Economists Are ‘Utterly Tone-Deaf’ to the Public’s Outrage Over High Butter Prices, Highlighting a Flawed Export-First Strategy.
A new article from The Daily Blog argues that economists are completely out of touch with the public’s outrage over the high price of butter in New Zealand. The author, Martyn Bradbury, contends that while economists may see high prices as a sign of a successful export-driven agribusiness model, ordinary New Zealanders are upset about competing with global markets for a product made in their own country. The public feels they are paying an environmental price for the product while also facing an exorbitant cost at the supermarket.
The core of the issue, according to the article, is that New Zealand’s food system is in a state of “disarray.” The piece references a leading scientist, Professor Alan Renwick, who asserts that the country lacks resilience and urgently needs a national food strategy. This strategy would focus on improving food access and affordability for the domestic population, ensuring that citizens are not penalized by the country’s export-focused policies.
The author proposes a bold solution to address the problem. He suggests that food produced by New Zealand farmers and producers should be subsidized for domestic consumption. This policy would offer a 15% price reduction for local consumers, providing a critical buffer against high global prices. Such a measure would not only increase food security but also provide a greater level of certainty for the country’s producers.
The article critiques the corporate entities that prioritize exports over the needs of the domestic population. It questions the logic of a system where citizens of a major dairy producer are forced to pay premium prices for a staple product. This disconnect, the author argues, is a symptom of a broader problem where profits are prioritized over the well-being and food security of the nation.
For the international dairy community, this case is a powerful example of the potential pitfalls of an unbalanced trade policy. It highlights the social and political friction that can arise when a country’s dairy economics model prioritizes foreign markets over its own people. The proposed solutions and public sentiment in New Zealand provide a valuable case study in navigating the complexities of a globally-integrated food system.
Source: The Daily Blog, “Economists utterly tone deaf to outrage over butter”
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