Tuesday, 16 June 2015 11:05

More innovation needed – PM

Written by 
Prime Minister John Key pinches a chip from the lunch of Mark Hohneck at Fieldays. Prime Minister John Key pinches a chip from the lunch of Mark Hohneck at Fieldays.

Prime Minister John Key says the lower dairy payout brings an even greater need for innovation in the primary sector.

Opening the 47th National Fieldays at Mystery Creek, Key noted that the theme of the event – innovation – was appropriate and critical for New Zealand to keep its place as a leading producer of primary products and for the economic survival of many people.

The PM says NZ is now using science to do many things better, such as producing more and better lambs from fewer ewes and improving their survival rates.

“All sorts of businesses here at Fieldays are geared to basically improve the productivity and profitability of what is happening on farm. If you walk around the 1000 displays here, a lot of them have an innovation or science bent. NZ productivity on farm has been dramatically rising and businesses are becoming a lot more productive. It’s one of the reasons why they are able to cope with a higher exchange rate.” 

Key says everyone knows dairy is going through a tough time, but last year dairy farmers were looking at an $8.40/kgMS payout.

“It feels a bit tough now when our poor old dairy farmers are looking at a payout that’s got 4 in front of it. That shows why it is so important we keep innovating on farm because we can’t stop the cycles of commodity prices and the variation of exchange rates. 

“But it’s at the toughest of times that we have to keep investing on farm and using that research and new techniques to make sure we lift profitability in what we are doing.  Dairy farmers are probably feeling a bit nervous at the moment, but I am told things are going to recover.” 

Key says the news that Fonterra is to shed staff and that its performance is being questioned is healthy – inasmuch as it’s the [farmers’] right to challenge the board and make sure they [the farmers] feel comfortable with its directions and decisions. But Key says it’s not for him to make a judgement as he is not an owner of Fonterra. He sees a lot of good things coming out of Fonterra.

He is also impressed with the efforts of the other primary sector groups, and he singled out kiwifruit as a sector that is picking up.

“It wasn’t that long ago that PSa was wreaking havoc in the kiwifruit industry. Today we are seeing kiwifruit doing immensely well,” Key says.

More like this

Trump tariffs

OPINION: Former politicians seem incapable of staying away from the limelight after they retire.

The sniff test — Editorial

Former Prime Minister John Key said, at the start of the Level 4 Lockdown, that businesses should be concerned about their reputations.

Foreign investment is critical

Foreign investment not only brings in money but links New Zealand into foreign markets, says former Prime Minister John Key.

Featured

Farmers urged not to be complacent about TB

New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.

Editorial: Making wool great again

OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.

Helping protect sheep from parasites

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s New Zealand Veterinary Association (NZVA) awards. As part of a series looking at this year’s rural winners, Leo Argent talked with Ginny Dodunski, winner of the Veterinary Impact Award for raising the profile of the Wormwise programme.

National

Machinery & Products

Buhler name to go

Shareholders at a special meeting have approved a proposed deal that will see Buhler Industries, the publicly traded Versatile and…

Grabbing bales made quick and easy

Front end loader and implement specialist Quicke has introduced the new Unigrip L+ and XL+ next-generation bale grabs, designed for…

» Latest Print Issues Online

The Hound

Make it 1000%!

OPINION: The appendage swinging contest between the US and China continues, with China hitting back with a new rate of…

Own goal

OPINION: The irony of President Trump’s tariff obsession is that the worst damage may be done to his own people.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter