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."
OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities Party, labelled by some as the 'LinkedIn Greens' for their corporate spin on Green-esque 'tax the rich' policies.
OPINION: Mike Chapman, former chief executive of levy-funded HortNZ, has thrown out a challenge to farmers and growers to put their levy-funded industry organisations under the same scrutiny as fertiliser, electricity, labour and freight.
A team effort that is paying dividends for the wider New Zealand economy.
A strong sense of community involvement is what propelled the Federated Farmers' North Canterbury president Bex Green to the honoured title of the Feds' Advocate of the Year 2026.
Improving health and safety is about incremental gain rather than a sudden decision, says Leeston farmer and Federated Farmers health and safety spokesman David Birkett.
A Palmerston North shearer has been sentenced to six months' community detention and 12 months' supervision after being found to have physically abused three lambs while shearing them.
Power Farming has launched a joint venture in Southland.
Food rescue charity Meet the Need has released its 2025/26 Impact Report, revealing a record year of growth alongside a stark warning: demand for food support across New Zealand is rising faster than supply can keep up.
As we move into the second half of 2026, the Tractor and Machinery Association (TAMA) reports that Year-to-Date figures ending June 30 saw new tractor deliveries hitting 1,386 units or 10.7% ahead of the same period in 2025.
The avocado sector is entering the new season with a larger crop and positive market opportunities.
New Zealand growers have always adapted to changing conditions, but one challenge is steadily gaining ground across the horticulture sector: resistance.
OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…
OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…
