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.”
Forestry Minister Todd McClay has today congratulated the winners of the 2026 Growing Native Forests Champions Awards at Fieldays.
The Government has announced $60,000 to provide one-off grants of $1,000 to each of the 60 New Zealand Young Farmers (NZYF) clubs across the country.
New Zealand’s rural sector has once again demonstrated its generosity, with the second Rural Industry Leaders Dinner, Debate and Auction raising an impressive $400,000 for the Rural Support Trust.
There has been another twist to the Federated Farmers annual election fiasco.
Analysis of decades of research has revealed the implementation of good farming practices plays a critical role in reducing nutrient losses to improve freshwater outcomes.
Yesterday the Government used the opening of Fieldays to announce a major investment, as part of its Land Use Flexibility package, to support a more productive and sustainable future across six sectors including dairy.

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