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

AgriSIMA 2026 Paris machinery show cancelled

With the current situation in the European farm machinery market being described as difficult at best, it’s perhaps no surprise that the upcoming AgriSIMA 2026 agricultural machinery exhibition, scheduled for February 2026 at Paris-Nord Villepinte, has been cancelled.

NZ tractor sales show signs of recovery – TAMA

As we move into the 2025/26 growing season, the Tractor and Machinery Association (TAMA) reports that the third quarter results for the year to date is showing that the stagnated tractor market of the last 18 months is showing signs of recovery.

National

Machinery & Products

New pick-up for Reiter R10 merger

Building on experience gained during 10 years of making mergers/ windrowers, Austrian company Reiter has announced the secondgeneration pick-up on…

Krone EasyCut B1250 fold

In 2024, German manufacturer Krone introduced the F400 Fold, a 4m wide disc front mower, featuring end modules that hinge…

» Latest Print Issues Online

Milking It

Microplastics problem

OPINION: Microplastics are turning up just about everywhere in the global food supply, including in fish, cups of tea, and…

Job cuts

OPINION: At a time when dairy prices are at record highs, no one was expecting the world's second largest dairy…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter