The social licence to operate
OPINION: In the 2023 election, 77.5% of the 3.69 million people eligible to vote took the privilege of making their wishes known about the governance of New Zealand.
SOCIAL MEDIA have thrust farmers into customers’ and consumers’ spotlights, revealing how food is produced and the resources used to produce it.
DairyNZ chief executive Tim Mackle says the public are taking a greater interest in what’s happening on farms, bringing farmers new challenges.
“We certainly have a job to educate the public about what the practical realities are of food production. There’s work we have to do and it’s no different from a lot of other industries. We know we have an urban population in New Zealand and so we have to work hard at making sure they understand what we do.”
Mackle says a big risk of social media is things being taken out of context, misrepresented and often picked up by key overseas customers. “We must ensure we are farming using good practices and all following good standards that we agree on. But we also need some strategies we agree on to counter misrepresented stories.”
Mackle warns farmers they “might have to do more environmentally than is in their milk supply contracts”. For example, water is a big issue and over the last five years the awareness of water quality issues by farmers has increased dramatically.
“For some more than others, but the awareness at least of farmers is certainly there now. As an industry we are relative newbies to the whole sustainability agenda so we have been playing catch-up for a while. But we are getting ourselves well organised now and farmers are getting into things they need to be doing and we are trying to work through what has to be done.”
Mackle says the new water accord sets out base level across the country, and what is regarded as good practice. Catchments in some regions will require more attention and work by farmers who must band together and see how collectively they can improve. Mackle points to efforts of farmers in the Lake Rotorua catchment as an example.
The solution lies in a “community approach being taken whereby farmers can be a part of the solution. So long as they are making a profit they are happy to chip in and help,” he says.
Questions are being raised about just how good the state of the dairy industry is - especially given that the average farmgate payout for the coming season is set to exceed $10/kgMS.
A leading financial and banking advisor says he doubts if most dairy farmers fully understand the dynamics of banking.
Dairy farmers are shoring up their balance sheets, with almost $1.7 billion of debt repaid in the six months to March 2025.
Virtual fencing company Halter is going global but for founder Craig Piggott, New Zealand farmers will always remain their main partners.
A former Fonterra executive is the new chair of the Dairy Companies Association of New Zealand (DCANZ).
New Federated Farmers national dairy chair Karl Dean is looking forward to tackling the issues facing the sector.
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