Dairy unity
OPINION: A last-minute compromise ensured that the election of the new Federated Farmers national dairy chair wasn't a repeat of the Super 15 rugby final - Canterbury versus Waikato.
News reports that the United States' Cooperatives Working Together (CWT) is to increase export subsidy support to US$60 million, is a misdirection of voluntary farmer levies in the eyes of Federated Farmers of New Zealand.
"We need to clear this has nothing to do with the United States Government," says Willy Leferink, Federated Farmers dairy chairperson.
"Cooperatives Working Together is a voluntary producer-funded national program developed by America's National Milk Producers Federation. While designed to assist family farms, New Zealand's farmers know from bitter experience that programmes like this actually hurt family farms.
"You end up maximising energy to get a subsidy instead of listening to markets.
"It also means the United States' taxpayer is paying twice over. The multi-year United States' Farm Bill, now in the Houses of Congress, is costed at something like US$1 trillion. What CWT is doing is cross-subsidising exports through what US consumers are paying domestically.
"While it may be voluntary for producers, it is less voluntary for US domestic customers.
"Money like this would be far better invested in helping dairy farmers adapt systems to a no-subsidy future. Farming is a business after all. In that regard Federated Farmers would be pleased to work with US farming groups to show how we have adapted and evolved.
"There is plenty of scope for us all but that must be based on the market place being an even playing field, Leferink says.
The work Fonterra has done with Ballance Agri-Nutrients Ltd, LIC and Ravensdown to save farmers time through better data connections has been recognised with a national award.
This past week has seen another round of negotiations between India and New Zealand to produce a free trade agreement (FTA) between the two countries.
Cautiously optimistic is how DairyNZ's regional manager for the lower North Island, Mark Laurence describes the mood of farmers in his patch.
The Infrastructure Commission has endorsed a plan by Chorus to expand fibre broadband to 95% of New Zealand much to the delight of rural women.
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.
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