O’Connor is pleased with the export performance of primary producers but ANZ pundits disapprove of govt impediments

Agriculture  Minister  Damien O’Connor  was  celebrating the  performance   of  New Zealand’s  farming industries  this  week — but  farmers   themselves  are  battling some  of  the  worst  weather   in  recent  history. 

It’s  little   consolation  that  irrigation dams  are  overflowing. Soils  are  saturated  and in some  regions dairy  farmers  are  looking  in  vain for  the  tankers  transporting milk  to  factories.

O’Connor  says  he  is  closely monitoring the  current  weather  events  

He  reckons  in the two years since COVID-19 came knocking on  doors, “collectively, we’ve done a terrific job keeping the wheels of the economy turning”.

ANZ  agri-economists  say the wet conditions  across most of New Zealand have made it very difficult for wintering stock as soils are saturated.  Some regions have received more rain in the past month than they have all year.

Delays getting stock to processors also mean some farms are carrying more stock than normal for this time of the season.

They  suggest the labour shortages that meat processors have been faced with might require a reconsideration of farmers’ heavy reliance on being able to get space at processors when they want it with little notice. More forward planning, including supply contracts, could be beneficial for all parts of the supply chain.

In  his  press  statement,  O’Connor  says final export data shows New Zealand’s food and fibre exports for the year ending June 2022 leapt to $53.3 billion, adding $1.1 billion to the expected $52.2 billion announced in June,

“This outstanding result is testament to the ongoing efforts of our farmers, grower, foresters, fishers and processors.The June quarter saw a strong finish to what  had already been forecast to be a record year”. Meat and dairy exports led the charge in bringing an additional $1.1 billion into the economy.” 

He  noted the data also showed seafood and horticulture exports surpassing the previous year’s exports—”fantastic news.”

O’Connor said the Government is committed to continuing its work with the food and fibre sector on its ongoing success.

“We developed the Government and sector roadmap Fit for a Better World to lift productivity, sustainability and jobs because we all recognise our markets are evolving and the climate is changing.

“Through Budget 2022, we committed more than $1 billion to help the sector reduce agricultural emissions, boost productivity, and provide vital support to farmers and growers on the ground such as through the new On Farm Support team.

“We’ve also committed more than $216 million in projects through the Sustainable Food and Fibre Futures fund. The sector’s contribution takes total funding to more than $482 million.

“Together we’re backing a large range of projects from understanding regenerative farming practices in the New Zealand context, to exploring and progressing new sectors, such as hemp and medicinal cannabis.”

The  food and fibre sector continues to head New Zealand’s export-led economic recovery.

Its exports made up 81.4%  of New Zealand’s total exports in the year to 30 June 2022.

ANZ  agri-economists   are  not quite  as  enthusiastic  about  what  the  government  has  done. 

They  say  the flood of regulatory change shows no sign of letting up. While there is widespread support for the intent of many of these rules, the practicality of implementing rules and the  unintended consequences remain a key concern for many.

“Recently the Climate Change Commission has recommended sharp upward changes in pricing guidelines for carbon credits released in the quarterly government auctions, and have advised they don’t support including sequestration within the He Waka Eke Noa framework.

“What is very clear is that we still have some way to go in terms of regulatory change, and consents will be something most landowners will need to get used to”.

One thought on “O’Connor is pleased with the export performance of primary producers but ANZ pundits disapprove of govt impediments

  1. It fascinates me how Labour rejoices at the export revenue which funds a lot of Govt expenditure but continues with their illogical draconian new legislation for farmers. Not a logical brain amongst them all!

    Liked by 1 person

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