A whopping sum of $2.8 billion was lost by the New Zealand economy due to the drought in 2007 and 2008.

A report released by a Ministry of Agriculture and Forestry that the total cost to New Zealand's primary sector was $1.9 billion on-farm and $900 million off-farm.

It should be noted that drought drastically reduced the quality of stock going into the next breeding season, reduced quantity of milk from dairy farms and increased costs due to purchase of supplementary feed.

The report claims that the drought had most adverse effect on Waikato, Manawatu-Wanganui and Taranaki. The drought initiated from the spring of 2007 and continued through to autumn last year.

"Regions extending from Gisborne to North Canterbury and parts of the central North Island were hit by drought again this year, leaving about a quarter of the country still suffering from the effects," said the report.