A better year for farmers predicted

Press, 22 January 1988, Page 9

A better year for farmers predicted

By

OLIVER RIDDELL

in Wellington A marked improvement for most pastoral farmers in 1988 has been predicted by the Minister of Agriculture and Fisheries, Mr Moyle. He said 1987 had been better than 1986, and 1988 would be better still. The fall in the inflation rate would mean a substantial decline in interest rates for farm mortgages and seasonal finance, and not before time. Mr Moyle hoped the lending institutions would play their part in restoring viability to as many farms as possible, in the national interest, and the country had to give abso-, lute priority to getting economic farm production back into gear. “I am not predicting a farming boom in 1988 or anything like it,” he said, “but there will be a marked improvement for most pastoral farmers.” This would not just show up in the statistics but would be noticeable down on the farm too. The price of change was quickening, both here and overseas, Mr Moyle said. The movement for

reform of agricultural protectionism was gaining momentum faster than anyone had expected.

There had been massive cutbacks in surplus milk production both in the European countries and in the United States. New Zealand was no longer over-producing meat and milk for disposal at bargain-basement prices. Prospects for New Zealand’s main products — meat, milk and wool — were all looking better, he said.

Reducing inflation and interest rates would all force down the New Zealand dollar, which had been relatively .high for the comfort of farmers. But continuing access to the British butter market was of serious concern, Mr Moyle said. Against a background of E.C. decisions to cut production and to impose restraints on support prices, New Zealand could expect strong opposition from E.C. dairying interests. No-one should be in any doubt that New Zealand had a struggle on its hands when the E.C. Ministers discussed this

later this year, he said. The Government, Dairy Board and Federated Farmers would be fighting to keep the highest level of access for as long as possible. Meat marketing was also of concern, Mr Moyle said. Although the world situation was more in sellers’ (and thus New Zealand’s) favour, five weeks in Europe had convinced him that New Zealand was not getting the best deals possible for its producers. “In spite of their assurances, I have found the actions of some of our exporters to be unacceptable,” he said. Company managers here needed to get together to ensure that their overseas agents were not working against the best interests of the New Zealand producer. The meat industry was self-governing, Mr Moyle said. If it wanted to retain that right, it had to provide clear evidence that it was working in the interests of the producer and country, and not just concerning itself with inter-company rivalries.