Dairy Industry Issues
The dairy industry is a key contributor to New Zealand's economy, particularly in the current economic crisis. In the 2009/10 season, the industry's 11,691 herds produced 16.5 billion litres of high quality milk, earning 24 percent of New Zealand's total $41.1 billion in exports during 2010.
While the farmer owned co-operative Fonterra is the powerhouse of the dairy industry, collecting around 89 percent of New Zealand's milk, there are other co-op contributors to the industry, Westland Milk Products and Tatua. In addition about 7 percent of the nation's milk is collected by various independent processors.
All processors of dairy products are allowed access to Regulated Raw Milk under the provisions of the Dairy Industry Restructuring Act 2001 (DIRA). DIRA and the Regulations have been under constant scrutiny for most of its life, with DIRA amended in 2010 and the Regulations amended in 2007, 2008, 2009 and 2010. This constant revision is a distraction to the dairy industry. We have been an active participant during all revisions of both DIRA and the Regulations, with the goal of seeing a fair outcome for all concerned.
Federated Farmers has been involved in the debate on milk pricing, with a submission made to the Commerce Select Committee's Inquiry. We do not believe that consumers are paying too much for milk and we believe the market is working as it was intended. Consumers should shop around for the best deals.
Dairy farmers are lifting their environmental performance. They have been given more tools to help deal with effluent in the form of the Farm Dairy Effluent Design Standards and the accompanying Code of Practice. More farmers are complying with their effluent consents. All dairy companies are demanding better environmental performance from their farmer suppliers and Federated Farmers has been part of this strategy.
Federated Farmers has also been involved with the push to reduce routine inductions of dairy cows, has been involved with the work to ensure the welfare obligations of bobby calves are met and is on the forum to minimise effluent spillage on roads.
Federated Farmers wants
- Government to settle Dairy Industry Restructuring Act and Raw Milk Regulations
- A holistic view taken of environmental degradation that recognises the steps being taken to improve performance.
Spokesperson
Federated Farmers Dairy spokesperson is National Board member and Dairy Chairperson Willy Leferink. You can contact him at wleferink@fedfarm.org.nz.
