Hope emerges from Fieldays

The economic downturn in dairying is New Zealand’s best chance for a farming revolution.

Our ‘Tried and True’ dairy at the 2009 Fieldays worked a treat. We were able to communicate directly with the farming and rural sector about how Fonterra’s business strategy is contributing directly to the current economic, environmental and social demise of dairy farming – big issues that threaten to overwhelm New Zealand.

The situation was well summarised in the editorial in our “Better Times” newspaper, produced for Fieldays – ‘The Perfect Storm Threatens NZ Farming,’ Simply, the headlong rush by Fonterra into milk powder commodity markets has forced farmers down an intensification path, which is creating a huge rise in greenhouse gases and having negative impacts on New Zealand’s waterways.

At the same time this intensification has eroded farmers’ profits by increasing the costs of all the chemical fertilisers and supplemental feed needed for intensive farming. This is known as the ‘treadmill effect’ whereby ongoing pressures to increase production, combined with downward pressures on price, contribute to the sensation of ‘running to  stand still.’ This is a core driving force behind the intensification of NZ farming systems and subsequent rise in environmental impacts.

Dairy farmers are facing scary times. The Fonterra commodity bubble of last year has burst and now threatens the survival of a number of farms. A significant number of dairy farmers who we talked to were angry at Fonterra’s total commitment to the commodities market at the expense of value added finished products such as cheese, butter, yoghurt, etc.  This takes away a good income for farmer’s hard work – commodity markets are about a ‘race to the bottom’ on price with other countries also producing milk powder.

Despite this potentially depressing situation, a hopeful theme emerged at the event. Many farmers, scientists, commentators, and government officials agreed that just as the worldwide economic crash was an opportunity to reconfigure our economies to low-carbon ones, the ‘dairy crash’ was an opportunity for NZ to start a farming revolution. This could provide solutions for sustainable farming with reduced greenhouse gas emissions and better returns for farmers – a true ‘win-win’ that would strengthen NZ’s clean and green brand.

Smart farming (www.greenpeace.org.nz/smartfarming) is about low inputs of chemical nitrogen fertilisers (ideally down to zero) and supplemental feed and not stuffing huge numbers of cows into every hectare. Given that dairy farmers are struggling to pay for all these expensive inputs, reductions are already being made. Some farmers said economics had forced them to reduce their use of chemical fertilisers.  As their farms had not fallen over, they now realised Fonterra and the rest of NZ agri-business had been getting them to use chemical nitrogen fertilisers that were actually not needed to maintain production.

Government must now follow through and put in place policies for smart farming methods to keep farmers from going back to the previous bad practices of intensive farming. This will help protect farmers’ incomes and reduce greenhouse gas emissions and water impacts. The question is whether the Government will act and seize this opportunity for a farming revolution in NZ.

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1 comment:

  1. Karl Barkley, 18. August 2009, 22:37

    3NEWS/ 60 Minutes Programme 17 Aug 2009

    GR8 Programme 100% Pure , Well I wish it was and it’s GR8 to see that the Media is finally Looking in to our Problem’s . What’s happening to our Soil’s and Water Ways are More Important to NZ as a Whole than Global Warming & Carbon Credits .
    I’ve been fighting for years now for Mother Nature and her Little helpers, the Earth Worm’s yes the Humble Earth Worm , working away under our feet in the Soil of our Gardens and More Importantly in our vast Agriculture Pastures, the most Important and over Looked Part of the debate over our Rivers and Water Quality. Is the Earth Worm’s – Microbes & Bacteria all in Balance working together in our Soils to make them healthy . If these are not there or they are all out of Balance because of all the Poison’s that are getting Poring onto our Farms .Then we can’t expect the water that is running off or through the Soils to be Healthy to Swim in or Drink !
    We All Need Water
    Grant Lyon has some good points and I will add some more shortly . But I have a Big concern recently I presented a Submission to the Draft plan for Environment Southland , Councils Community Plan 2009 – 2019 . I asked for an independent study to be carried out into the use of (Urea) Nitrogen & Super Phosphate being used on our Intensified farms in Southland . As I am concerned at what harm they are coursing to our Pastures and Water Ways which flows onto Human and Stock Health?
    I‘ve got a reply which concerns me even more, as the Council who are supposed to be our Environment Council. Tell me that they considered my request but Declined it saying that this was outside the Councils Jurisdiction , especially with the financial constraints that Council is facing . Finance is got nothing to do with it, it’s about our Environment and what’s being done to it which is going to effect us all as we have to Drink Water to Survive .

    More to follow !

     

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