Tuesday, 17 August 2021 11:00

Tariffs backfire

Written by Milking It

font size decrease font size increase font size
Print
Email

OPINION: New Zealand, and in particular Fonterra, has come under scrutiny in Sri Lanka for taking home the lion's share of the country's spend on imported powdered milk.

Attemption to 'fix' things, successive Sri Lankan governments have tried to boost local milk production and raise tariffs to stem the US$370 million spent annualy on milk powders.

The law of unintended consequences prevailed and Sri Lanka now has a milk powder shortage. So Fonterra may have the last laugh. Sri Lankan Finance Minister Basil Rajapaksa is looking at reducing the taxes imposed on imported powdered milk to arrest the shortage currently prevailing in market. This could mean more Fonterra milk powder heading to Sri Lanka.

The island nation's milk production is still only around 40% of the total requirement meaning it has to import 60% of its requirements.

More like this

Fonterra Announces Interim Leadership Changes Ahead of Richard Allen CEO Transition

Fonterra has announced interim changes to the leadership of its Global Ingredients business.

Expert Says Fonterra Backing Current Strategy With New CEO Appointment

The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.

Former Fonterra Director Urges Bipartisan Support for India Free Trade Agreement

A former Fonterra director with farming interests in India says he's surprised with the political posturing over the Indian free trade agreement.

Fonterra launches farmer-led youth dairy programme in Waikato and Bay of Plenty

A new farmer-led programme aimed at bringing young people into dairy farming is under way in Waikato and Bay of Plenty.

$10m Boost for Govt Coffers From Pāmu

State farmer Pāmu (Landcorp) has announced it will pay a $10 million special dividend to the Crown off the back of a strong outlook for the business and a capital repayment of $9.5 million following Fonterra's consumer business sale.

Featured

EPA Welcomes Withdrawal of Glyphosate Appeal After High Court Ruling

The Envrionmental Protection Authority (EPA) has welcomed the deicsion by the Environmental Law Initiative (ELI) to withdraw its appeal of the High Court's decision confirming the Authority had acted lawfully when deciding not to reassess glyphosate.

HortNZ Opens Applications for 2026 Leadership Programme Scholarships

Horticulture New Zealand (HortNZ) is inviting applications for scholarships places on its 2026 Leadership Programme.

Southland Couple Crowned 2026 NZ Share Farmers of the Year at Dairy Industry Awards

More than 640 dairy farmers and industry leaders gathered together at Rotorua's Energy Events Centre on Saturday night to celebrate the New Zealand Dairy Industry Awards where Southland couple Scott and Stacey Mackereth were named Share Farmers of the Year.

Āta Regenerative Brings Global Soil and Water Experts to New Zealand Farms

Āta Regenerative is bringing international expertise to New Zealand to help farmers respond to growing soil and water challenges, as environmental monitoring identifies declining ecosystem function and reduced water-holding capacity across farms.

Yili’s New Zealand Dairy Group Posts Record $1.58 Billion Revenue

Yili's New Zealand businesses have reported record profits following a major organisational and strategic transformation.

Hino Truck Owners Have 10 Days Left to Register for Proposed $10.9M Settlement

Owners and lessees of certain Hino Trucks New Zealand diesel vehicles have just 10 days remaining to register or opt out of a proposed $10.9 million class action settlement.

National

Fonterra launches farmer-led youth dairy programme in Waikato and Bay of Plenty

A new farmer-led programme aimed at bringing young people into dairy farming is under way in Waikato and Bay of…

Dairy Women’s Network Names 2026 Regional Leader Award Finalists

Ashleigh Gordon and Leilani Lobb have been named as the two finalists for Dairy Women's Network's (DWN) 2026 Regional Leader…

Farmers Face Change but Opportunity as Sector Evolves

New Zealand's food and fibre sector is entering a period of significant transition and Irricon's refreshed brand reflects how both…

Meat and Dairy Vital for Health and Hunger Solutions, Experts Say

The executive director of the Global Dairy Platform (GDP) Donald Moore says research being done at Massey University's Riddet Institute…

First-Farm Buyers Braden and Brigitte Barnes Secure Ownership with Award Support

Braden and Brigitte Barnes have taken the leap into farm ownership to purchase their first farm with support from the…

Machinery & Products

Nissan NZ Launches MORE Ownership Programme with Extended Warranty

Nissan has announced that the Nissan MORE Ownership Program, available to New Zealand customers, is an initiative to deliver peace of…

Massey Ferguson Introduces High-Efficiency Small Square Baler

Massey Ferguson has announced the release of the SB.1436DB small square baler to New Zealand, featuring a unique layout producing…

Massey Ferguson and Eicher Drive Record Growth for TAFE in 2026

Having gone through a troublesome “divorce” from its association and part ownership of AGCO, Indian manufacturer TAFE is said to…

Dairy Wearables Gain Value Through Integration with MINDA System

Wearable collars, ear tags and boluses are becoming increasingly common on Kiwi dairy farms.

SenseHub Dairy Launches Inline Milk Sensors for Real-Time Cow Data

Two inline milk sensors are now available on monthly subscription from SenseHub Dairy, adding milk yield and quality insights to…

» Latest Print Issues Online

Visit archives

Tariffs backfire

More like this

Fonterra Announces Interim Leadership Changes Ahead of Richard Allen CEO Transition

Expert Says Fonterra Backing Current Strategy With New CEO Appointment

Former Fonterra Director Urges Bipartisan Support for India Free Trade Agreement

Fonterra launches farmer-led youth dairy programme in Waikato and Bay of Plenty

$10m Boost for Govt Coffers From Pāmu

Popular Reads

Fonterra Announces Interim Leadership Changes Ahead of Richard Allen CEO Transition

$120m Tōrea Orchard Development to Produce 116 Million Apples in Mid-Canterbury

$3B Urea Plant To Be Built In Southland

Yili’s New Zealand Dairy Group Posts Record $1.58 Billion Revenue

Cyclone Vaianu Brings Heavy Rain, Flooding Across NZ

Featured

EPA Welcomes Withdrawal of Glyphosate Appeal After High Court Ruling

HortNZ Opens Applications for 2026 Leadership Programme Scholarships

Southland Couple Crowned 2026 NZ Share Farmers of the Year at Dairy Industry Awards

Āta Regenerative Brings Global Soil and Water Experts to New Zealand Farms

Yili’s New Zealand Dairy Group Posts Record $1.58 Billion Revenue

Hino Truck Owners Have 10 Days Left to Register for Proposed $10.9M Settlement

National

Fonterra launches farmer-led youth dairy programme in Waikato and Bay of Plenty

Dairy Women’s Network Names 2026 Regional Leader Award Finalists

Farmers Face Change but Opportunity as Sector Evolves

Meat and Dairy Vital for Health and Hunger Solutions, Experts Say

First-Farm Buyers Braden and Brigitte Barnes Secure Ownership with Award Support

Machinery & Products

Nissan NZ Launches MORE Ownership Programme with Extended Warranty

Massey Ferguson Introduces High-Efficiency Small Square Baler

Massey Ferguson and Eicher Drive Record Growth for TAFE in 2026

Dairy Wearables Gain Value Through Integration with MINDA System

SenseHub Dairy Launches Inline Milk Sensors for Real-Time Cow Data

» Latest Print Issues Online

Milking It

Too Lenient

Fossil Fuel Crusade

» eNewsletter

Tariffs backfire

More like this

» Latest Print Issues Online

» Connect with Dairy News

» eNewsletter