A Decade of It

Since 1983 New Zealand farming has moved from a relatively high income, protected, low-risk environment, to a low income, unprotected environment in which industry now carries the risks. Now delegations are coming to New Zealand to study how we achieved this transition, and this country is regarded as a trail-blazer down a track that the General Agreement on Tariffs and Trade agreement, aimed at delivering freer world trade in agricultural products, is nudging all agricultural producers down.

Initially, this was a difficult and stressful transition for everyone in rural communities. In 1986, nearly one-third of the farming population marched in a protest to Parliament. However the government reinforced its commitment to an internationally competitive agricultural sector, refused to reinstate direct support and pledged to continue reform as the best means to improve international competitiveness in farming. When it became apparent that government was adamant, the mood began to change from anger to resignation, and finally to positive action. The trends in New Zealand agriculture over this traumatic period have been tracked in the MAF Farm Monitoring Reports.

Farmers began to respond directly to international market signals; increasing farm business management efficiency, changing enterprise mixes, and diversifying farming operations. Less profitable sheep began to be replaced with more profitable beef cattle. After simply trying to maximise output, farmers started producing fewer, better quality products. Farmers started demanding more market information and began producing products to meet consumer.

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Contact for Enquiries

Farm Monitoring Programme Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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