It seems fashionable at present to be alarmist and critical of our government and long-standing institutions.
It’s easy to find fault as nothing is perfect and creating drama ensures readership however there is much in this country that should be treasured and protected.
Appreciating our history is the only way of understanding who we are and how we came to this point.
I grew up in a dairy farming district where every cowshed had a separator and cream was carted to the road gate in cans with the skim fed to pigs.
There were local blacksmiths capable of fashioning and fitting horseshoes as well as fixing farm equipment.
That may seem irrelevant today however it was the start of the era when New Zealand farmers became known, rightfully so, as the best in the world.
We knew the modest home where Bill Gallagher, the inventor of the first electric fence unit, walked to his workshop from each day.
Fierce determination to move on from post-war austerity drove low cost innovation.
The scientists and support staff of the internationally recognised Ruakura Research Station on the outskirt of Hamilton were held in high esteem.
Farming was acknowledged as the primary income earner and in the Waikato district dairy production dominated.
Bulk butter and large round cheeses were sold to the United Kingdom and there was an annual show to provide the locals with an insight into the industry.
Fast forward to today and recent sale of Fonterra’s brands. Branding has long been recognised as the means to increasing not just sales but also profit.
People buy products they like and trust and branding provides instant recognition. Anchor butter comes in the same size and wrapper as it always has and the quality remains consistent.
This allows an increase in margin and ultimately a better return to the farmer. Brand establishment takes time and discipline and once destroyed it cannot be easily replaced.
The immediate benefit to Fonterra shareholders is a large lump of money. The motivation would appear to be an increase in short term income over longer term earnings.
That’s not been the attitude of genuine long-time farmers, and one wonders what influence bankers may have had in the process.
Farm profitability relies on the low-cost growth of pasture with the most productive land being easily manged with naturally high levels of organic matter.
There is a direct correlation between soil carbon levels and annual growth and where carbon is lost so too is growth potential.
Work undertaken by Waikato University showed that there has been a steady loss of carbon from flat intensively stocked areas in the Waikato.
There is no argument that pasture production prior to the regular use of synthetic nitrogen was significantly higher and there’s a school of thought that this loss is due to its excessive use.
If an incremental decline in farm profitability has influenced the sale of valuable brands the benefit can only be short-term.
Time will tell, however there is enough data to warrant investigation into existing systems with unrivalled profitability where carbon is being continuously sequestered.
For more information talk to Peter on 0800 843 809 or 027 495 0041.
14 April 2026
