Thursday, 10 March 2016 11:55

Tractor-driving beneficiaries

Written by 
Andrew Hoggard says claims that New Zealand dairy farmers are subsidised are false. Andrew Hoggard says claims that New Zealand dairy farmers are subsidised are false.

Andrew Hoggard says claims that New Zealand dairy farmers are subsidised are false.

He says detractors of the dairy industry like to claim we are subsidised because of the negative externalities of our industry.

"To them I point out that in Europe those farmers get support payments for environmental issues whereas NZ farmers meet the full cost of those initiatives; the joint Federated Farmers – DairyNZ survey found that in the last decade NZ farmers had [spent about] $1 billion in environmental initiatives.

"People may also point to the irrigation fund as a subsidy. But when you have to pay it back it's called a loan not a subsidy."

Hoggard says he has seen plenty of other comments that NZ increased its production during the last decade, so why can't others?

"Yes, we increased our production but we did so based on the economic reality. The market, through increased prices, said it wanted more dairy, so we responded with increased production. Right now the market is saying the opposite, and at this stage we have responded and our production is down -- though with all this rain many of you... have received we may not be down by as much as predicted.

"If Europe wants to have a social welfare system for tractor driving beneficiaries that's its business but it becomes our business when that system has distorting and negative effects on world trade."

More like this

Featured

Editorial: A Poor Policy

OPINION: At a time when farmers are advocating for less government spending and no new taxes, the dairy sector is rightly concerned by ACT's new immigration policy.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Too Lenient

OPINION: Reckless action by Greenpeace in 2024 forced Fonterra to shut down a drying plant for four hours, costing the co-op…

Fossil Fuel Crusade

OPINION: The global crusade against fossil fuel is gaining momentum in some regions.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter