Thursday, 10 March 2016 11:55

Tractor-driving beneficiaries

Written by 
Andrew Hoggard says claims that New Zealand dairy farmers are subsidised are false. Andrew Hoggard says claims that New Zealand dairy farmers are subsidised are false.

Andrew Hoggard says claims that New Zealand dairy farmers are subsidised are false.

He says detractors of the dairy industry like to claim we are subsidised because of the negative externalities of our industry.

"To them I point out that in Europe those farmers get support payments for environmental issues whereas NZ farmers meet the full cost of those initiatives; the joint Federated Farmers – DairyNZ survey found that in the last decade NZ farmers had [spent about] $1 billion in environmental initiatives.

"People may also point to the irrigation fund as a subsidy. But when you have to pay it back it's called a loan not a subsidy."

Hoggard says he has seen plenty of other comments that NZ increased its production during the last decade, so why can't others?

"Yes, we increased our production but we did so based on the economic reality. The market, through increased prices, said it wanted more dairy, so we responded with increased production. Right now the market is saying the opposite, and at this stage we have responded and our production is down -- though with all this rain many of you... have received we may not be down by as much as predicted.

"If Europe wants to have a social welfare system for tractor driving beneficiaries that's its business but it becomes our business when that system has distorting and negative effects on world trade."

More like this

Owl Farm marks 10 years as NZ’s first demonstration dairy farm

In 2015, the signing of a joint venture between St Peter's School, Cambridge, and Lincoln University saw the start of an exciting new chapter for Owl Farm as the first demonstration dairy farm in the North Island. Ten years on, the joint venture is still going strong.

Featured

$2b boost in NZ exports to EU

New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.

US tariffs hit European ag machinery markets

The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.

Tributes paid to Jim Bolger

Dignitaries from  all walks of life – the governor general,  politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and  friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Follow the police beat

OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter