14 November 2000 PR124/2000
DFNZ Report To FFNZ National Council
Dairy Farmers of New Zealand Chairman Charlie Pedersen told Federated Farmers National Council meeting today that dairy
industry restructuring remains the stand-out issue for dairy farmers.
"A motoring analogy of our industry structure is an HQ Holden going 100 miles per hour on a country road," he commented.
"The HQ was culturally and mechanically appropriate in 1972, but it is a crash waiting to happen in 2000," Mr Pedersen
added.
"Farmers and their increasing milkflow are testing the HQ's 3-speed gearbox and only the Dairy Board's wheels seem to be
coping, albeit while travelling in a straight line."
"There remains three options for restructuring the industry: embracing the status quo and putting NZDB shares in the
hands of farmers - the rightful owners; forming a single manufacturing and marketing company with deregulation; and
splitting the NZDB between the co-ops - the most unpopular option for farmers - so that they could manufacture and
market their own product overseas."
"Whatever option the industry takes, the interests of dairy farmers, the ultimate owners, must remain paramount, and
they must have the final decision of where their industry goes."
"DFNZ has resolved, after consultation with the Minister of Agriculture and his officials, to use professional
consultants to survey dairy farmers once a structural option is proposed, so as to provide evidence for the Government
as to farmers' preferred option."
ENDS For further comment Charlie Pedersen 025-463-480