Farmers, hurt in recent years by a "brutal" high exchange rate and low commodity prices, need to develop better resilience, says Agriculture Minister Jim Anderton.
He told the Dairy Farmers of New Zealand conference in Wellington that although exchange rates for the dollar might have come down to more competitivelevels, and many sectors could look forward to higher commodity prices to provide relief, they would not provide a long-term solution.
The rural sectors needed to lock strength and resilience into primary industries, as the nation's competitive edge and source of value would be its excellence.
On milk, he said: "We need more high-value products and better exports because we won't get far as the lowest-cost producer."
Argentina and Chile were now the world's lowest-cost producers, Brazil had become self-sufficient in milk production, while India and China were building production capacity.
"We need to keep moving to new, higher-value markets and protect the valuable markets in which we have gained a foothold," Anderton said.
Meanwhile, Dairy Farmers chairman Frank Brenmuhl warned dairy farmer representatives they might be voted out unless they reported to and consulted with farmers properly.
Referring to "growing pains" in the formation of the Dairy 21 and Pastoral 21 industry groups, Brenmuhl said difficulties could have been reduced if mandates given to various organisations by farmers had been more clearly recognised.
Some good work had to a degree been overshadowed by "political machinations".
"At the heart of all of this is the unwillingness to consult with farmers before deciding on a particular course of action that will affect the livelihoods of farming people," he said.
"The failure to report properly and to consult effectively with shareholders, owners, and beneficiaries gives rise to uncertainty and a sense of wrongness."
Dairy farmers had raised concerns and their elected representatives needed to take heed of this.
"Failure to do so may result in dairy farmers having no choice but to pass their mandate to newly elected people."
