Damien O’Connor Criticises Budget 2026 as ‘Miserable’ for Rural New Zealand
A miserable budget that didn’t deliver much for anyone.
Agriculture Minister Damien O’Connor told the NZ Institute of Primary Industry Management conference that more R&D spending is needed in the whole economy and that not all agricultural investment will be behind the farmgate.
He says MPI’s economic intelligence unit is getting the world’s best information on trends and information on protein, fibre, etc.
“We are looking out for that information to try to bring it back and share it, but the question is should we force-feed money to try to make progress? If industries don’t see the need to do this they are going to fail anyway. We are not going to subsidise…. we went beyond that in the 1980s.
“We have to lift our game across the board because we are being challenged by all these alternatives.”
He cites margarine as an example. “As an industry we fought it and they ran over us”. It was easier to spread and after about 15 years of resistance we finally looked at spreadable butter. (Spreadable butter was made by Kaipara Co-op Dairy Co in the early 1970s. Ed.)
“For about 30 years we were beaten up by margarine until finally we got to the point where we said ‘this highly processed stuff is probably worse for you than butter’.”
“We have to wake up and be more mature about the challenges coming at us.”
“It won’t be just a picture of the Southern Alps,” he said, referring to a comment from a conference attendee that was our only response so far to the threat from alternative proteins.
“It will be a whole lot around the nutritional value of meat and ensuring there is not unwanted residues in there.
“The ability to test around residues is going up and up.”
For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.
West Otago dairy farmer Luke Kane has been awarded the 2026 Rabobank Dr John Morris Business Development Prize.
OPINION: As the general election approaches, political parties are churning out policies in the hope of attracting more votes.
An LIC bull, Tronnoco AR Sadio-ET S3F, bred by Tony and Keri O'Connor of Tronnoco Farming Co Ltd near Timaru, has won the 2026 Mahoe Trophy.
With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.
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.

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