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.”
Canterbury milk processor Synlait has come through tough times and is now ready to scale up from a stable base, says its newly confirmed CEO Leon Fung.
NZPork says a ham made in New Zealand is not necessarily made from New Zealand pork.
Rural Contractors NZ says proposed changes to land transport rules for agricultural vehicles are a welcome response by the Government to out-of-date regulations which have seen members hit with huge fines.
With New Zealand’s greenhouse gas emissions in the spotlight, Auckland scientist Nathan Balasingham says there’s a better way to tackle the problem than shrinking cow numbers or fertiliser usage.
Massey University vice chancellor Pierre Venter says his institute is moving from a period of austerity into a growth phase, based on their new strategy.
With the red meat sector going through a boom time with high prices, the time is right for the industry to step up its investment into developing new food products.

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