Thursday, May 2, 2024

Dairy farmers should hold fire

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Dairy farmers should hold their fire against New Zealand First in retaliation for criticism of Fonterra and its chairman John Wilson, Federated Farmers dairy chairman Chris Lewis counsels.
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NZ First has made some good calls recently on the 90-day trial period for new employees and the three-strikes rule in the criminal justice system, he said.

Its input and support might be needed throughout the review of the Dairy Industry Restructuring Act to ensure Fonterra can be the dairy market leader in 20 years.

Federated Farmers will make a comprehensive submission on the DIRA along with many other stakeholders and the eventual decisions will go through a select committee and the Cabinet.

As a partner in the coalition Government NZ First will have a major influence, Lewis suggested.

“I would encourage farmers to look at the bigger picture before they fire broadsides back.

“I don’t want to put the boot in until we have a real opportunity to influence all three parties in the coalition,” he said.

Fonterra has its failings, some of which NZ First leader and Acting Prime Minister Winston Peters and his fellow Cabinet Minister Shane Jones had pointed out.

“We all make mistakes, even down on our farms.”

Federated Farmers has regular opportunities to raise its concerns directly and privately with Fonterra’s board and its Shareholders’ Council.

Council chairman Duncan Coull took a similar line, saying he looks forward to constructive dialogue with NZ First MPs, such as primary industries spokesman Mark Patterson.

“Shareholders are a little frustrated at what they deem are loose comments from politicians but we want to work constructively with the Government and the opportunity to do that will be at the upcoming DIRA review.”

Forestry Minister Jones sparked the controversy by calling for Wilson to resign over the co-operative’s financial performance.

Peters later said NZ First believes in commercial accountability and it has been commenting on poor performance by Fonterra for some time.

He also totted up the cost of commercial and biosecurity failures at nearly $1.4 billion, including Beingmate and Danone losses, and related costs by government agencies.

Peters made reference to the DIRA review by the Ministry for Primary Industries and its possible outcomes.

Lewis and Coull clearly got the message.

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