Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: miraje who wrote (99437)	2/9/2005 2:31:37 PM
From: Volsi Mimir	Read Replies (1) \| Respond to of 793769

New Zealand farming without subs: has this changed?(written in 2000) Farming in NZ was spurred by the needs of a fixed overseas market of 40 million people: Great Britain. NZ almost became an extension of the British economy, 'Britain's offshore farm'. With a per capita Gross Domestic Product (GDP) only exceeded by Switzerland, NZ enjoyed high prosperity until the early 1970s. But England's entry into the European Economic Community, closed that market and NZ had to find other destinations for its farming produce. The changeover depressed incomes and exposed the nation to the fluctuations of world markets, perhaps like no other nation, for the world grows far more food locally, than is traded internationally. It would be fair to say that world trade consists mainly of excess food in good years, which depresses demand and with it, prices. It suggests that the world has enough meat, hides and butter. Successive governments have encouraged other sectors of the economy to develop, often to the detriment of the agricultural base. NZ's recent globalisation since 1984, removed farm subsidies and has driven many exporters overseas or to wind up, resulting in a worrying current account deficit of 30-40% of export income, and rising steeply. The past 15 years has seen an economic growth based on foreign investment to the tune of NZ$ 100M, or 110% of GDP, requiring interest and dividend payments exceeding NZ$ 7700M. GDP per capita is now close to the lowest of the developed countries. NZ cattle and sheep numbers declined by 24%. Since 1984, NZ has unilaterally removed its support to farmers. Government assistance to farmers is very low by international standards. NZ farmers have the OECD's lowest producer support rates. The producer support rate in Australia is 3x greater, in the USA 5x, and many times greater in the EU, Norway, Switzerland and Japan. In order for a dairy farmer to remain economic, he must milk over 230 cows twice daily. A sheep farmer has 2000-3000 sheep. A beef farmer has over 500 steers. Nothing can change the fact that NZ remains eminently suitable for producing exports from solar inputs. As the table above shows, over half of its export income comes from agriculture and fisheries, a sound sustainable base which earns little in a world awash with food, but perhaps more in the future world of scarcity. The diagram below gives a breakdown of NZ's agricultural base today, compared with 30 years ago. Dairy production increased while that of sheep and cattle decreased. NZ has about 45 million sheep and 8 million cattle (of which 4.6M beef cattle). more--- plus charts: and alot on environmental inefficiencies. seafriends.org.nz =============================== Plus nice knowing New Zealand uses 4 pesticides that is outlawed in the US. (that same site you used).Maybe they are smarter than us but as long as EU subs as well other areas (Japan) the US has little choice in the global arena- like I said put a cap on it and outlay to more crops than what politicians have in thier pocket or the other way around.(many good stories and columns about that)(how about that NORTHEAST MILK BOARD!) I have been looking for more history on the transition as the article notes: "Although the transition to an unsubsidized farm economy wasn’t easy, memories of the adjustment period are fading fast and today there are few critics to be found of the country’s bold move." Please help in finding that, thanks.