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Cooperate, cooperate, cooperate....

Greetings Readers

NZDG’s projected record payout of $4.30 is welcome news and comes at a time of industry turmoil.

We have examples showing up of the disasters that can happen from a producer’s point of view if we forget the objective of being cooperative as farmer producers – farm gate return that give farm profit.

Enza’s changed shareholdings gives a sound warning to those who see the dealing in the capital asset of the farmers production and marketing system and the subsequent loss of control to the ‘money gnomes’ as being an acceptable exchange. It is a severe warning but we see the tip of that failure showing with the jointly owned farmer and NZDG held distribution company going public. The satisfaction will be momentary, the loss will be for ever.

The Australian Dairy Industry is in a state of turmoil due to deregulation. Embarked on with the best of intentions and with reasonable support but the reality of a fifty- percent cut in price is putting producers out of business and the worst aspect is - nobody seems to care! The consumer is getting cheaper milk the retailer has maintained margin and the producer faces expensive change or ruin.

It is critical that as producers and owners of the industry the welfare of the family farmer is not sacrificed to the whim of personal politics or a greedy ‘cashing up’ mentality.

New Zealand dairy producers are in a better position to maintain and expand their world market position than any of our competitors. We have a vision, new innovation, steady expansion, determined promotion and excellent management – all of which are present in our current structures. Capital is not the constraint – unity is.

We are running out of time and perhaps patience.

Good farming

The Editor


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