The Economy

Matamata–Piako is one of 10 full and 2 part districts that comprise the Waikato Region. The Waikato Region currently contributes about 10% of the NZ economy. (1)

Depending upon the economic measure used (refer Table opposite), the Matamata-Piako District makes up between 8 and 10.8% of the region's economy.

The five most valuable sectors for the district are

• Dairy Farming
• Wholesale and Retail Trade
• Dairy Manufacturing
• Meat Processing
• Ham and Poultry Processing

These sectors highlight importance of primary production and processing for the District's economy. Farming, agricultural contracting, dairy manufacturing and meat processing collectively account for just under half of all economic activity in the district. This makes the economy vulnerable to changes in the primary farming sectors.

High skilled sectors such as health and business services in Hamilton capture much of the district demand for these services. Accordingly, the district typically imports high valued services such as these from outside its area. This is a common problem for rural districts, such as Matamata-Piako District, located on the periphery of larger cities.

The Waikato Region is well placed to grow with a significant presence in the primary production and processing sectors as well as the forestry and tourism-related sectors. These sectors are considered to be among the main drivers of the country’s future economic growth. This growth may help extend and diversify the 13 Profile of the District 7 economy of the district in the future.

The main sources of income in the district in 1996 were wages and salaries, self-employment and investment income. In addition, a high percentage of the district’s residents are superannuitants. The unemployment rate in the district is 3.3%, comparing favorably with the regional rate of 5.2% and a national rate of 4.9%. (2)