Dairy sector profit still on the table, but margin gap tightens
DairyNZ’s latest Econ Tracker update shows most farms will still finish the season in a positive position, although the gap has narrowed compared with early season expectations.
For the next six years, an avalanche of regulations around water quality, environment, winter grazing and climate change was dumped on the farming sector. While industry body groups like DairyNZ and Beef+Lamb NZ tried to work with Labour on emissions pricing, the rural sector turned its back on Labour, stripping the party of almost all rural seats in the last election.
It’s inevitable that one day, six or even nine years from today, Labour will be returned as the government. And this time, Feds don’t want to be caught short. Hence, earlier this month, Feds leaders hosted Chris Hipkins, Carmel Sepuloni, Willow Jean Prime, Jo Luxton, Jan Tinetti, Rachel Brooking, Tangi Utikere, Glen Bennett and their senior staff for two days in the Waikato. The first day included meetings and presentations. Day two included three farm visits. DairyNZ, Beef+Lamb NZ, Groundswell and Rural Women NZ were also represented.
Feds president Wayne Langford explained that the last few years under a Labour government were incredibly challenging for rural communities, and farmer confidence hit record lows.
“There’s no denying that part of the problem was that we didn’t have strong relationships between Labour and farmers, and there wasn’t a lot of trust or understanding. That’s why we’ve really invested some time trying to establish relationships, grow their understanding of farming, and hopefully build some trust.”
To win back farmers’ trust, Labour will need to show that it’s willing to drop its arrogant attitude, on display during its last three years in power, and show some respect to the farming sector. Talkfests and farm visits alone won’t be enough to win back the rural vote.
