increase font size
Subsidies handed to European farmers are partly responsible for the dip in global dairy prices, says Federated Farmers Dairy chairman Andrew Hoggard.
Opening the Dairy Council and Sharemilkers' section conference in Nelson today, Hoggard says this structural issue is adding downward pressure on prices.
Hoggard attributed the dairy downturn to both "cyclical and structural nature".
"It started with a single cyclical event; low demand from China and high levels of supply worldwide," he says.
"But what is holding down prices is an underlying structural issue with the global dairy market."
Dairy remains one of the most highly protected marketed products in the world.
Only 13% of global dairy consumption is accessible to NZ dairy exports at tariffs below 10%, Hoggard says.
These barriers mean only a small volume of global products is traded; liquidity of the global dairy market is constrained making it more prone to volatility.
"And then this volatility is compounded because some of the large developed milk producing countries continue to use subsidies and supports to shift the price risk from their farmers and onto the international market," says Hoggard.
"And then it is the international market that shifts the milk price."
Hoggard says its hypocrisy for these subsidised farmers to declare they want to export but not import.
"Sorry guys it's a two way street.
"Subsidies and support payments have the effect of insulating farmers from the reality of the world markets."
A rare weather double-whammy has seen many South Island farmers having to deal with unseasonal snow while still cut off from power supplies after an unprecedented windstorm.
OPINION: For close to eight years now, I have found myself talking about methane quite a lot.
OPINION: Recent media commentary from Southland Federated Farmers has raised concerns among our rural communities, particularly around Environment Southland’s approach to winter grazing inspections and nitrogen reporting. But let’s be clear, much of what’s been said simply doesn’t reflect reality.
OPINION: Environment Canterbury's (ECan) decision recently to declare a so-called “nitrate emergency” is laughable.
A shameless political stunt is how Federated Farmers is describing the Canterbury Regional Council decision to declare “a nitrate emergency” on the back of its latest annual groundwater quality survey.
Engaging, thought provoking speakers, relevant seminars and relatable topics alongside innovative produces and services are the order of the day at the 2026 East Coast Farming Expo.
Farm supplies trader Ruralco has recovered from two consecutive years of losses to post a $1.25 million profit for the 2025 financial year.
Naki Honey, a New Zealand manuka apiary company, has crafted what is believed to be the world's most expensive honey.
OPINION: Wool farmers believe the future of strong wool still holds promise.
Applications are open for Horticulture New Zealand's (HortNZ) 2026 scholarship programme, with 20 funding opportunities available.
OPINION: Farmers are being asked to celebrate a target that changes nothing for the climate, wastes taxpayer money, and ignores real science.
OPINION: The Greens have taken the high moral ground on the Palestine issue and been leading political agitators in related…
One of the most galling aspects of the tariffs whacked on our farm exports to the US is the fact…
