tvnz.co.nz
Return of US dairy subsidies sours Kiwis
May 25 2009 - Dairy farmers may once have been milking it financially but that golden run appears to be coming to an end.
The US is reintroducing dairy export subsidies for over 90,000 tonnes of products, including milk powder, butter and cheese.
"If President Obama wants to make his dairy farmers welfare beneficiaries he should pay them a welfare benefit not pay the price on the actual product," says Philip York from Federated Farmers.
The European Union brought back subsidies in January. Now the US is following suit. [..]
>> For example, Fonterra sells its milk solids for about $2,000 a tonne. US dairy companies say their overheads are too high and it costs them an extra $500 to produce the same amount. So the US government is giving them a hand out so they can match the competition.
Read full article [http://tvnz.co.nz/business-news/return-us-dairy-subsidies-sours-kiwis-2755476]
Xinhua
New Zealand disappointed at U.S. export subsidies on dairy products
WELLINGTON, May 25 (Xinhua) -- New Zealand Prime Minister John Key on Monday expressed disappointment at the United States' decision to reintroduce export subsidies on dairy products.
"It's a very disappointing move and its unhelpful because frankly it runs the risk now it sets off even further subsidies from Europe," Key told Radio NewstalkZB.
The U.S. move followed the European Union's (EU) reintroduction of export subsidies in January.
"It's a very unhelpful move and it really runs a bit against the statements the Americans made that they didn't want protectionism," he added.
Read full article [http://news.xinhuanet.com/english/2009-05/25/content_11429821.htm]
The National Business Review
US dairy export subsidy puts NZ agriculture sector on edge
The US governement's announcement on export subsidies puts the entire agriculture sector on edge because it could send a wrong signal to other countries.
On Friday, the US Agriculture Secretary announced allocations under USDA’s dairy export incentive program designed to help US dairy exporters meet prevailing world prices and encourage the development of international export markets in areas where US are not competitive.
The US move was essentially in retaliation to the EU which reinstated its export subsidy system in January.
But it still came as a surprise to many, including Prime Minister John Key who is reported to have discussed trade with US President Barack Obama during their recent phone call and in which he had highlighted concerns about protectionism
Read full article [http://www.nbr.co.nz/article/us-dairy-export-subsidy-puts-nz-agriculture-sector-edge-102816]
FoodBizIntel®
Fonterra Co-operative Group Limited
Address: Fonterra Centre 9 Princes Street Auckland, AUC New Zealand
Telephone: +64-9-3749000
Fax: +64-9-3798284
Email : n/a
About Fonterra Co-operative Group Limited
Fonterra Co-operative Group Limited is engaged in the collection, manufacture and sale of milk and milk derived products. It has four reportable segments. Its commodities and ingredients segment includes New Zealand milk supply, New Zealand manufacturing, sales and operations planning, global trade, global supply chain, Fonterra ingredients and specialty ingredients operations in North Asia, North America and Europe (including equity accounted investments), and corporate. Its ANZ segment represents operations in New Zealand (other than those included in commodities and ingredients) and Australia (including milk supply and manufacturing). The Asia/AME segment represents operations and equity accounted investments in Asia (excluding North Asia), Africa and the Middle East. The Company’s Latam segment represents operations and equity accounted investments in South America.
FoodBizIntel®
Federated Farmers of New Zealand
Address: Federated Farmers, PO Box 447, Waikato Mail Centre, Hamilton 3240 New Zealand
Telephone: 04 473 7269
Fax: 04 473 1081
About Federated Farmers of New Zealand
What is Federated Farmers?
New Zealand's leading rural sector organisation, Federated Farmers represents farmers and rural families around the country.
Provinces
A network of 24 provinces, together with associated area networks or branches, provides a locally based, democratic organisation that gives farmers a collective voice nationally and within each province.
Industry Groups
With seven industry groups representing the specific interests of meat and fibre, dairy, goats, rural butchers, beekeepers, high country, and grain and seed farmers, the Federation covers a broad spectrum of the rural community.
Each industry group represents the interests of that particular sector, and is supported by policy and administration staff.
Governance
The Federation is governed by a National Board and a National Council. The National Board meets six times a year and comprises of a president, vice-president, two board members and three industry group chairs. The National Council includes the National Board and representatives from each of the 24 provinces and meets twice a year.
Offices
The Head Office in Wellington provides a centre for policy development, advocacy, lobbying and advisory services. The main administration centre is based in Hamilton. There are also offices in Auckland, Tauranga, New Plymouth, Palmerston North, Nelson, Christchurch, Ashburton, Timaru, Dunedin and Invercargill.
Policy
Policy is member driven. Member views are canvassed by staff and elected representatives, who formulate submissions that help local and central government decision-making.
Accountability
As a voluntary, member-funded organisation, Federated Farmers is accountable to its farmer members.