Wednesday, 19 August 2015 05:00

Guy keeps the faith

Written by 
Nathan Guy Nathan Guy

Primary Industries Minister Nathan Guy says the agriculture sector remains in good heart despite Fonterra’s recently announced reduced forecast payout. 

“This [payout drop] wasn’t particularly surprising as it reflects the ongoing volatility in the international dairy price, but clearly it will have a significant impact on the dairy industry,” Guy says. 

“Times will be a bit tougher for dairy farmers over the next few months and it will have a flow-on impact in regional communities.”

However, Guy believes the low in dairy prices will be short-term.  “The medium to long-term outlook for our dairy sector, and indeed all primary sectors, is very positive. It is expected to grow by 17% to more than $41 billion over the next four years.”

Guy says impressive growth in the meat, horticulture and seafood sectors will help to offset any decrease in the dairy industry.

“For example, beef prices for New Zealand farmers have risen to record highs and horticulture exports are now worth over $4 billion. The NZ dollar is also around 25 cents lower against the US dollar than this time last year, which is helping all exporters, and interest rates are low.”

Guy is adamant the dairy sector will bounce back. “Dairy farmers are resourceful and know better than anyone that it’s a cyclical business and always has been.”

More like this

Featured

Rural contractors call for overhaul of ag vehicle rules

Following a recent overweight incursion that saw a Mid-Canterbury contractor cop a $12,150 fine, the rural contracting industry is calling time on what they consider to be outdated and unworkable regulations regarding weight and dimensions that they say are impeding their businesses.

NZ seeks certainty on US tariff, says McClay

Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.

Trial shows benefits of spring nitrogen use

A landmark New Zealand trial has confirmed what many farmers have long suspected - that strategic spring nitrogen use not only boosts pasture growth but delivers measurable gains in lamb growth and ewe condition.

Eric Roy: Championing the pork industry

It was recently announced that former MP and Southland farmer Eric Roy has stepped down of New Zealand Pork after seven years. Leo Argent talks with Eric about his time at the organisation and what the future may hold.

National

Machinery & Products

» Latest Print Issues Online

The Hound

"Our" business?

OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it…

Struth blue!

OPINION: Our Aussie mates never miss a chance to put one over us, as seen in a recent op-ed by…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter