Farming groups want certainty of mega merger

By GLENYS CHRISTIAN

More than a decade ago, Putaruru farmer Jim Graham, as he was then, stood down as chairman of the Dairy Board.

He'd had a rough ride in the seven years he'd been at the industry's helm unsuccessfully trying to persuade the Labour Government that its exchange-rate policies were wrong and hurting his industry's productive capacity.

Last week, Sir James Graham was prodded from his retirement home in Mt Maunganui to comment on the delays in dairying's present stuttering moves towards the mega co-op.

"The downside of not achieving the merger is enormous," he said.

"The Dairy Board, its executive and offshore staff lack certainty of unified direction by its shareholders, the companies."

Ten years ago, Sir James made the point that on-farm efficiency was the best ingredient for efficiency in the dairy company boardroom.

"The main consideration is, 'are your staff competent so that when you set policy they can carry it out'," he said.

The board - Exporter of the Year - knows well the policy it needs to carry out to propel it into the future, but until messy intercompany matters are sorted out it cannot charge ahead.

Many farmers, while wanting greater accountability, also look back with fondness on the days when the board was seen as a benevolent dictator.

The companies could argue all they liked but farmers knew it was the board that got on with the job. And that was precisely why strongly focused, practical people such as Sir James had their trust.

The latest farmer pressure group, Farmers for Control, is trying to recreate that common sense of purpose by uniting dairy farmers to make sure the mega co-op goes ahead in a way that is fair and equitable to them all.

Bay of Plenty spokeswoman Catherine Bull says it has widespread support, with many farmers feeling there is no one with authority to lead their industry forward.

She says its inspiration comes from dairy-farmer groups in Denmark who 18 months ago used their unity to push for merger arrangements with the Swedish dairy industry. That is the type of big-picture view needed here right down at grassroots level, she believes.

But big picture must grow, not just be imposed.

The Minister of Agriculture-in-waiting, Jim Sutton, and Federated Farmers did few favours to anyone last week with their overly optimistic endorsements of World Trade Organisation objectives.

The case for fair trade has to be made logically, progressively and repeatedly and rubbishing critics by saying they are simply wrong does nothing to aid that process.

Consumers all over the world have serious concerns about what the new trade round may mean to small communities, particularly those in developing countries.

They want assurances that they are not losing any of the minimal control they still have, exactly as dairy farmers have been proved correct to fear all through their industry's torturous reform process.

It is only when all questions are answered satisfactorily that real progress will be made.

A small-scale example is provided by meat company Richmond.

Criticised by farmers for a stock declaration form that is neither clear nor convenient, livestock manager Lloyd Fitness reports that all suggestions are being taken into account and the new and improved model will be in cattle and deer-farmers' hands early in the New Year.

* Glenys Christian can be contacted on e-mail at glenys@farmindex.co.nz