Tuesday, 17 August 2021 11:00

Tariffs backfire

Written by Milking It

font size decrease font size increase font size
Print
Email

OPINION: New Zealand, and in particular Fonterra, has come under scrutiny in Sri Lanka for taking home the lion's share of the country's spend on imported powdered milk.

Attemption to 'fix' things, successive Sri Lankan governments have tried to boost local milk production and raise tariffs to stem the US$370 million spent annualy on milk powders.

The law of unintended consequences prevailed and Sri Lanka now has a milk powder shortage. So Fonterra may have the last laugh. Sri Lankan Finance Minister Basil Rajapaksa is looking at reducing the taxes imposed on imported powdered milk to arrest the shortage currently prevailing in market. This could mean more Fonterra milk powder heading to Sri Lanka.

The island nation's milk production is still only around 40% of the total requirement meaning it has to import 60% of its requirements.

More like this

Fonterra's Whareroa Wins Directors Award

Fonterra's Whareroa site took home the prestigious Directors Award at the co-op's 'Oscars of Manufacturing', while Clandeboye led the way with multiple wins at this year's Best Site Cup.

Dairy Holdings CEO Colin Glass Retires After 25 Years of Growth

After 25 years it is the right time to step away, says Colin Glass, the retiring chief executive of New Zealand's largest private corporate dairying company, Dairy Holdings.

Fonterra Expands China Foodservice Business with New Anchor Essence Cream

Fonterra is strengthening its foodservice presence in China with the launch of a new cream for professional bakeries at Bakery China 2026 in Shanghai.

Smith V Fonterra

OPINION: To a chorus of crying greenies, and not a minute too soon, the Government has moved to put the courts back in their place through proposed amendments to the Climate Change Response Act 2002, intending to limit climate litigation claims such as Smith v Fonterra, in the interests of providing greater certainty for vital industry.

Fonterra Opens 2026/27 Milk Price Forecast At $9.75kgMS

For the third season in a row, Fonterra farmers are in for a farmgate milk price near $10/kgMS.

Featured

Czarnikow Launches Digital Milk Pricing Tool in NZ

New Zealand dairy farmers are set to be the first in the world to receive access to a new digital physical milk pricing tool that enables them to fix the price for their physical milk.

Pāmu Opens Farm Gates for Summer Open Farm Days

State farmer Pāmu is opening its farm gates this summer in an effort to give the rural sector the opportunity to see how large-scale, multi-system farming is delivering productivity and profitability across New Zealand.

Northland Study: Emissions Cuts "Unsustainable" for Dairy

A five-year study has found that the cost of reducing emissions without technology may be significant and unsustainable for Northland dairy farmers.

DairyNZ: Waikato Farmers Need Certainty on PC1 Rules

DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.

NZ Rural Contractors Push for Urgent VDAM Rule Reform

While the Government has moved quickly to make commercial hauliers' lot easier during the current fuel crisis, they appear to be stuck in the creep box when it comes to the agricultural industry.

Government's New Planning System, PC1 'Won't Mesh Together Well'

Waikato farmers have been told that the Government’s new planning system legislation and the region’s Plan Change 1 (PC1) “won’t mesh together very well”.