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Agriculture Minister Damien O’Connor.
Farmers already under the pump in trying to meet the requirements of the Government’s impending Zero Carbon Bill legislation will soon be hit soon by even more compliance costs.
With new freshwater standards to be announced in the next few weeks, Agriculture Minister Damien O’Connor told TVNZ’s Q&A programme that he expects farmers’ costs in meeting new freshwater rules will be about “1-2%.”
O’Connor conceded that even more costs are not something farmers want, yet he expects them to “absorb” them.
While the minister claimed the Government opposes laying even more compliance costs on businesses, he said “some extra costs are essential” and “improved water quality across the country is wanted and necessary”.
Meanwhile, in the interview O’Connor also put the boot into Fonterra’s former board and management for the dairy co-op’s current woes.
“Crazy decisions made over the years are now coming home to roost,” he told Q&A.
But he says the “new” board and management is now being upfront and honest with farmers in its writedowns of the value of the co-op’s investments.
O’Connor was quick to point the finger at Fonterra’s “old” management and governance, saying it was “a good thing” former chief executive Theo Spierings is now gone. He also labelled Spierings’ $4.7 million exit payment as “ridiculous”.
“That is something the old board would have to answer for,” he said.
On the upcoming Dairy Industry Restructuring Act (DIRA) revision, O’Connor said the bill coming before Parliament is “about right”. He claims it will provide Fonterra a bit more protection.
“It means Fonterra [won’t] have to pick up all new milk supply and imposes new environmental and animal welfare requirements on farmers.”
But the minister says he has an open mind about making changes arising from the work of the parliamentary select committee.
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Fresh produce grower and exporter T&G Global has overturned last year’s dismal performance by reporting a half year net profit of $1.7 million.
One of New Zealand’s largest fertiliser plants could be forced to shut down for four months as uncertainty looms over gas supply.
Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.
The Environmental Protection Authority (EPA) is consulting on a proposal to ban weedkillers containing chlorthal-dimethyl (DCPA).
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.
