Subsidies shape silly responses

The ag-sag of the 80s was tough, but let’s not forget the silly subsidies that led to it.

Sheep numbers peaked at  70 million in 1982 which was around 22 sheep for every person.

We’re down to only six sheep each now, but farmers have replaced quantity with quality.

The total number of sheep was down by just over 5 percent between June 2015 and June 2016, Statistics New Zealand said today. Provisional figures show that the number of sheep in New Zealand fell by 1.5 million, down to 27.6 million at 30 June 2016.

“Between 2006 and 2016 the number of sheep reduced from just over 40 million, a drop of around 30 percent,” agricultural production statistics manager Stuart Pitts said. . . 

Improvements in breeding and feeding are producing better stock and the amount of meat we’re selling is stable in spite of the fall in sheep numbers.

Returns from sheep meat continue to disappoint but the answer isn’t subsidies.

As the video shows, expensive subsidies shaped silly responses. Farmers went for quantity rather than quality and produced meat for which there was no market.

The video is one of a series of  short videos, Trailblazers: The New Zealand Story from Free to Choose Media.

The others are:

Main preview

Public Sector Reforms

Empowering Ordinary People

Fishing Reforms and Sustainability

Hat tip: Utopia

 

 

 

 

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