Tuesday, 13 December 2022 11:55

Dairy companies unhappy with Govt's HWEN stance

Written by  Peter Burke
DCANZ executive director Kimberly Crewther. DCANZ executive director Kimberly Crewther.

New Zealand dairy companies say they are very disappointed at the Government's response to the He Waka Eke Noa partnership proposal.

Dairy Companies Association of NZ (DCANZ) executive director Kimberly Crewther told that industry had worked really hard to come to a consensus position which took into account a broad range of considerations.

This, she says, included taking advantage of the opportunities that exist in NZ and managing the risk of undue economic impact on our rural communities, especially if that involves cuts in production in NZ.

"The Government's proposal is fundamentally different to what HWEN put forward and it raised some concerns for us that the changes made were leaning towards a system that achieved a reduction by cutting production. In our view that holds a very strong risk of emission leakage being counterproductive to the global emissions reduction outcomes that we are trying to contribute to," she says.

Crewther says the DCANZ submission is seeking changes to that and is also seeking to highlight where their analysis has weakness in it. That includes the way they have modelled emissions leakage. She says the data set the Government used in its modelling has produced a grossly inaccurate result for the dairy industry.

In its submission, DCANZ says rather than achieving emissions reductions by cutting agricultural production, which is what the Government is proposing, a better approach would be to incentivise the uptake of new tools and practices that reduce emissions. They say such a move would maintain the positive contribution of NZ dairy to global food systems.

DCANZ wants the Government to fully commit to a farm-level system from the outset through the removal of the processor-level backstop. It supports an integrated, whole-farm-system approach to managing agricultural emissions by pricing nitrous oxide from fertiliser at the farm level.

It also wants certainty for farmers as they transition into a pricing system by capping levy prices for the first five years and ensuring they are set at the minimal level required to fund incentives, sequestration, research & development, and administration.

Another issue raised by DCANZ in its submission is ensuring industry confidence in the system through the establishment of a System Oversight Group, with industry expertise to give Ministers advice on levy price setting and levy revenue recycling, rather than leaving the decision to just a Minister.

It calls for government to support farmers' positive engagement in actively managing emissions and offsets within their farm systems by recognising all scientifically valid sequestration alongside pricing of emissions from the start, as proposed by HWEN.

Crewther says DCANZ believes there needs to be changes that go back to the points made in the May HWEN proposals. She says there needs to be systems where the prices are working to incentivise emissions reductions through the uptake of technologies and other opportunities, rather than reducing emissions by driving production cuts.

More like this

Editorial: O Canada

OPINION: The Canadian government's love affair with its lifestyle dairy farmers has got it into trouble once again.

DairyNZ chair wants cross-party deal

New DairyNZ chair Tracy Brown says bipartisan agreement among political parties on emissions pricing and freshwater regulations would greatly help farmers.

Dairy a big winner in Gulf Trade deal

The dairy industry will be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council whose members include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

Featured

Velvetleaf a real risk to crops

Any farmer that harvests or buys crops risks inviting one of the world's most invasive pest plants onto their property - to their detriment.

Corn makes Christmas hit

Gisborne's record hot dry summer weather has produced rewards for one of the country's largest commercial growers based in the region - Leaderbrand.

Apricot brand makes a summer splash

Apricots from New Zealand’s largest Summer series exporter, Ardgour Valley Orchards, burst onto the world stage and domestic supermarket shelves under the Temptation Valley brand last month.

National

Synlait sweetens milk supply deal

Canterbury milk processor Synlait is confident of retaining its farmer supplier base following a turnaround in its financial performance.

Optimism in the air

Ag First chief executive James Allen says dairy farmer optimism is on the rise.

Machinery & Products

New distributor for Aussie equipment

Australian agricultural equipment distributor, Waringa Distribution, has increased its support to South Island farmers and contractors with the appointment of…

» Latest Print Issues Online

Milking It

Bovaer's fate

OPINION: The fate of methane inhibitor Bovaer in NZ farming is still up in the air.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter