Higher Red Meat Returns Boost Farm Resilience in NZ
Red meat farmers are using higher farmgate returns to make their farms more resilient, says Federated Farmers meat and wool industry group chair Richard Dawkins.
They will be happy should Prime Minister Chris Hipkins kick the live export ban into touch, like he has done with a merger of public media entities, a social insurance scheme, hate speech reforms, a biofuels mandate and a cash-for-clunkers rebate to get Kiwis driving electric vehicles.
Hipkins says he is doing all this in the name of helping the country recover from a cost of living crisis.
This is where ACT MP Mark Cameron’s Bill makes much sense. The Ruawai farmer points out that latest forecasts show that live animal exports are expected to generate $500 million for the New Zealand economy this year.
He rightly questions whether New Zealand is wealthy enough to just flush away a half a billion dollar industry – especially amid a cost of living crisis and a natural disaster recovery.
When the Government announced the ban on livestock exports by sea in 2021, it granted the sector a two-year transition period, allowing exports to continue under tightened rules which were introduced after the sinking of the Gulf Livestock 1.
Nearly 6000 cattle and 43 crew, including two New Zealanders, were on board the Gulf Livestock 1 when it capsized in the East China Sea in 2020.
Back then, Agriculture Minister Damien O’Connor said the trade posed an unacceptable risk to New Zealand’s reputation in a world where animal welfare was under increasing scrutiny.
But the Government was advised not to proceed with the ban because it would hammer rural New Zealand.
Cameron refers to the regulatory impact statement that stated “live animal exports provide a boost to New Zealand’s economy, rural communities... any move to prohibit the export of livestock would cause an economic loss to these groups and make recovery from Covid-19 more difficult”.
Federated Farmers says New Zealand has an international reputation for strong animal welfare. It warns the global live cattle trade will continue but from countries and by exporters with lower animal standards filling the gap.
If we were still involved, our high standards would push others into lifting their game.
Cameron will hope that his Bill is picked in the ballot and tabled before MPs.
But he also suggests that if the Labour Government doesn’t want to wave goodbye to a crucial source of revenue for a recovering rural sector, they should not wait for his Bill and just repeal it immediately.
