Vernon Small asks in The Independent (not on line) why politicians and many commentators can’t find much to cheer about in the success of the diary industry.
What do they want? Dairy products to be dirt cheap and not in demand? And if we don’t want cheese, butter and milk to be expensive – some of our most important exports – just what do we want?
As a partner in a dairy farm I am biased but my appreciation of higher dairy prices isn’t entirely selfish because we all benefit from increased export earnings.
Would it be better if all those overseas consumers paid less for dairy – and other foodstuffs we export that are no riding high – so we could pay less too?
Definitely not. The trouble is that most of those who voice concern see the cost of dairy produce as the problem instead of looking at why New Zealanders aren’t earning more which would make food, and everything else, more affordable.
It is our white and yellow gold being sent out into a market where growing middle classes are fuelling demand and where it is not facing a European Union butter mountain overshadowing prices. Certainly these are basic foodstuffs …and consumers are hurting. So you would expect politicians to reach inside their ideological toolboxes for tax cuts, income assistance or regulation.
But some lose sight of the overall good to the economy behind a welter of concerns about the inflationary impact of dairy prices and the way consumers are being milked. …The overall impact on New Zealand Inc from high dairy prices must be stronger growth, a boost to productivity, safer jobs and stronger consumer demand – although the environmental impact acts as a counterweight.
There is nothing wrong with high returns on exports. The problem is what’s driving record numbers of New Zealanders overseas – relatively low wages and high taxes.
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Homepaddock 