Rural round-up

August 29, 2014

Synlait Milk receives MPI approval:

Synlait Milk has received approval of its Risk Management Programme from the Ministry for Primary Industries (MPI) for its dry blending and consumer packaging plant.

The approval enables Synlait Milk to now pack and export retail-ready product from its manufacturing site, having met the New Zealand food safety requirements of the Animal Products Act 1999.

The only exception is for exports of finished infant formula to China. Documentation required to support Synlait Milk’s application for registration as an exporter of finished infant formula to China was sent to the Chinese regulatory body today by MPI. . . .

Beef + Lamb NZ expenditure on overseas promotion under review - Allan Barber:

Next year sheep and beef farmers will have their five yearly referendum under the Commodity Levies Act when they get to vote on whether they wish to continue funding Beef + Lamb New Zealand as their industry good body.

It was a fairly close run thing last time and actually resulted in the motion to continue with wool promotion being defeated, although this is now back on the agenda. However there is obviously some nervousness about the likely outcome of the next referendum, although this may be unfounded if farmer returns continue to be positive

One element of B+LNZ’s activity which tends to provoke debate among farmers is the use of funds for overseas promotion. Within the last 20 years, and especially more recently, there has been an agreement within the meat industry that promotion should be jointly funded by MIA members and B+LNZ. . .

Westland farmers braced for hard season:

Farmer-shareholders of the dairy cooperative, Westland Milk Products, will be watching spending very closely as the country’s number two dairy cooperative has cut 60 cents per kilogram of Milksolids (kg/MS) to a range of $5.40 – $5.80 kg/MS before retentions.

“Given Fonterra’s hold on its benchmark payout forecast, this isn’t exactly the best news to go into spring with,” says Renee Rooney, Federated Farmers West Coast Dairy Chairperson.

“The fact the world produced seven billion litres of milk for export in the first half of 2014 isn’t a secret and hasn’t happened overnight, so this further revision is disappointing. . . .

TNZ and NZ Winegrowers sign MOU:

Tourism New Zealand and New Zealand Winegrowers have today announced a Memorandum of Understanding (MOU) to jointly promote New Zealand as a visitor destination and premium wine producer internationally.

The two-year MOU will see the organisations formalise their activity to enhance both brands, ultimately driving more visitors to New Zealand and increasing the sales of New Zealand wine in key markets.

The MOU was jointly signed by Tourism New Zealand Chief Executive Kevin Bowler and Phillip Gregan Chief Executive Officer for New Zealand Winegrowers, at the wine organisation’s annual conference in Blenheim.

Tourism New Zealand Chief Executive Kevin Bowler says that the MOU will see both parties work together to leverage and enhance each other’s international profiles. . .

 

Possum-fur yarn makes double debut at NZ Fashion Week

Wellington yarn maker, Woolyarns New Zealand were rapt to find out this week two designers, Zambesi and Maree MacLean, are featuring their luxury possum fur product, Perino in collections for New Zealand Fashion Week 2014.

Up until now the luxury yarn has been used exclusively in the tourist market. Woolyarns NZ Marketing manager Jimad Khan says the move into high fashion is an exciting development for the company.

Both Zambesi and Maree MacLean are using the top-end yarn as features in their New Zealand Fashion Week collections.

“Zambesi is very keen to source local, sustainable product and on being approached by Woolyarns New Zealand got excited by the idea of possum yarn,” says Zambesi designer Dayne Johnston. . . .

Spark brings high speed mobile broadband to rural New Zealand:

Spark New Zealand announced today that it has begun its rollout of 4G services on the recently acquired 700MHz spectrum in the Waikato, enabling 12 sites with 4G in the region.

Following a successful trial earlier this year Spark, in conjunction with Huawei Technologies has now livened up sites with 4G in Te Aroha, central Hamilton, Morrinsville, Mystery Creek and other surrounding areas in the Waikato – allowing customers to access high speed mobile broadband over the 700 MHz spectrum.

Spark Networks Chief Operating Officer, David Havercroft, said: “Today marks the start of an accelerated rollout of 4G services to regional New Zealand. Over the next few months we’ll continue to widen our 4G footprint in the Waikato region, including the Coromandel, and will bring this technology to existing sites by February 2015. . .

Finally, a cloud based solution even the number crunchers can get excited about:

Xerocon Australia 2014 proved to be the perfect launch pad for iAgri, the agri-add on partner for Xero’s farm accountancy solution.

With more than 1,300 delegates cramming into the Dome in Sydney to hear the latest news from Xero and check out the latest add-ons and services from 82 exhibitors, the Canterbury based farm software company was one of the real winners.

iAgri CEO John Lay says there was a huge degree of interest in the product. “Farming is as important in Australia as it is in New Zealand so we fielded a lot of enquiry. Plainly, a lot of the accountants and bankers, many of whom had travelled from all over Australia specifically to view the iAgri add-on, have been waiting for a comprehensive solution like this to take to their clients and they were super excited – about as excited as an accountant can get anyway.”  . . .

 


Rural round-up

July 31, 2014

Vet helps sheep death probe – Rebecca Ryan:

Oamaru police want some ”definitive answers” on the cause of death of about 215 sheep in Ngapara, and will get a second opinion from a forensic vet.

Last month, about 195 sheep were killed on Peter and Janine Stackhouse’s farm, and about 20 sheep were found dead on Wendy and John Dodd’s property, about 1.5km away, the following weekend. . .

Changes to East Coast erosion grant scheme:

Associate Primary Industries Minister Jo Goodhew has announced changes to the funding programme supporting East Coast landowners with erosion issues.

“The Gisborne region has a severe erosion problem. A quarter of the land is susceptible to severe erosion, compared with only eight per cent of all land in New Zealand,” says Mrs Goodhew.

“Since 1992 landowners have been able to use the funding programme to help treat soil erosion, but 60,000 hectares of eligible land remains prone to erosion across the region. It is clear landowners need a more user friendly funding programme to help them tackle this issue.”

The programme has undergone a transformation as a result of two reviews by the Ministry for Primary Industries (MPI) in 2011 and 2012, and consultation held earlier this year. . .

 

Director election for DairyNZ:

Nominations will open next month for a new farmer-elected director for DairyNZ’s board following the resignation of current board member Barbara Kuriger.

DairyNZ board chairman John Luxton says Mrs Kuriger, who is from Taranaki, is standing down from the board to dedicate herself to her new role as the National Party candidate for the Taranaki-King Country electorate in the September General Election.

“Barbara has served on dairy industry boards for 11 years and has made a significant contribution through her links with the Dairy Women’s Network. She was the first person to win the Dairy Woman of the Year title in 2012 and was a founding member of DairyNZ’s board when it was formed in 2007. She has been a passionate advocate for driving improvements in our industry’s training systems. She has also worked hard to increase understanding between urban and rural communities. . . .

Dairying’s legal footprint continues to improve:

Federated Farmers is happy to see the legal footprint of New Zealand’s dairy industry continue to improve based on figures obtained by The Dominion Post.

“We are very happy to see prosecutions heading in the right direction,” says Dr William Rolleston, Federated Farmers President.

“While 21 prosecutions is 21 too many, we need to remember that there are some 12,000 dairy herds in New Zealand. In pure percentage terms it is 0.175 percent of all herds.
“It affirms our view that there is a genuine change of culture in farming. A decade ago the main topic would be stocking rates but today it is dominated by environmental factors.

“When you’ve got weather beaten dairy farmers in their late 50’s comparing notes on riparian plantings and ground sensors, you know there’s a cultural change afoot. . .

Fonterra and Abbott working together in China - Keith Woodford:

Fonterra’s recent announcement that it will partner with the multinational Abbott in the development of its next hub of China dairy farms is significant on two counts. It affirms Fonterra’s previously announced intentions to press ahead with further farm hubs in China now that the second hub in Shanxi Province is under way. That means that Fonterra retains its confidence about long term prospects in China. The announcement also means that Fonterra has found a top notch partner for some of its China operations.

Fonterra is already a supplier to Abbott of base powder ingredients for its Asian infant formula factories, but the new co-investment in China heralds a much closer relationship. On the surface it looks like an ideal match.

Fonterra’s expertise lies in producing high quality milk and in the first stage processing thereof. Abbott’s expertise lies in value-added nutritional products and marketing these to health conscious consumers.  . .

New model predicts pasture response to nitrogen:

A new model that can more accurately predict pasture responses to nitrogen is now available for farmers throughout the country.

The model is the first product resulting from farm nutrient co-operative Ballance Agri-Nutrient’s $19.5 million, seven year Clearview Innovations Primary Growth Partnership programme, jointly funded by the Ministry for Primary Industries.

Backed by sound science and extensive research, N-Guru™ is decision support software, designed in partnership with AgResearch, to improve the efficiency of nitrogen use on New Zealand pastoral farms. . .

Future of horticulture industry looks bright as national vege champion prepares for Young Grower of the Year 2014 final:

One of New Zealand’s top young vegetable growing talents will go head-to-head next month for the title of Young Grower of the Year 2014.

Brett Parker, from Pukekohe, beat six other young vegetable growers from across the country to be crowned the Young Vegetable Grower 2014 in April.

Brett will be looking to impress judges as he goes up against three regional Young Fruit Grower finalists for the national title in the final, run by Horticulture New Zealand in Christchurch on 14 August. The three young fruit growers, from the Nelson, Hawke’s Bay and Bay of Plenty regions will also compete for the Young Fruit Grower of the Year 2014 title, at the same time. . .


Rural round-up

July 27, 2014

Changes likely in lakes camping – David Bruce:

Thousands of campers who pour in to Waitaki lakes camp sites during summer face some major changes in management by the Waitaki District Council.

Most of the camps could be handed over to private operators under leases or contracts, but before any final decisions are made, people will be asked what they want.

That is likely to be contentious. Similar proposals in the past have caused consternation among some campers.

But they could also look at the Mackenzie District Council’s Haldon Arm Camp, which is administered by the Haldon Arm Reserve Trust Board, made up of campers. . .

Water deal celebrated – Sally Brooker:

Compromise and co-operation are being hailed as the main ingredients in a South Canterbury agreement on nitrogen limits.

Farmers in the Lower Waitaki-South Coastal Canterbury catchment had asked their Environment Canterbury zone committee for more time to work on allocating nitrogen emissions, within the maximum already set to meet the goals of a healthy environment and vibrant economy.

Since February, the farmers have held more than 10 meetings, with ECan supplying technical advisers. After fearing they would not agree, they eventually did.” . . .

Asian markets driving growth for NZ food & beverage exports:

Consumer demand in East and South East Asia for high value foods and beverages is driving export growth and diversification, a new Government report shows.

‘What does Asia Want for Dinner? Emerging Market Opportunities for New Zealand food & beverages in East & South East Asia’ was released today by Economic Development Minister Steven Joyce and Primary Industries Minister Nathan Guy.

The report finds that New Zealand’s overall food and beverage export performance to Asia is excellent; performing strongly in dairy, as well as in meat, seafood, produce and processed foods.

“Asia is the fastest growing food market in the world and is increasingly important for New Zealand exports”, Mr Joyce says. . .

Māori agribusiness showcased to international delegation:

New Zealand’s Māori agribusiness programmes are on show this week, as delegates from Asia-Pacific Economic Cooperation (APEC) economies visit New Zealand to address common barriers to rural economic development. Through case studies and on-farm visits, the Ministry for Primary Industries (MPI) will share experiences learned while helping to build the capability of New Zealand’s rural economic development.

The visiting delegates from Peru, Indonesia, Japan, China, Chinese Taipei, Thailand, Vietnam and the Philippines will attend a two-day APEC PPFS Rural Development workshop from 22-24 July 2014, hosted by MPI and the Northland Māori agribusiness partners.

“Food security is a common APEC challenge with increasing demands and a need to focus on sustainable productivity,” says MPI’s Deputy Director-General Ben Dalton. . .

Don’t write of dairying MyFarm says:

People should not be in any hurry to write off dairy farming just because prices have taken a dive, MyFarm executive director Andrew Watters says.

The average whole milk powder price in the Fonterra GlobalDairyTrade auctions has fallen by 38 percent since February.

Dairy farmers and economists say with the recent sharp drop in prices, it is inevitable Fonterra’s $7 per kilogram of milksolids price forecast will come down – one predicted as low as $6.

But Mr Watters said predictions of the end of the good times in the dairy industry were premature.

He pointed out that Fonterra only sold only about a third of its product at the auction, and that volumes at recent auctions had been low.

The positive, longer-term outlook for dairy farming had not changed, he said. . .

Grow Movie – A Great Documentary Which Outlines Young Urbanites Turning To Farming - Milking on the Moove:

I watched the Grow Movie the other night. 

It’s a documentary that tells the story of how young urban people are being attracted to farming.

The movie follows a few young farmers in the US state of Georgia. We learn how they found themselves farming & why they love it.

Most of the people were highly educated with degrees in finance, engineering & soil science etc, but they have chosen the small scale rural lifestyle. . .

MPI introduces new biosecurity sniffers

Two young biosecurity sniffers were introduced to the world today, along with a new type of detector dog and a new home for the Ministry for Primary Industries’ (MPI) Auckland-based canine team.

Beagle puppies Darcie (girl) and Darwin (boy), collectively known as D-litter, were born by caesarean in May to working detector dog Zuma under the MPI detector dog breeding programme.

Steve Gilbert, MPI Director Border Clearance Services says the MPI breeding programme “provides a cost-effective way of producing fit-for-purpose biosecurity detector dogs”.

The programme has produced 27 litters since 1996 and nearly 80 percent of the individual puppies have become successful biosecurity detector dogs. . .

Brits buy record amount of NZ wine:

New Zealand premium wine sales soar in the UK market

New Zealand wine has become the number 2 country of origin in the UK market for wine sold over £7 according to the latest Nielsen data (MAT 21-6-14). New Zealand now sells 18% of all wines sold in this premium price segment, having overtaken Australia and now sits behind France.

The latest statistics also show New Zealand’s average price per bottle has increased to £7.34 from £6.79 – an 8.1% increase (Nielsen MAT 21-6-14). . . . .

 New Zealand Kiwifruit Growers Welcome Boost to Horticulture Industry:

New Zealand Kiwifruit Growers Incorporated (NZKGI) has welcomed the Government’s plans to get more Kiwis into seasonal work, and its decision to increase the annual Recognised Seasonal Employer (RSE) cap to a total of 9000 workers.

NZKGI President, Neil Trebilco, says this boost to seasonal workers is essential in delivering the industry’s forecasted future growth.

“The kiwifruit industry is recovering quickly from Psa and is poised for big future growth. Over the next few years we are going to see a significant increase in Gold3 volume. . . .


Rural round-up

July 23, 2014

Farming family demonstrate conservation message – Ann Warnock:

Dan Steele is a farmer, conservationist, competitive axeman, hunter, historian, lodge host, rugby fan and romantic who never dreamed he’d turn into a bird geek.

But at the age of 21, while wandering up the banks of the Kaiwhakauka Stream at Retaruke Station, his parents’ remote property on the Whanganui River, he spied a family of blue ducks (whio) and they unwittingly shaped the rest of his life.

“I love exploring and poking about up every stream; climbing every ridge. On this particular day I saw two adults with their five ducklings. The next time I saw them there were only three ducklings. Then there were none. I phoned the DOC ranger. They were endangered. It hit me; protecting the blue duck was part of the future of our land.” . . .

Boost for horticulture and viticulture industry:

Social Development Minister Paula Bennett and Immigration Minister Michael Woodhouse have announced plans for a new programme aimed at getting more Kiwis into seasonal work, alongside an increase to the annual RSE cap.

Mr Woodhouse says the need to raise the cap on Recognised Seasonal Employer (RSE) workers from 8000 to 9000 demonstrates the success of the RSE scheme.

“There’s no doubt that the growth in the horticulture and viticulture industry in the past few years would not have been possible without RSE, which has been widely praised locally and internationally,” says Mr Woodhouse.

“It has provided employers with a stable and reliable workforce and given them confidence to expand and invest in their business. RSE workers have also benefitted significantly from gaining invaluable work experience and being able to send money back to their communities at home.’’ . . .

NZ Pacific encouraged for new Seasonal Worker Scheme:

Domestic Pacific workers can be as successful as overseas Pacific workers in the horticulture and viticulture industries says Pacific Island Affairs Minister Peseta Sam Lotu-Iiga.
 
Mr Lotu-Iiga is encouraging employers to take up the New Zealand Seasonal Worker Scheme announced today by Social Development Minister Paula Bennett. The scheme will provide pastoral care and other support to assist Kiwis into seasonal work. Mrs Bennett also announced an increase to the Recognised Seasonal Employer (RSE) scheme. The scheme recruits seasonal workers from overseas to assist in the horticulture and viticulture industries where there are not enough New Zealand workers.
 
“I was in Marlborough in the weekend speaking to employers, Pacific RSE workers and domestic Pacific workers and I saw first-hand the benefits of Pacific people working in the wine industry,” says Mr Lotu-Iiga. . .

Pork industry joins GIA biosecurity agreement:

The Government and the commercial pork industry have committed to a partnership to strengthen biosecurity, Primary Industries Minister Nathan Guy has announced today.

The Deed of the Government Industry Agreement (GIA) on Biosecurity Readiness and Response was signed by New Zealand Pork at its annual conference today.

“This enables New Zealand Pork and the Ministry for Primary Industries (MPI) to make joint decisions on biosecurity readiness and response activities. It means we can focus on the areas of greatest priority to the pork industry,” Mr Guy says.

“What it means in practice is a stronger, more effective biosecurity system. Those with a direct stake in biosecurity can now be directly involved in decision making and funding. . .

– Keith Woodford:

Last week I wrote about PGG Wrightson and the challenges it faces. For their seeds division there are clear strategic options, but for the farm services division, the long term strategy remains challenging. Part of the reason is the competition they are facing from the farm services co-operatives, with Farmlands now dominant in the sector.

Farmlands has 56,000 members and an annual turnover exceeding $2 billion. This is more than double the New Zealand farm services revenue of its major investor-owned competitor, PGG Wrightson. The aim of Farmlands is to keep prices low for its members. This ensures that its investor-oriented competitor also has to keep its margins low. . . .

The truth about grassfed beef – The Food Revolution Network:

A lot of people today, horrified by how animals are treated in factory farms and feedlots, and wanting to lower their ecological footprint, are looking for healthier alternatives. As a result, there is a decided trend toward pasture-raised animals. One former vegetarian, San Francisco Chronicle columnist Mark Morford, says he now eats meat, but only “grassfed and organic and sustainable as possible, reverentially and deeply gratefully, and in small amounts.”

Sales of grassfed and organic beef are rising rapidly. Ten years ago, there were only about 50 grassfed cattle operations left in the U.S. Now there are thousands.

How much difference does it make? Is grassfed really better? If so, in what ways, and how much? . . .

New Zealand Meat Exports October 2013 to June 2014:

Beef + Lamb New Zealand (B+LNZ) compiles lamb, mutton and beef export statistics for the country. The following is a summary of the combined export statistics for the first nine months of the 2013-14 meat export season (1 October 2013 to 30 June 2014).

[All monetary values are in New Zealand dollars.]

Summary

Despite the high New Zealand dollar, particularly during the main export months of January to June, there was an increase in the average value for lamb, mutton and beef/veal. A smaller national lamb crop flowed through to reduced lamb export volumes. However, for only the fourth time in history, lamb exports exceeded $2 billion Free On Board (FOB) in the first nine months of a season.  . . .

New veterinary resource to manage disease in cattle associated with Theileria:

A new veterinary handbook on Theileria, developed by the Theileria Working Group and published by the Ministry for Primary Industries (MPI) and the New Zealand Veterinary Association (NZVA), will help to ensure that veterinarians and their farmer clients are well prepared to manage the expected spring upsurge in infections with this important, new parasite of cattle.

The number of affected farms is expected to exceed those reported in the last two years with nearly 700 beef and dairy herds testing positive so far, with about a third of these occurring in the North Island this year.  . .

 Brown Re-Elected as Council Chairman for Third Term, Duncan Coull New Deputy Chair:

Fonterra Shareholders’ Council Chairman, Ian Brown has today been re-elected unopposed to the position for a third term.

Ian Brown: “I appreciate the support I continue to receive from Councillors and look forward to leading the Council for a further 12 months.”

Mr Brown is joined by first time Deputy Chair, Duncan Coull, also elected unopposed, who will take up his new role on 29 July for a 12 month term.
Mr Coull was elected to the Council in 2010 to represent Fonterra Farmers in Otorohanga and serves as the Chair of the Council’s Representation Committee. . . .


Share your story

July 15, 2014

Rural Women New Zealand is inviting people to get creative by writing short stories and taking photos and videos to showcase New Zealand farming life today.

“We are running the competition in conjunction with the Ministry for Primary Industries (MPI) to tell the stories behind the primary products we grow on our farms,” says Rural Women national president, Wendy McGowan.

MPI will use some of the photos, videos and stories to promote the New Zealand primary industry brand and our rural values.

“We encourage people to get their creative juices flowing to share the challenges and triumphs of farming and today’s sustainable business practices,” says Wendy McGowan.

“We hope to see entries that reflect our care of the land and our animals, and the skills and ingenuity of the people that make New Zealand’s primary industries so successful.

Rural Women NZ also hopes the competition will highlight the opportunities for great careers that are available in the sector.

The competition is being run as part of Rural Women NZ’s celebrations to mark the 2014 International Year of Family Farming.

“Stories are powerful, and we have some great farming stories to tell,” says Wendy McGowan.
There are five entry categories: Women and men at work on the farm; farm machinery and farm innovation; animals; children; rural communities. Entries close 1 November 2014 and the competition is open to everyone.

More details and an entry from can be found here.

 


Rural round-up

July 15, 2014

Medium scale adverse event declared in Northland:

Primary Industries Minister Nathan Guy has declared a medium-scale adverse event for the primary sector in storm-hit Northland.

“This will provide the overarching framework for any Government support as assessments continue to be made.

“The first stage of this is to provide funding for Northland Rural Support Trust (NRST) to deliver help, support, and management advice to farmers and growers. The Trust have been working closely with MPI and local authorities to determine what’s required in the clean-up phase after severe flooding and wind damage.

“The storm has impacted around 80% of the primary sector in Northland with very high winds and heavy rainfall over a solid four day period. I’ve seen for myself the damage today at an avocado orchard severely damaged by wind and dairy farms near Whangarei under water. . .

Grower quits after $100,000 avo thefts – Kristin Edge:

Northland avocado growers are being warned to be on high alert for fruit thieves with one Whangarei grower estimating $100,000 worth of fruit has been stolen over the past five years.

The Whangarei grower, who did not want to be identified because she feared for her safety, said her orchard had been continually targeted by thieves and she was selling up due to the financial losses and emotional stress.

The latest theft comes only days after an industry-wide warning was issued to growers to be extra vigilant to protect the new season’s crop. . .

Farmers focus on debt – Jeremy Tauri:

We spend a lot of time worrying about the residential property market, if prices are out of control and how young people will get their first homes.

But although we have focused on the price of a house and section in the suburbs, many people have ignored what’s been happening out of town.

The rural sector is the biggest driver of this country’s economy and in the regions we feel the impact of farmers’ fortunes even more acutely. But although we’ve been bemoaning that, nationwide, house prices have increased two-and-a-half times since 2000, rural land prices have trebled. Real Estate Institute statistics show the median price a hectare for farms sold in the three months to May 2014 was $25,017. . . .

Shepherd makes tracks to France - Sally Rae:

Come September it will be ”au revoir Waihaorunga” and ”bonjour France” for young South Canterbury shepherd Alex Reekers.

Mr Reekers (23), a member of the Glenavy Young Farmers Club, and Mitchel Hoare (19), of Te Kuiti Young Farmers Club, will represent New Zealand at the final of the World Young Shepherds Challenge in Auvergne, France, in September.

The pair earned the top scores in the preliminary round of the challenge, held alongside the ANZ Young Farmer Contest grand final at Lincoln. . . .

Trust works more at top of the cliff – Sally Rae:

The Otago Rural Support Trust’s emphasis is changing.

Traditionally, the work of the trust had been ”the ambulance at the bottom of the cliff”, mostly during adverse weather events like floods, snow storms and droughts.

But increasingly, the trust was ”doing more work at the top of the cliff”, assisting rural families who were under stress, chairman Gavan Herlihy, of Wanaka, said. . . .

New agri-chemicals safety campaign:

A new rural safety campaign is underway, and this one aims to encourage farmers and growers to wear the right safety gear when using agricultural chemicals.

The Environmental Protection Authority (EPA) has teamed up with agri-chemical industry body Agcarm and WorkSafe New Zealand for the campaign. Rural retailers are also participating by displaying posters and other information in more than 260 stores.

EPA chief executive Rob Forlong said the main point was to eliminate the “she’ll be right” attitude towards farm chemical and safety gear. . .


Dairy cash cow for regions

July 15, 2014

Dairying is a cash cow for the regions:

New Zealand’s regional economies are milking the dairy industry, taking $14.3 billion in total in 2013-14 – a 31 percent increase in earnings – DairyNZ figures show.

The regions earned about $14.3 billion from dairy farms in 2013-2014, taking the lion’s share of national dairy earnings. In total, it’s estimated the New Zealand economy earned $17.6 billion from dairy exports that year.

DairyNZ’s chief executive Tim Mackle says its recent Economic Survey shows the industry contributed about 31 percent more than the previous year and injected much of that back into growth, farm spending and jobs.

“Our latest survey shows the financial value that dairy farmers bring into each province, helping grow residents’ wealth even if they are not dairy farming themselves,” Dr Mackle says.

Dairy’s boost to rural economies is consistent with the national trend. National dairy export revenue soared by 30 percent to 17.6 billion in 2013-14, a Situation and Outlook 2014 report from the Ministry for Primary Industries (MPI) says.

New Zealand’s dairy export revenue is expected to rise in the future, reaching $18.4 billion by the year ending 30 June 2018, based on a modest rise in domestic production, increasing international dairy prices, and a depreciating NZD, the MPI report says.

DairyNZ’s 2013-14 estimations shows New Zealand’s top provincial performer in dairying is Waikato, retaining its top spot from the previous year and earning $3.8 billion, followed by Canterbury with $2.77 billion, Southland with $1.72 billion then Taranaki with $1.44 billion.

Opposition parties say they’re keen for the regions to do better but they’re also against dairying which is a cash cow for the regions.

The benefits aren’t just financial, they’re social too – providing jobs on farms and in the businesses which service and supply them with the population boost that brings.

The other leg of the sustainability stool is the environment but most of the criticism of dairying is based on past practices.

Dairy companies and regional councils require high environmental standards and most farmers are complying with them.

There is still more to do but problems which built up over time aren’t solved overnight.

The left’s anti-dairying policies wouldn’t necessarily do much to help the environment, they would harm the economy and the whole country would lose from that.


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