It was critical NZ focused on the low-cost, pasture-based dairying model and “have confidence in ourselves, our industry and our co-operative”, he said.
Times were tough but if farmers remained positive, channelled their resolve and stayed united the NZ industry would be in a position to capture the upside when the present storm passed.
Coull’s rallying call was in response to criticism in the media about the future of the industry, although he was not specific about what comments or commentators he didn’t like.
“It really frustrates me when I read some of the comments in the media around the current state of play in our industry.
“In my opinion these pieces are often emotively driven with information that is cherry-picked to suit a particular view.”
But he focused on the rapid expansion of Ireland’s dairy industry before and following the removal of milk production quotas by the European Union a year ago.
Several commentators have said the recent EU milk production growth represented a structural change in world dairying and NZ had unsustainably grown its cow numbers too far and too fast, also endangering the environment.
Ireland would process most of the new milk into powders, moving away from fresh milk and cheese, therefore its farmers would be paid more on world commodity prices, he said.
“With a swing in exposure to international powder markets, only the most efficient (Irish) farmers will survive the lows of global volatility.
“We know that volatility is here to stay, that we have the ability to manage onfarm costs as well as, or better, than our international counterparts, and that our co-operative needs to execute its strategy effectively if we are to benefit fully from our co-operative model.”
Coull said the supply/demand imbalance had resulted in world prices well below the margin of profitability for NZ farmers and their international peers.
“If adjustments are made onfarm to reflect the current environment, over time the supply/demand dynamics and global commodity prices will be restored to a level that supports the margin of profitability for the lowest-cost producers of milk – historically NZ farmers have thrived in that space.”
