
Dr. Jacqueline Rowarth unpacks how soaring global dairy sales, not local prices, are key to New Zealand’s economic prosperity.
Dr. Jacqueline Rowarth, an esteemed Adjunct Professor at Lincoln University and director of DairyNZ, delivers a compelling defense of New Zealand’s dairy exports, emphasizing their indispensable role in the nation’s economic vitality. Her opinion piece directly addresses domestic concerns over rising butter prices, shifting the focus to the substantial benefits reaped from selling dairy products at peak global value. For the international dairy community, this perspective highlights the intricate relationship between a country’s export strategy and its overall economic health.
The central tenet of Dr. Rowarth’s argument is clear: maximizing the price of New Zealand’s dairy produce on the international market is paramount for the country’s economic well-being. She asserts that every dollar generated from dairy exports creates a remarkable multiplier effect, generating over seven times its value domestically and boosting employment by more than eight Full Time Equivalent positions. This powerful economic ripple effect underscores the sector’s profound contribution to national prosperity.
Quantifying this impact, the article reveals that New Zealand’s $27 billion in dairy export dollars translates into a substantial benefit for every single New Zealander. This direct financial injection significantly aids the government in achieving its ambitious goal of doubling export value, thereby securing vital funding for essential public services like healthcare, education, and critical infrastructure development. This positions milk production as a cornerstone of the nation’s fiscal strength.
Dr. Rowarth also addresses the intricacies of pricing, explaining that price fluctuations occur when supply outstrips demand, but stresses there is currently no glut in dairy products as global demand remains robust. She touches upon the complexities of supermarket pricing dynamics and the impact of Goods and Services Tax (GST). Crucially, she highlights that, unlike farmers in many other countries, New Zealand dairy farmers operate without government subsidies, making their export success even more remarkable and a pure reflection of market demand.
In conclusion, the article firmly positions New Zealand’s dairy farmers as the bedrock of the national economy. Their unwavering success in generating substantial export income through efficient agribusiness practices directly benefits all New Zealanders, providing the financial impetus needed to sustain and enhance the country’s social fabric and economic future.
Source: NZ Herald: Dairy exports vital for NZ economy despite butter price concerns – Dr Jacqueline Rowarth
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