Tuesday, April 16, 2024

Farmers can sail safely to harbour

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Dairy farmers got another boost last week with Fonterra adding 25c to its forecast milk price. This season’s payout is set to be the fourth-largest on record. Red meat prices are also astonishingly good. Lambs are getting $9/kg and beef returns are great as well.
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Usually, that would boost farmer confidence but that’s not the case. Farmers are feeling the pressure despite the good returns. Government policy in the form of greenhouse gas and freshwater legislation is either here or on its way. Banks are looking hard at how they engage with farmers and what their appetite will be for debt. The man or woman in the street has an opinion on the primary sector and is not afraid to tell their Facebook friends exactly what they think. These are challenges. 

But rather than throwing their hands up in the air good farmers are taking stock, calmly eyeing up the opportunities and putting plans in place. Freshwater reforms and climate change adaptations are not things that can be argued against. They are happening. Good farmers will see how they can use them to pivot their businesses towards profitability.

Innovation means constantly making small changes to improve. When the wind changes sailors adjust the sails to ensure they keep their speed. So it is with farming. A headwind is a problem only if you insist on travelling into it.  The rate of change is increasing, no doubt. But farmers are not alone in facing the future and they have the advantage of being integral to life itself.  If our industry unerstands its values, knows what type of food it wants to produce and what standing it wants to hold both in New Zealand and across the globe it can adjust its horizon and safely sail to port.

Bryan Gibson

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