DairyNZ: Strong payouts offset high farm costs
The dairy sector is in a relatively stable position, with strong milk price payout forecasts continuing to offset ongoing high farm costs, according to DairyNZ.
DairyNZ has rejected the Government's latest proposal as lacking and not reflecting the progress the dairy sector has been seeking.
Van der Poel says HWEN is a partnership between Māori, the Government and industry and its plan for the primary section was submitted to the Government, who came back with their own proposal.
"The steering committee has done its job, but we've agreed on going forward," van der Poel told Rural News. "However, a lot depends on what the new government - to be formed after October 14 general election decides." Van der Poel says HWEN will continue to work with the new government on emissions pricing for the agriculture sector.
He points out that both main parties - Labour and National - have committed to meeting the targets of the Paris Climate Agreement.
"New Zealand would always have a commitment to the Paris Agreement, regardless of who the government is, and therefore agriculture would always have to be part of the solution."
But he adds that it must be fair and equitable and work, and DairyNZ won't support something that destroys the sector.
Van der Poel blasted the Government's latest emissions pricing plan, saying that it shows little understanding of the challenges dairy farmers are facing this season.
"Dairy farmers are facing significant pressure right now, with business viability under threat," he says. "The issue of emissions pricing is of huge importance behind the farm gate, and we all need to keep our farmers top of mind."
He says the sector will continue to work with government to seek a workable solution - but that no deal is still better than a bad deal.
DairyNZ acknowledges the issues the sector raised in December have been considered but the latest announcement lacks the detail the sector needs to provide confidence in the next steps towards implementation.
For example, how revenue will be recycled has not been detailed.
"It is also not appropriate to announce emissions pricing without some sort of guide around cost - farmers need to know the detail to be able to plan," says van der Poel.
Change of Heart
DairyNZ chair Jim van der Poel won't be retiring from the industry lobby board, as earlier planned.
Instead, the Ohaupo farmer is seeking re-election for another three-year ago, van der Poel indicated he would step down from the board this year.
Van der Poel and Dairy Holdings chief executive Colin Glass are due to retire by rotation this year, Glass has indicated that he won't be seeking re-election.
Van der Poel told Rural News that with Glass leaving the board and a new chief executive starting soon, he consulted with the board and it agreed that it would be helpful for him to stand for another term.
