$10 cucumbers?
OPINION: The Hound hears John Murphy, chair of Veg NZ, reckons greenhouse vege producers face severe challenges due to changes in the ETS.
Vegetables New Zealand is welcoming lower consumer prices but is worried about future supply, given all the challenges vegetable growers are facing.
Vegetables NZ chair, John Murphy, says it’s great to be in a period where vegetable supply is good, because growers have planted more and the weather is supporting great spring growth.
“However, growers remain under enormous pressure due to increasing input costs, mounting regulation, skilled labour shortages, and a business environment that does not support expansion,” says Murphy.
He says that if these pressures cannot be reversed, New Zealanders will not be able to enjoy fresh, healthy vegetables at reasonable prices in the future, because more growers will exit the industry, thus reducing supply.
“What’s more, because the industry has not been able to expand to cater for increased demand, New Zealand food security has been compromised,” Murphy says.
“This means that it would only take one big adverse weather event in one of our major growing regions to create significant vegetable shortages in supermarkets for many months.”
He says Vegetables NZ has already engaged the incoming Government on the challenges facing the sector.
“The incoming politicians whom we’ve spoken to are very positive and want to support our industry to expand, so we can provide New Zealanders with fresh, healthy food at reasonable prices. However, there are a lot of fundamentals to get right to return our industry to growth and prosperity,” Murphy concludes.
Reeling from two consecutive years of heavy losses, Alliance says it has appointed Craigs Investment Partners to explore external capital-raising options.
Meat company Alliance has posted a second consecutive trading year of a heavy loss.
Red meat farmers are warning that wholesale conversion of farms into forestry to achieve climate change targets will be unsustainable for the country.
Silver Fern Farms chief executive Dan Boulton says his recent visit to China has left him feeling optimistic about the situation there for the meat industry.
Fonterra leaders are making their case for offloading the co-operative's $3 billion consumer business, noting that its return on capital has been nowhere near respectable.
The horticulture sector is a big winner from recent free trade deals sealed with the Gulf states, says Associate Agriculture Minister Nicola Grigg.
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