Wednesday, March 20, 2024

Farmers want DIRA gone

Avatar photo
Farmers delivered a consistent message to the Ministry for Primary Industries when they met in Ashburton to consult on the Dairy Industry Restructuring Act review.
Reading Time: 3 minutes

“We are a bit over it, and that’s an understatement,” Mid Canterbury dairying stalwart Ted Rollinson said.

His sentiment was largely echoed by all farmers at the meeting that unanimously agreed it’s time for open entry and exit to go, followed by raw milk regulations and access to regulated milk for Goodman Fielder.

Farmers were generally in favour of retaining the milk price setting mechanism of DIRA, being the base milk price calculation.

MPI’s DIRA review team manager Annie Hindle made it clear to farmers she wanted to hear their views on the 17-year-old DIRA Act of 2001.

“MPI and government understand the contribution the dairy industry makes to this country but there is impact on the environment, being one of the downstream consequences of the massive growth in dairying in the past 17 years.

“So we are here to get your views,” she told farmers.

In November MPI released a discussion paper on the options that are being considered as part of its review of DIRA.

Until this point in the DIRA review the Government has been identifying and analysing the issues, meeting with industry stakeholders, including Fonterra and the shareholders council, and identifying options.

The release of the discussion paper is the opportunity for farmers to have their say.

“The Government is now asking everyone with an interest in the dairy industry to join the conversation about the issues and options they’ve outlined.”

Hindle put the questions in four platforms starting with open entry and exit which clearly sparked the greatest discussion.

Regulations controlling the supply of raw milk also created rigorous debate.

While DIRA gives farmers the freedom to choose, Fonterra should not be used as a safety net leaving the loyal shareholder-suppliers propping it up, farmers said.

DIRA gave security but some people are just thinking profit, can we leave them out, or should there be a stand-down time so they are not profiteering the organisation, farmers questioned.

It was argued that open entry ensured security in pick up, take that away in isolated areas and there may be some pressure.

“Because Fonterra is a co-operative it should not be a risk for farmers in areas where there is no choice – the co-op looks after everyone equally,” was one farmer’s comment.

Another suggested “it is time for the co-op to grow up and make the tough business decisions”.

“People are not committing at the moment and we need that commitment to change the whole Fonterra business model.”

On the raw milk regulations farmers said “it’s a nonsense that we give milk then they go on the open market and they are our competition”.

Farmers cited foreign dairy company ownership as “killing it”.

“If they want milk to start up then they go and find it. This (DIRA regulated milk) was done in the first place for the domestic market.

“Are we trying to create Fonterra to save the world,” Rollinson questioned.

“Change the rules so milk can only be used for enhancing the domestic market for the public of New Zealand,” he said.

“I’m hearing from farmers loud and clear that farmers are tired of the raw milk regulation and don’t want to supply any company that is competing against us,” Hindle told farmers.

“We will take this back to government,” she said.

As for access to regulated milk for Goodman Fielder – farmers are dead against.

“If Goodman Fielder is lazy enough to exist for this period of time without putting a back-up plan in place then out they go, someone else will fill the gap,” Mt Somers Station farmer David Acland said.

“Goodman Fielder have been too bloody greedy, dairy farmers are like being Santa Claus, we can’t keep giving people piggy backs,” Rollinson said.

In summary of the Ashburton consultation meeting, the seventh in the round of meetings being held around the country, Hindle said she will be taking back to the Government and the Minister that farmers feel quite strongly – “it’s time (for DIRA) to go”.

She told farmers the only thing that threatens Fonterra’s size in the future is the choices that farmers make regarding supply. 

“And that’s not something government would want to regulate.”

Hindle urged farmers to engage in the submission process.

“The written word tends to be more powerful,” she said.

Submission close on February 8, MPI anticipates having its recommendations to government in April-May next year with regulation in the House in June with new legislation drafted by late 2019 to pass into law early 2020.

For more information www.mpi.govt.nz/dira-review

Total
0
Shares
People are also reading