Farmers have fortitude to get through this
With all our primary producer farmers well into winter management on their respective properties, there is definitely no unanimous doom and gloom mindset, from my observations to date.
That is backed up by the many media reports from the National Fieldays four day event. Sure, anticipated belowoptimum farm gate returns are a serious concern, but farmers in general do portray considered physiological fortitude to farm through this actual business administration challenge.
What won’t change is the worldwide admiration of New Zealand livestock farmers, who collectively calve and lamb literally millions of stock in just over 15 weeks to produce a top-quality food.
It is that very aspect that will keep rural lender trading banks working hard to support their farmer customers. They know very well the revenue flow that generates throughout New Zealand even when the world market for product appears ‘‘flat’’.
It was public knowledge the lengthy debate on selling raw milk to the public. I have just received advice from the office of Jo Goodhew, Minister for Food Safety. That after extensive consultation and review, the Government will allow farmers to continue to sell raw milk directly to the public from the farm and via home deliveries.
The Cabinet paper, Regulatory Impact Statement, the summary of submissions, and the report Review of Evidence for Health Benefits of Raw Milk Consumption from the Office of the Prime Minister’s Chief Science Adviser is available on the MPI website.
As you would expect, there is a fair but rigorous health and safety requirement on such direct selling by dairy farmers.
I do have the privilege to mix and mingle by invitation, to functions that are attended by senior executive of different entities associated with our primary industry export business. I suggest it would be good if a graduate student could be commissioned by a philanthropist to produce a thesis on how many times ‘‘the ticket is clicked’’ from farm gate to plate.
Plus a senior banker was expecting the OCR to drop 50 basis points, not 25 as it was.
Basically the rationale for that comment was the huge amount of offshore cash deposits exploiting our interest rate, compared with country of origin of that cash. So really the Government and the Reserve Bank have to really work hard on managing our economic direction, especially over the next 36 months I believe.
- Stew Wadey is chair of the Matamata District Federated Farmers