Friday, 19 April 2013 11:41

Westpac comments ‘amaze’

Written by 

Federated Farmers adverse effects spokeswoman Katie Milne says she is amazed that Westpac economists believe the drought may have no effect on the economy because of rising dairy prices.

 When this drought does fully break, its effects will be felt for two seasons or more as herds are rebuilt and pasture repaired, she says. The most recent rains may have taken the pressure off some areas, but others remain in a precarious state.

"Farmers I speak to in the areas that have been dry remain concerned," says Milne.

"If it rains in central Auckland or Wellington, it does not mean it is raining in Taihape. That said things are looking up in the Bay of Plenty but they remain tough in Hauraki-Coromandel.

"The West Coast of North Island, from South Auckland all the way north, remains pretty dry. I can add to that the North Island's East Coast, parts of the Waikato and the Central North Island. While Manawatu is out of the woods, Rangitikei remains firmly gripped by drought.

"We seem to be getting through the worst of it on the South Island's West Coast but Southland and Otago could use a good soaking followed by sunshine."

If winter comes early, we will swing from one set of conditions not conducive to pasture growth to another, she says.

Stated comments by Westpac that the drought may have no effects on the economy would be news to Federated Farmers Rotorua dairy chair Bryan Osborne, Milne says. The drought has cost his farm 30,000kg of milksolids or around $180,000. "We are not using this to get the violins out, but to challenge Westpac over its claim this drought will cost New Zealand nothing," she says.

"Milk production out of the North Island has dropped like a stone and you cannot export what you are not producing, no matter what price you get.

"The effect on sheep and beef farms is also dire. Capital stock numbers have been cut to the bone and these animals provide the basis for a farms future crop. Red meat also happens to be New Zealand's number two export.

"Unlike cows which went to the bull in October or November, ewes have only been going to rams in the last two months, during the peak of the drought, to get in lamb. This will affect fertility, so sheep farmers will likely be hit with lower lambing percentages next spring.

"Farms are biological systems and not a factory. For sheep and beef farmers capital stock and stocking numbers will need to be rebuilt. That could take several seasons so this drought's after effect will be felt for years," Milne says.

More like this

NZ Farm Accident Claims Drop Nearly 35% Since 2020

A huge reduction in ACC claims from on-farm accidents over the last five years is due to thousands of small, practical decisions being made in sheds, yards, paddocks and around kitchen tables across the country, says Safer Farms ambassador Lindy Nelson.

Featured

RSE Scheme Changes Coming - McClay

Agriculture Minister Todd McClay has admitted that a scheme bringing workers from Pacific nations to work on orchards has become too hard to navigate but says changes are coming.

Andy Macfarlane Joins AgriZeroNZ Board

Canterbury farmer Andy Macfarlane has been appointed to the board of AgriZeroNZ, the public-private partnership designed to accelerate the development and deployment of emissions reduction tools for New Zealand farmers.

National

Machinery & Products

 

 

» Latest Print Issues Online

The Hound

True Reflection?

A fair question has been raised about how member-funded organisations should conduct themselves when taking a public position on any…

Civil Circus!

OPINION: It really is getting harder to lampoon government bureaucrats when they do such a good job of it themselves.…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter