Wednesday, 26 August 2015 08:30

Sector lacking strategic direction

Written by 
Damien O'Connor. Damien O'Connor.

Labour spokesman on primary industries, Damien O’Connor says while the dairy developments at Taupo are impressive it’s important the Crown is not exposed to major debt such as that of Solid Energy.

However O’Connor says he’s impressed with Landcorp’s focus on low cost production systems.

He says the dairy industry in general at present is lacking an overall strategic direction and individuals are making potentially risky decisions.

“There are some players in the industry who are intensifying their systems while others are more cautions and probably winding back their production,” he says. 

“That leads to the question of processing capacity in terms of the wider industry and I don’t think anyone would want to see the dairy end up with a meat industry situation where we have excess capacity.”

He notes a number of foreign investors are becoming involved in the dairy processing industry to vertically integrate their systems. 

There is real risk of over-capacity becoming a reality in the dairy sector, he says. While some commentators are encouraging farmers to increase production, farmers who don’t focus on profit will go broke and additional production alone doesn’t develop a better outcome.

More like this

High alert for stink bugs

Biosecurity Minister Damien O’Connor is warning travelling Kiwis to be vigilant as the high-season for the crop-eating brown marmorated stink bug (BMSB) is under way.

O’Connor off to trade talks

Agriculture Minister Damien O’Connor, heads to Thailand today to attend the final Regional Comprehensive Economic Partnership (RCEP) Ministerial meeting, as negotiations enter their final stages.

Angry pills?

A mate of the Hound attended the huge meeting in Timaru, last month, on the Government’s proposed freshwater reforms. Hundreds of anxious farmers turned up to hear officials – as well as Agriculture Minister Damien O’Connor and Environment Minister David Parker – discuss the topic.

» The RNG Weather Report

Featured

Vaccinations protect people, animals

As we struggle to fathom how we ended up in the throes of a measles outbreak again, we’re reminded of the importance of vaccinations to protect us from life-threatening diseases.

 

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Lack of interest

The final list of candidates for Fonterra’s board election is out. Surprisingly only one candidate came through the farmer nominated…

DairyNZ poll

Talking about elections, the DairyNZ board election is shaping up to be a much more exciting affair.

 

» Connect with Dairy News