Dairy cash cow for regions

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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