May 2010

Wool, kiwifruit exporters hit by falling euro

7:59 am on 6 May 2010

New Zealand wool exporters are among those feeling the effects of the falling European currency, triggered by Greece's debt crisis.

The New Zealand dollar has strengthened to a two-and-a-half year high against the euro this week, meaning European customers are having to pay more for products from New Zealand.

The dollar has also strengthened against the British pound.

One exporter, Peter Whiteman of Segard Masurel, says there's been a virtual halt to carpet wool sales to Europe in the last month.

Mr Whiteman says wool sales to Asia are relatively strong, as the falling European currencies accelerate the move of carpet processing to that part of the world.

Kiwifruit marketer Zespri says the declining European currency and correspondingly strong New Zealand dollar is also going to eat into returns from its main export market this season.