The southern data was contained in a national economic analysis by the New Zealand Institute of Economic Research, and shows dairy sector exports last year were worth $10.4 billion and the sector accounted for 2.8% of the country's gross domestic product, 40% more than the utilities sector combined and greater than the GDP of fishing, forestry and mining combined.
As a comparison, Statistics New Zealand said international tourists to New Zealand in the year to March this year spent $9.5 billion and in the 2009 calendar year, the Ministry of Economic Development said international visitors spent $1.1 billion in the Mackenzie, Waitaki, Otago and Southland districts.
Fonterra chief executive Andrew Ferrier said in an interview New Zealanders should celebrate the sector's success and realise the whole population benefited.
"It highlights to the wider public the importance of the industry to all of us in New Zealand, and I guess we are looking for a bit of appreciation," he said.
The report showed everyone's standard of living benefited from having a globally successful dairy export industry, which should be celebrated.
In addition to being economically successful, the dairy industry was addressing its environmental effect.
Last year, farmers failed to meet or better just one standard set out in the Clean Streams Accord, effluent manage ment.
Efforts were continuing to address that, he said.
"A lot of critics tend to ignore the good, and drive in on the bad," he said.
The report showed that for every $1 a kg of milksolid increase in Fonterra's payout, every New Zealand citizen benefited by $270 through economic activity, and an extra 4600 full-time equivalent workers were employed by the wider dairy industry.
Dairy farmers spend about $3.6 billion, or 50c of every dollar earned, on domestically produced goods and services, including fertiliser, feed, and services.
The industry's regional effect was pronounced, contributing $182 million to the Clutha economy and $710 million, the highest in the country, to the area covered by the Southland District Council.
The NZIER economists calculated Southland's GDP last year was 1.3% higher because of dairying, and Canterbury's 1.4% higher; and that one in four jobs in the Waimate district was linked to the dairy industry.
Of the $10.4 billion earned in dairy exports, $7.5 billion was spent buying milk from farmers, $1.5 billion in wages and capital, $625 million on locally sourced plastic containers, electricity and financial services, $310 million on imported products and $730 million in getting dairy goods to market.
However, the report says exporting industries which compete with dairying, such as sheep and beef, wine and horticulture, are affected.
"In addition, the appreciation of the New Zealand dollar that results from increased exports of dairy products hurts all exporters, as seen by the drop in production of the textile and horticulture sectors."
As a result of being "crowded" by dairy, grRoMaN+777
owth in the sheep and beef industries was 10% less than it could have been, the report said.
Export income from dairying helped reduce the current account deficit and reduce the amount New Zealand needed to borrow and pay in interest.
Growth in the last decade had made New Zealand households $6.4 billion better off than if the industry had stagnated at 1999 levels, and had reduced the ratio of net foreign liabilities to GDP by more than 1%.
Together with exchange rate appreciation, the NZIER economists calculate this has saved households $1.2 billion in cumulative interest repayments on foreign debt over the last decadeRegional value of dairy production in 2009
Regional value of dairy production in 2009
Southland $710m.
Timaru $185m.
Clutha $182m.
Waitaki $147m.
Gore $145m.
Waimate $143m.
Invercargill $67m.
Dunedin $50m.
Mackenzie $16m.
Central Otago $14m.
• Dairy exports of $10.4 billion last year accounted for 26% of total NZ exports.
• Employs 34,000 people and another 10,000 self-employed.
