Basic Industry Facts
There are nine producer boards established under a variety of legislation.
| New Zealand Apple and Pear Marketing Board | Apple and Pear Marketing Act 1971 | No monopsony. |
| New Zealand Meat Producers Board | Meat Board Act 1997 | No monopsony. |
| New Zealand Game Industry Board | Game Industry Board Regulations 1985 | No monopsony. |
| New Zealand Pork Industry Board | Pork Industry Board Act 1997 | No monopsony. |
| New Zealand Raspberry Marketing Council | Raspberry Marketing Regulations 1979 | monopsony over export and domestic marketing of NZ produce. |
| New Zealand Hop Marketing Board | Hop Marketing Regulations 1939 | monopsony over export and domestic marketing of NZ produce. |
| New Zealand Kiwifruit Marketing Board | Kiwifruit Marketing Regulations 1977 | Export monopsony. |
| New Zealand Dairy Board | Dairy Board Act 1961 | Export monopsony. |
| New Zealand Wool Board | Wool Board Act 1997 | Export monopsony. |
The agriculture and horticulture[1] sectors are important parts of New Zealand’s economy. In 1997, agriculture comprised 5.6% of GDP and 53.4% of the value of our exports (Situation and Outlook for New Zealand Agriculture and Forestry 1998). Agriculture forms the basis of many of New Zealand’s rural activities and underpins a considerable amount of commercial activity in the major cities. Agricultural industries governed by Producer Boards are heavily export-oriented.
However, profitability has consistently dropped over a long period. Many producers are now highly indebted and are facing liquidity problems. MAF’s Farm Monitoring Reports forecasted in July 1998 that, in 1998/99:
- a typical 73ha Waikato dairy farm milking 196 cows would make a profit (after labour and capital costs) of only $33,217 or $0.58 per kg of milksolids;
- a typical 10ha Hawkes Bay pipfruit orchard would make a loss (after labour and capital costs) of $12,732 or $0.56 per carton; and
- a typical 5ha Bay of Plenty kiwifruit orchard would make a profit (after labour and capital costs) of $930 or $0.03 per tray.
Real farmgate returns have consistently fallen in all three cases and poor profitability is forecast to continue through 1998/99. This is for a number of reasons, the most important of which is a general decline in world commodity prices.
Notes
- [1]For convenience, this paper will refer to both the agricultural and horticultural industries as “agriculture”.
