Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

New report wake-up call for dairy export sector

New report wake-up call for dairy export sector

An international dairy report has shown Fonterra is adding little value to its dairy exports compared to European and Chinese dairy companies, exposing the weakness of the National Government’s volume-led dairy strategy, the Green Party said today.

The International Farm Comparison Network's (IFCN) 2014 dairy company survey ranks the world’s largest milk processors in terms of milk volume collected and the estimated turnover per kg milk – a crude indicator of value creation. While Fonterra ranks second in the world on milk volumes, it ranks below average for adding value.

“One of the world’s largest dairy exporters – Fonterra – is also one of the worst at adding value to its exports,” Green Party Co-leader Dr Russel Norman said today.

“This report is a wake-up call for our dairy export sector and highlights the weakness of the National Government’s volume-led export strategy.

“We need to rethink how we’re adding value to our big exports.

“French dairy company Danone is adding nearly three times more value to its dairy sales than Fonterra, the IFCN study has found.

“For too long, New Zealand companies have failed to capture more of the value of the products we produce here. We are becoming ever more reliant on increasing the volume of exports of simple commodities like milk powder and logs.

“National is not helping our most critical businesses build a strong, value-added export sector.

“Government can work alongside business to add value by encouraging innovation and protecting our lucrative clean, green brand.

“New Zealand’s investment in innovation is poor; we invest half what most other developed countries do on research and development.

“Instead of closing the innovation gap, National is planning on cutting its innovation investment by 10.2 percent over the next three years in real terms.

“Even the National Government’s own 2011 review of innovation recommended progressive increases in government investment in R&D to at least match the OECD average.

“We can also encourage companies like Fonterra to move up the value-added chain by strengthening our environmental standards to protect our rivers and lakes from dairy pollution.

“Until we break the commodity-thinking that dominates our primary sector, we’ll never enjoy the high standards of living other small, developed nations enjoy,” said Dr Norman.

Link to IFCN report:
http://www.ifcndairy.org/media/bilder/inhalt/News/Top-20-milk-processor-list---IFCN.pdf

Green Party paper on innovation:
https://www.greens.org.nz/sites/default/files/econ-innovation-final.pdf

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Another Leader Exiting: Statement From Peter Dunne

I have concluded, based on recent polling, and other soundings I have been taking over the last few weeks, that, the volatility and uncertainty notwithstanding, there is now a mood amongst Ōhāriu voters for a change of MP, which is unlikely to alter...

“I have therefore decided that it is time for me to stand aside, so the people of Ōhāriu can elect a new electorate MP. More>>

 

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election