Consumers pay price for protecting producers

The Canadian commitment to dairy farmers to continue protection is putting the interests of the minority ahead of those of the majority.

It’s consumers who pay the price of tariffs on dairy products of up to 300% . The cost isn’t only a monetary one, they also pay the price of fewer choices.

Most New Zealand farmers resisted being dragged into the real world but now, nearly three decades on, it would be difficult to find any who would want to go back to subsidies and tariffs.

The process of losing subsidies was painful but the result is worth it.

Forcing us to meet the market has made us much better at what we do. We think about, and act on, what people want to buy rather than what the government is going to pay us to produce. Consumers here and overseas have benefitted from that.

The only fair trade is free trade apropos of which Anti-Dismal shows how it started.

4 Responses to Consumers pay price for protecting producers

  1. Scotty says:

    Its not like NZ consumers have to subsidise farmers here is it?
    ETS, Irrigation, pollution clean ups. Foregoing commercial returns on high country leases.
    But thats different eh.

  2. homepaddock says:

    Scotty – protection is the imposition of tariffs or other measures which keep prices artificially high, there is none of that on farm produce here.

    The new law on pastoral leases bases rents on commercial returns.

  3. Scotty says:

    How about we open up pastoral leases to the free market, to test your assertion.
    Farmers outgoings are being subsidised by tax payers,which surely has the same result as placing tariffs on incoming products.

  4. homepaddock says:

    What do you mean? The properties can be bought and sold on the free market but the state owns only the land exclusive of improvements and that’s what rents cover. There’s no subsidy.

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