Thank you for the opportunity to launch your new Strategy for New Zealand Dairy Farming.

Let me acknowledge all those who have gathered from around the country, industry leaders, regional councillors, representatives from DairyNZ, Federated Farmers and other distinguished guests.

Some weeks ago when I was asked to attend this event I accepted with great pleasure. That’s because I view agriculture, and within that the dairy industry, as a driving part of New Zealand’s economic engine. 

Farming has always been, and will continue to be, vital to New Zealand’s prosperity.

When things are going well on our farms, this flows through into the small towns, the provincial cities and ultimately into our big cities. Conversely, when the primary sector sneezes the New Zealand economy catches a cold.

So the planning you are doing now is important not only for the dairy farmers you represent but for the economic future of all New Zealanders. And in these troubled times I’m pleased to be celebrating an industry for which I believe the future can be very bright. 

Because the opportunities for New Zealand farming in the next decade are massive. 

We are seeing the rise of a large middle class in China and India, with growing appetites for high-quality food products.

New Zealand’s natural attributes, our temperate climate, our quality land, our relatively abundant water supply, combined with the world-class expertise and know-how of our farmers, mean our agricultural sector is well-placed to meet this demand.

So I believe New Zealand’s agricultural sector can play a critical role in improving the productivity, export and growth levels of the economy as a whole. 

But with the opportunity comes challenges.

New Zealand is not the only country who is willing to compete to fill the fridges and pantries of tomorrow’s families.

Other countries, particularly in South America and in parts of Asia, are increasing their agricultural production and positioning themselves to compete with us for old and new markets.

What’s more, after several years of expansion and intensification, New Zealand farmers have to contend with pressures on the resources they rely on – land, water and even skilled workers.

And all of this is happening in the context of a world in which consumers are increasingly aware of carbon footprints, climate change and environmental performance.

So if New Zealand is to meet these challenges, we need to play to our strengths.

We need to harness the experience born of generations of farmers, we need to make the most of our cutting-edge technology and know-how, and we need to protect our environmental credentials. All of these factors will play a part in differentiating New Zealand farm products and ensuring maximum prices for your products.

The question of course, is how this is best achieved. 

While the Government has a role to play in answering that question, ultimately it is you, the farmers on the frontline, who are best-placed to act. 

So I commend this strategy as an important step in bringing key dairy organisations together to chart a course towards meeting tomorrow’s challenges and maximising tomorrow’s opportunities.

I understand this strategy has been developed after more than 14 months of discussions with dairy farmers throughout the country. It lays out a direction for the industry for the next decade and sets some key goals, including:

increasing on-farm profitability

achieving a strong industry-Government partnership

ensuring an internationally competitive milk supply

enhancing the industry’s reputation locally and globally

and attracting talented, skilled people into the industry

These are worthy goals and the Government shares your commitment to them. 

I also want to take this opportunity today to say just how crucial a role good environmental management will play in achieving each of these goals. 

It is important that farmers step-up and take leadership on meeting some of the environmental challenges that will shape the future of your industry.

These challenges include protecting the quality of fresh water resources, responding to global climate change, and ensuring today’s natural farming resources are kept in good condition for the farmers of the future. 

Improving your environmental performance shouldn’t just be seen as an issue of compliance with central and local government priorities. Rather it should be seen as an integral part of your future business success.

Not only do you need to protect your good environmental brand abroad, you also need to keep faith with the New Zealand public who look to you as important custodians of the natural environment for this and future generations.

My experience in talking to farmers throughout the country is that the vast majority understand this, and they act accordingly. After all, Kiwi farmers have as much of a vested interest in clean waterways, erosion prevention, and carbon ‘miles’ as anyone else. 

The Dairying and Clean Streams Accord is a good example of the kind of voluntary industry-led environmental management that farmers are capable of. 

As we look ahead, wherever possible I would much prefer farmers to ‘own’ their responses to environmental issues and to work proactively to deal with them in accordance with their local circumstances. 

In short, as you plan for the future the New Zealand dairy industry needs to take responsibility as guardians of the environment on which your wellbeing and that of your fellow Kiwis depends. This will be critical to the success of the strategy being launched today.

You can be assured that the Government wants to work with you to meet the challenges that you face, including protecting water quality, removing barriers to free trade, and supporting your efforts to reduce the carbon ‘footprint’ of your products.

We look forward to making progress together. 

I understand that the industry now plans to go away and work together to determine the action plan for your strategy, including which organisations are responsible for delivering results.

I wish you well for this process. 

In closing let me re-state that the Government is right behind you as you chart a course for the future. 

We value the contribution that dairy farming makes to New Zealand’s economy and we are supportive of your efforts to grow your productivity. 

In turn we are committed to doing what we can to assist you, by, for example, working to remove barriers to free trade, supporting primary sector research and development, reducing unnecessary red tape, developing critical infrastructure, and supporting rural communities.

We look forward to taking these and other steps to support you. And we look forward to working with you to achieve your goals.

We value the work you do, we want to see you do well and we wish you all the best as you put your strategy into action.

Thankyou.