Rural round-up

08/08/2015

Removal of subsidies and tariffs to boost NZ farm incomes – econfix: (Hat tip: Utopia)

With most of the attention has been focused on the TPP the 161 countries of the World Trade Organisation had set a deadline of the end of July to agree on a “work programme” to substantially complete the Doha round of global trade talks later this year.

Launched in 2001, the Doha round was to pick up where the Uruguay round of global trade liberalisation left off six years earlier. The deadlock in negotiations is ultimately down to a belief that the EU and the US and the large developing countries of China, Brazil and India have each given up more than its fair share in liberalising agricultural trade and the other side should do more. . .

Canterbury dairy farms facing big bills as milk payout crashes:

South Canterbury farmer Ben Jaunay is “farming for free” and facing losing hundreds of thousands of dollars if milk prices keep falling.

Banks are tipping dairy giant Fonterra’s payout for its latest financial year to go below $4 a kilogram. The value of whole milk powder dropped sharply at Fonterra’s global commodity auction this week, increasing fears for its payout forecast on Friday.

Jaunay manages more than 3000 cows on two properties near Timaru.  . .  

Collaboration Paying Off For New Zealand’s Avocado Industry:

Plans to quadruple sales of New Zealand avocados by 2023 is off to a roaring start with the industry almost hitting the half way mark last season with a record 7.1m trays worth $135m harvested during 2014-15 season.

Chief Executive of NZ Avocado, Jen Scoular, says the goal is to achieve $280m worth of sales by 2023 through a five year Primary Growth Partnership (PGP) programme with the Ministry for Primary Industries (MPI).

“Confidence is riding high, and the industry is on track to achieve the PGP objectives and significantly boost avocado sales and productivity in less than ten years,” says Scoular. . .

 Russian ‘food crematoria’ provoke outrage amid crisis:

Russian government plans for mass destruction of banned Western food imports have provoked outrage in a country where poverty rates are soaring and memories remainof famine during Soviet times.

Even some Kremlin allies are expressing shock at the idea of “food crematoria” while one Orthodox priest has denounced the campaign, which officially began on Thursday, as insane and sinful. However, the authorities are determined to press on with destroying illegal imports they consider “a security threat”. . .

Pipfruit industry continues to ripen:

The boom behind the apple industry’s growth in recent years is being put down to new export markets and varieties.

Apple exports were worth more than $530 million in 2014, and the industry has a goal to reach $1 billion by 2022.

Ministry for Primary Industries chief assurance strategy officer Bill Jolly told the pipfruit industry conference in Wellington the industry’s growth was finally looking rosy.

“For ten years, we sort of stuck around that $320-360m mark, and then suddenly we got a real jump in 2012, and you guys have been going great guns ever since. The growth in this industry has been absolutely spectacular.” . .

Big increase in rural broadband for Wellington region:

Communications Minister Amy Adams says nearly 10,500 homes, workplaces and schools in rural parts of Wellington now have access to faster, more reliable broadband.

The latest results for the Government’s Rural Broadband Initiative (RBI) as at 30 June 2015 were released today.

“By 2016, 90 per cent of New Zealand homes and businesses outside the Ultra-Fast Broadband phase one footprint will have access to better broadband,” Ms Adams says. . .

 

New certification scheme for dairy farm systems consultants:

A certification scheme designed to give farmers confidence in the quality and standard of the advice they receive from their dairy farm systems consultants was launched today at the New Zealand Institute for Primary Industries Management (NZIPIM) national conference in Ashburton.

Development of the scheme has involved a collaborative partnership between DairyNZ, leading dairy farm systems consultants, and NZIPIM, who will continue to be involved in developing and testing the scheme’s assessment tools and associated training to ensure the material is kept current and relevant to the profession. . .

 

 


But they did it first

23/05/2009

The USA is reintroducing export subsidies for dairy products in a tit for tat response to the EU which reintroduced subsidies earlier in the year.

But they did it first is no way to win an argument, but that’s the excuse they’re using.

US Agriculture Secretary Tom Vilsack says the move is in direct response to the European Union’s introduction earlier this year of export subsidies. It will allow American exporters to compete fairly, he says.

His idea of fair isn’t quite the same as mine.

At the same time, Mr Vilsack says the Obama administration remains strongly committed to a pledge at the recent G20 summit to refrain from protectionism.

He says every attempt will be made to minimise the impact on countries that do not subsidise their dairy producers.

If he wants to give up his day job he could find another writing ads for Tui.

Trade Minister Tim Groser isn’t impressed.

Dairy farmers the world over are under pressure, but this is a short-sighted response when the international dairy market has recently been showing signs of stabilising. The decision is a setback, and will be damaging to world markets.

“Export subsidy assistance will have a relatively small effect on income for US dairy farmers, and may even prove counterproductive by creating uncertainty and depressing international dairy market prices. Unsubsidised producers, like those from New Zealand, will bear the cost of these trade-distorting measures.

“I am disappointed that the United States should have followed the poor example set by the European Union when it reintroduced export subsidies in January.

“While the US and the EU may consider they are both acting within their current WTO commitments, this sends a very negative signal to other WTO members. . .

Groser says it’s not whether these measures are legal but the bad example the EU and USA are setting.

 “The long term solution is clear: we need to complete the WTO Doha Round in order to secure the elimination of agricultural export subsidies. In the meantime, restraint is needed, not a resumption of retaliatory subsidisation.

The recession will provide excuses for increased protectionism which will do little, if anything, to help producers, increase costs for taxpayers and consumers and hamper the eventual recovery.


USA backs out of FTA

08/03/2009

Remember the excitement which greeted the announcement that the USA was going to enter mulitlateral free trade negotiations with New Zealand?

Well, take the champagne out of the chiller, because TVNZ reports they’re back tracking .

The Obama administration has sought to indefinitely delay the so-called Trans Pacific Partnership talks due to get underway in Singapore later this month.

They were expected to strike a trade deal between the US, New Zealand, Chile, Singapore and Brunei.

The postponement is to give time for the US to select a new trade representative.

This is a serious blow not just to New Zealand’s hope for improved access to US markets but to all who’re working towards global free trade.

As Federated Farmers president Don Nicolson said when reacting to the anouncement the USA was going to join the Trans pacific Partnership:

“Moves to negotiate multilateral agreements with likeminded countries by the United States, sends a clear signal to the WTO to get Doha back on track. 

The indefinite delay shouldn’t derail the Doha negotiations but it could result in much slower progress.

UPDATE: goNZofreakpower asks if this means we can can  section 92A?


WTO talks fail again

30/07/2008

The latest Doha Round  of trade negotiations have failed which deals a blow to New Zealand’s hopes for better access to overseas markets.

Charles Finny of the Wellington Regional Chamber of Commerce said the deal on the table at the WTO wasn’t perfect but everyone would have been better off with it than without it.

“For New Zealand it offered the end of agricultural export subsidies, caps on domestic agricultural subsidies, and improved market access for agriculture, fisheries, forestry and manufactures. More work was needed on services but signs there were positive that some forward movement could be achieved also. It is therefore a tragedy that a small number of WTO members were trying to unpick elements of this package.”

The New Zealand International Business Forum also expressed its deep disappointment that the WTO meeting had failed to agree on a way forward for the Doha negotiations.

“Failure in Geneva is bad news for everyone” said NZIBF executive director Stephen Jacobi. “Bad for New Zealand because the opportunity to reduce tariffs and export subsidies once again eludes us.

“Bad for the developing world because they need improved access to developed country markets to promote growth and address poverty.

“And bad for the global economy that desperately needs the boost in confidence that conclusion of the Doha round would bring”, said Jacobi.

Everyone gains from free trade and the ones who lose the most from trade restrictions are those who can least afford it.


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