Dannevirke: Farming helps keep economy growing

Cows grazing lush, irrigated paddocks at Oringi as Fonterra tankers unload their milk on to the train for the trip to processing plants. Photo/Christine McKay

The rural sector is pulling Tararua retailers out of the bad times, but they shouldn't become complacent, warns Lianne Simpkin, the Tararua District Council's economic development manager.

Mrs Simpkin said the latest figures from Paymark have shown constant growth in Tararua since 2011.

"Our growth has been higher than our neighbours since October 2012, with total domestic spending in the district rising by 8.7 per cent during January this year," she said.

"There's been a 9.2 per cent rise for the current financial quarter and a rise of 6.8 per cent for the year.

"These figures compare well to the rest of New Zealand and indicate the rural sector is pulling Tararua retail out of its flat economy."

The 288 dairy farmers in Tararua produce 30 million kilograms of milk solids every year, pouring $240 million into our local economy. "Fonterra is the engine which drives the local economy," Fonterra director and Tararua dairy farmer, John Monaghan has said.

A recent Fonterra business meeting in Dannevirke highlighted the benefits of the rural community shopping locally and Mrs Simpkin said following the meeting she received a letter from a farmer who had a message for retailers and our service industry.

"He said, 'good service, at a reasonable price, with good communication, is what every customer deserves'.

"The farmer said he believed local services can cater for just about all the farmer's needs, but they have to ensure they do not lose their business by taking the customers for granted," Mrs Simpkin said. "Abusing customer loyalty could result in the farmer's dollar being spent in other centres."

With 310 shareholder suppliers spending 50c in every dollar they earn in the district and the pay packets of 150 Fonterra employees at the Pahiatua site being spent throughout the district, Fonterra is powering our local economy, dairy farmer Russell Phillips believes.

"It's important people realise what benefits dairy farming brings to our economy and it's not just a one-off such as the building of a new powder plant at Pahiatua," he said.

Nathan Guy, the Minister for Primary Industries, in Dannevirke last Friday, said agriculture was the backbone of the economy.

"Farmers are doing their bit for the economy," he said.

"While you were having a snooze last night, our exporters were generating $24 million. We export to 200 countries and feed 40 million people."

Mr Guy said farmers underpin New Zealand's economy and exports are about $4.9 billion up on where the Ministry of Primary Industries expected.

Locally, it's important the business community is on board in providing great customer service to the agricultural sector, Suresh Patel the Dannevirke Chamber of Commerce chairman said. "The money Fonterra brings into our district is invaluable, but we need to provide top quality service to retain that spending."