By Philippa Stevenson
Producer boards and their monopoly on major primary exports have all but ended.
In a whirlwind three days, the Government and the three major single-selling boards - dairy, kiwifruit, and apples and pears - have sliced through more than a decade of debate to agree in principle to axe
the boards' governing legislation.
From next year, the multibillion-dollar industries, which between them account for nearly 30 per cent of New Zealand merchandise exports, should be structured into companies much like any other.
In an election-year compromise, however, single-desk selling will still be a feature, although new rules should allow more freedom for other would-be exporters.
Collaborative exporting of kiwifruit with marketer Zespri International will be possible, while dairy exporters will have free access to markets not governed by quotas.
The dairy single-seller will have exclusive access to the countries or regions that set quotas - the United States, the European Union, Japan and Canada - for 61/2 years, with the rights phased out in the following four years.
A new independent body will decide on export consents for the apple and pear industry.
After years of discussion on the relative merits and pitfalls of deregulation, the changes came quickly.
The agreement on kiwifruit was reached on Monday, and was followed by a double-banger for apples and dairy yesterday.
Announcing the introduction of the dairy legislation to Parliament, Food and Fibre Minister John Luxton and Finance Minister Sir William Birch said the move was epoch-making.
The industry's plan to form a mega co-op incorporating most of the nine processing companies and the Dairy Board would create New Zealand's biggest commercial company by a significant margin, they said.
The deals still have to run the gauntlet of Parliament and farmer approval, but neither is expected to present a hitch.
Labour agriculture spokesman Jim Sutton endorsed the concept, but warned that dairy reform risked getting speed wobbles.
Dairy industry chiefs welcomed their deal as the completion of one of four essential steps in restructuring the industry.
They predict the reforms will boost gross annual earnings from $8 billion to $40 billion in 10 years.
Dairy Board chairman John Storey said that could translate into $100 billion for the economy.
"It's like adding four or five Telecoms."
By Philippa Stevenson
Producer boards and their monopoly on major primary exports have all but ended.
In a whirlwind three days, the Government and the three major single-selling boards - dairy, kiwifruit, and apples and pears - have sliced through more than a decade of debate to agree in principle to axe
AdvertisementAdvertise with NZME.