IN­COM­ING

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Daniel Silva com­ments on the lat­est news head­lines im­pact­ing on ex­port trad­ing com­pa­nies.

Daniel Silva com­ments on the lat­est news head­lines and sto­ries im­pact­ing on New Zealand’s trad­ing sec­tor.

Haven’t we done well?

"To­day, af­ter 14 years of ex­is­tence, Fon­terra has around 85 per­cent mar­ket share of New Zealand milk,” Fon­terra chair­man John Wil­son said in He added, “We have grown our in­gre­di­ents' milk pow­der rev­enue from $7.9 bil­lion in the 2002/03 fi­nan­cial year to $16 bil­lion in 2013/14, and our con­sumer and food­ser­vice rev­enue from $4.6 bil­lion to $6.3 bil­lion in the same pe­riod.”

Wil­son is the lat­est in a se­ries of self-con­grat­u­lat­ing farmer-politi­cians.

Back in 1998, Neville Martin, a pub­lic af­fairs man­ager of the Dairy Board, told us, “You may be un­aware the Board's sales in the Asian re­gion have climbed by $5,000 mil­lion over the last years. Con­sumer sales are grow­ing at 15 per­cent an­nu­ally – which you will ap­pre­ci­ate, com­pares with the av­er­age of four to five per­cent achieved by the world's lead­ing fast mov­ing con­sumer goods mar­ket­ing com­pa­nies.”

To which we replied, “We know that the per­for­mance of [pro­ducer board] mo­nop­o­lies is in­deed very good, mainly be­cause they keep say­ing that it is. It is, how­ever, ap­par­ent that it is not good enough to with­stand com­pe­ti­tion from other ex­porters.”

Like­wise, we could tell Mr Wil­son that he should not be too proud of the size of his do­mes­tic milk mar­ket share. Fon­terra's dom­i­nance of that mar­ket is not so much a re­flec­tion of su­pe­rior com­pet­i­tive per­for­mance, but rather the re­sult of its suc­cess in per­suad­ing politi­cians to ex­empt its ex­ports from the anti-

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