Tuesday, 05 July 2016 07:55

Who knows what's happening in dairy?

Written by 
Federated Farmers dairy chairman Andrew Hoggard. Federated Farmers dairy chairman Andrew Hoggard.

Feds dairy chairman Andrew Hoggard is hearing two different outlooks for the sector in the next two years – one gloomy, one optimistic.

He takes the middle ground, believing farmers are looking at a couple more tough years and perhaps some improvement in prices.

But it won't be peaches, he told the conference. "People will have to keep an eye on their budgets to protect their cash; and the key thing is to learn lessons about debt levels and what we pay for land.

"We talked about all this in 2008. Yes, everyone is supportive in these tight times, but this will happen again so we need to remember what happened this time and take lessons from it."

The risk remains that when times get good, people revert to their old habits, Hoggard says.

Some Kiwis show they know little about the farming sector, emailing him to ask why he supports that "foreign company" Fonterra.

"I would hate to see what survey results would show if Joe Public in Wellington or Auckland were asked who owns Fonterra. I hear people saying Fonterra is stealing all the profits and ripping off farmers."

Hoggard hears of people who think Fonterra sells its milkpowder cheaply overseas, not understanding that some is high value ingredients. Though he'd like to see Fonterra doing a lot more, on balance he believes they do a great job.

More like this

Arable ROI Crisis: Why Canterbury Farmers Are Moving On

Mid Canterbury Federated Farmers arable chair, Bevan Lill, said Beef + Lamb NZ data indicated that for the last six years, the average arable return on investment was about 0.8% while inflation ran about 4% - so the average arable farm was going backwards at about 3% a year.

Freshwater Farm Plan Changes Welcomed by Primary Sector

There's been widespread support from the primary sector for the Government's announcement on changes to freshwater farm plans that come under the Natural Environment Bill, which is now set to replace the existing RMA.

Featured

National

Machinery & Products

» Latest Print Issues Online

The Hound

'LinkedIn Greens'

OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…

UK Warning

OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter