DairyNZ: Strong payouts offset high farm costs
The dairy sector is in a relatively stable position, with strong milk price payout forecasts continuing to offset ongoing high farm costs, according to DairyNZ.
The industry organisation’s chair, Jim van der Poel, says the Government’s emissions pricing proposal threatens the viability of farming businesses and rural communities, and is not acceptable to farmers.
“DairyNZ is committed to securing a fair pricing system for farmers and we would like to see the Government revert to the He Waka Eke Noa recommendations put forward in May,” he says.
“The Government’s suggestion it has given the sector what we asked for – with ‘small tweaks’ – is incorrect. The changes are significant and cut to the very core of the He Waka Eke Noa partnership.
“Changes to the way price will be set and limiting the recognition farmers can get for planting has thrown the proposal off-kilter. We want an enduring system and that means we need to get back to a place that works for everyone,” Van der Poel says.
He isn’t alone in his opposition to the emissions pricing plan.
Since the plan was announced last month, politicians, industry leaders and farmers alike have voiced their opposition to the plan, with a nationwide protest held on 20 October.
Public support seems to have been weak, with one Curia poll commissioned by Federated Farmers showing that 57% of Kiwis are opposed to it.
Van der Poel says farmers are worried the policy will have significant implications for them, their businesses, and communities.
“It makes no sense to penalise Kiwi farmers, only to see an increase in global emissions,” he says.
“We must reduce our emissions, but we can't drive blindly toward targets at all costs. We have to remember why we're doing this in the first place. The Paris Agreement is about reducing global emissions, not just New Zealand's.”
The consultation on the pricing proposal ends on 18 November.
