MANAGEMENT
MACHINERY & PRODUCTS
AGRIBUSINESS
Eyes open to different ways of farm ownership. PAGE 20
Former All Black backs downto-earth rural internet provider.
NZ Agritech to get a Government push PAGE 13
PAGE 23
TO ALL FARMERS, FOR ALL FARMERS MAY 19, 2020: ISSUE 701
www.ruralnews.co.nz
Ag’s big break SUDESH KISSUN sudeshk@ruralnews.co.nz
FORMER FONTERRA chairman Sir Henry van der Heyden is predicting “a big shift” in New Zealand agriculture in a post COVID-19 world. He believes the sector will have a wonderful opportunity to reset itself. Speaking last week on a webinar, organised by the Rural Support Trust, the Waikato agribusiness leader noted that agriculture has always been the backbone of the economy. “We have been the driving the economy; the economy cannot do without us,” he says. “I think that’s lost and a little forgotten over the last five to ten years. “Post COVID-19 will provide a wonderful opportunity to come to the fore again.” However, he warned farmers there will be challenges from a looming global recession, which will result in
high unemployment and a drop in income. This will cause realignment in global demand and supply of milk. Van der Heyden says no one is sure how things will play out in the next 12 months. “We are in a period of uncertainty: no one actually knows what’s going to happen going forward.” Commenting on the forecast milk price for 2020-21, van der Heyden noted some banks were predicting between $5.60 and $5.75/kgMS.
Van der Heyden, who is chairman of Rabobank Australia, says those numbers “feel conservative”. “I’m still hoping we will have a six in front of the payout.” His message to farmers is to budget conservatively. “I feel this is a time for many of us to be conservative.” While uncertain about the next 12 months, van der Heyden says he remains positive about dairying. “I think we are going into a reces-
sion. There will be high unemployment and incomes will be down, but fundamentals of food will come to the fore. “Milk price will depend [on] the fundamentals of supply and demand.” He also urged farmers to maintain a strong relationship with their bankers. “Banks don’t like surprises: stay close to your budgets and keep the banks informed”. Van der Heyden served as Fonterra chairman between 2002 and 2012. He has farming interests in NZ and Chile.
Bloody dry! Farmers in Hawkes Bay are facing a desperate situation with no relief in sight from the disastrous drought gripping the region. Scenes like this on the farm of Hawkes Bay Federated Farmer president Jim Galloway illustrate what many farmers in Hawkes Bay are facing. For many farmers there, it is the worst drought they have experienced and possibly the region’s worst in living memory. – See full story pages 6-7.
JUST PLAIN DUMB PETER BURKE peterb@ruralnews.co.nz
POLITICIANS WHO advocate that New Zealand should adopt any form of protectionist trade policies have been labelled “stupid” by the chair of the Dairy Companies Association of NZ (DCANZ). Malcolm Bailey is concerned about some of the remarks by certain politicians, whom he says have been quoted as thinking along these lines. Bailey says at some stage Covid-19 will transition from being a health problem to an economic problem and any rise in protectionism will be bad for NZ. Bailey says putting up the shutters in terms of trade barriers would be bad for everyone. He points to the example of Singapore, with whom NZ has an excellent trading relationship. He says under a protectionist regime that country would virtually starve to death because they are not a food producer and in turn New Zealanders would be deprived of quality, cost effective consumer products. “Anyone advocating protectionist policies is just plain dumb,” he says. Bailey believes the market for dairy products has held up pretty well so far, but acknowledges that there have been challenges in terms of getting product to market. However, he says people have found innovative and pragmatic ways of sorting these out.
THUMBS UP TO OUR FARMERS AND GROWERS. WE’RE WORKING THROUGH THIS TOGETHER.
Your local FMG team is still working to help you with everything you need – from offering advice, to updating policies or making claims. And if things are a bit tough right now, we’re here to help out there too. To find out how, call us on 0800 366 466 or go to fmg.co.nz/covid19-information. FMG1106RNFPS_T
We’re here for the good of the country.