Sunday, April 21, 2024

Running the ruler over representation

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When the chips are down in any agricultural sector the silver lining is often how well all involved come together to get through the tough times. 
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That’s being seen very clearly at present in dairying with dairy companies, industry bodies and companies well connected to the fortunes of farmers coming to the fore to provide support, host events and generally reassure everyone there will be a better tomorrow.

This sort of gathering was seen when the kiwifruit industry confronted its Psa crisis a few years back. Gone were the bitter arguments that had preceded Zespri’s formation, as growers recognised if they weren’t affected now, they certainly would be in the future. While that unity might have weakened when growers decided whether to get involved in a class action against the Ministry for Primary Industries, the state of good health the industry enjoys today can’t be disputed. 

Tackling the problem, dealing with it and moving on has meant strengthening returns and grower commitment and for many an increased realisation that they’re all in this together.

With the red meat industries there’s no need to reiterate how tough things have been in recent years and how the search for an industry-wide solution has so far been unsuccessful. How many times have those involved, farmers and processors alike, looked to the example of Fonterra and what can be achieved when there’s a willingness to go forward together?

Beef + Lamb New Zealand deserves to be delighted the vote to continue its farmer levy was overwhelmingly supportive. Farmers could have easily seen this spending as one area that could be trimmed along with a lot of other previously sacrosanct onfarm items. 

More than 84% of sheep and beef farmers voted, on a one-farmer, one-vote basis, in favour of the levies. Participation was similar to levels in 2009 when the vote in favour just squeaked by.

This time B+LNZ took nothing for granted and put up a good case for its activities enhancing future profitability of the sector. There was obviously a lot of learning from the failed wool levy vote of six years ago. Woolgrowers were used to the idea that through a long pipeline to the market there were many competing players who all argued that their role was most important. A cold turkey solution when it came to them funding activities from which they didn’t see the benefit had a lot of appeal.

Dairy farmers this season will likely pay more B+LNZ levies because they’re culling more cows to make sure every cow they milk is a good one. More will be looking to various calf rearing options where this levy will be paid somewhere down the line, for this and possibly several future seasons.

No one should begrudge B+LNZ its success, apart from those farmers who cast a no vote and those who philosophically oppose any remnant of a producer board.

This has to bode well for DairyNZ, which has been active in mobilising its resources to get alongside levy-paying farmers while at the same time bolstering their businesses. Well-attended field days showcasing local farmers who are running lean operations have been particularly popular. 

Even if the messages can’t be applied onfarm immediately, there’s huge value in gathering farmers together. They’ve been able to talk with others about their situations, find out how others are doing and just take a break from having their heads down at the back of the farm.

With DairyNZ director elections underway farmers will be able to scrutinise what their industry body is doing for them and what they want it to do in the future. They can be excused for not looking beyond how they are going to get through this season. But chief executive Dr Tim Mackle has said even a modest reduction in its current levy could have a negative impact on some of its investments.

Its current focus is on priorities such as increasing global competitiveness, water quality, lifting onfarm performance and maintaining biosecurity services.

It’s the fifth challenge that is perhaps the most vital, as well as most controversial – engaging with the NZ public and key decision-makers to gain support and understanding for our farming sector.

Some dairy farmers will say this is the most important item, particularly if they farm in areas close to major cities or under specific threat such as reducing nitrate leaching levels or irrigation takes. They will argue that creeping regional council controls could mean without the type of lobbying and representation DairyNZ is able to offer none of their counterparts will be immune to this type of regulation. All will need a license to farm, they say.

On the other hand, Federated Farmers’ members may point to what that organisation has done and is continuing to do to press the case of farmers no matter which sector they’re from and in what area they farm. Some will argue a doubling up of scarce resources and effort is wasteful. Others will say every voice is a valuable one and point to recent council efforts to hear from their rural residents in a more formal way. 

The present election of DairyNZ directors gives all dairy farmers, no matter what their view, the chance to vote for those who will best represent them.

Because without effective representation, the dairy industry, along with agriculture as a whole, has no way of convincing those in power of what farmers really think.

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