Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Dairy Boom Highlights Need For Reform

Dairy Boom Highlights Need For Reform

The dairy boom highlights the urgent need for reforms to the struggling sheep and beef sector, said Keith Kelly, chair of Federated Farmers’ Meat and Fibre industry group.

“Good on dairy farmers for getting a decent return on their investment and hard work. They deserve it and sheep and beef farmers wish them all the best.

“But sheep and beef farmers are not reaping the same rewards and many would have listened to radio reports yesterday of the dairy payout increase and felt very deflated about the state of their industry,” Mr Kelly said.

“Sheep farmers’ average income is well down. Twenty dollars a head for store lambs is not sustainable and many farmers are in dire straits, particularly on the eastern side of the North Island where they haven’t properly recovered from the summer and autumn drought. Prices of finished lambs are also well below their long-term averages and last year’s prices.

“Reasons for this crisis include the strong New Zealand dollar and higher costs imposed by legislation, procurement activities that add cost and not value, aggressive selling of product overseas, and the growing power of overseas supermarket chains. That said, farmers must take responsibility for their predicament due to their complacency and failure to create an industry that works for producers,” Mr Kelly said.

“The key to fixing the situation is replacing the outmoded marketing model the industry continues to use. We remain a fragmented and overly competitive industry when it comes to selling. Until we unite and begin selling our premium products at premium prices, we will continue to be price takers rather than price makers.

“To achieve change, the industry must develop a marketing strategy that recognises and delivers on this model. We need to focus on very high quality products, having processors that are skilled in their preparation, marketers that are able to set prices and, importantly, seek out new high-value markets for our world-leading products.

Federated Farmers’ meat and fibre industry group is committed to working on pushing through these much-needed reforms, so that sheep and beef farmers can match or exceed the success of our friends in the dairy sector.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news