Damien O’Connor

MP for West Coast-Tasman

Primary Industry spokesperson

MEDIA STATEMENT

21 July 2016

Time for honest dairy sector conversation

Land values, the level of debt, and the ever increasing costs of production pose serious risks to the viability of New Zealand’s dairy industry, says Labour’s Primary Industries spokesperson Damien O’Connor.

“There’s also a risk the National Government will allow foreign investors to get into New Zealand farmland at a time when banks will be squeezing our farmers to reduce their debt in an in an industry where too many farmers continue to make losses.

“The dairy industry faces a far bigger challenge than industry leaders care to admit as the latest indications from the OECD confirm the medium term outlook for dairy is a five dollar plus or minus a dollar scenario.

“This means farmers who cannot make a profit at five dollar average pay-out will be facing drastic options from their banks.

“The Government is out of touch and arrogant and needs to have an honest discussion about the future of the dairy industry and whether family farms, share-milkers and New Zealand ownership are crucial for a better future.

“It’s no good having industry leaders and farmers ignoring the challenge and hoping for the best when strategic planning and hard decisions may deliver a more sustainable and New Zealand-owned dairy industry into the future.

“The Government and the dairy industry must work to export higher value, sustainable products for the changing international market,” Damien O’Connor says.

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