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Home / The Country / Opinion

Shane Te Pou: Labour’s trade deals and environmental policies deliver for farmers

By Shane Te Pou
NZ Herald·
8 Jul, 2023 05:00 PM4 mins to read

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The Alliance Group, the farmer-owned cooperative has signed a memorandum of understanding with Grand Farm, China's largest importer of sheep meat. Photo / RNZ / Nathan McKinnon

The Alliance Group, the farmer-owned cooperative has signed a memorandum of understanding with Grand Farm, China's largest importer of sheep meat. Photo / RNZ / Nathan McKinnon

Opinion by Shane Te Pou

OPINION

As farmers look back on the 2022/23 financial year, in which they posted a record $56.2 billion in export receipts, they can congratulate themselves on hard work well done and give a tip of the hat to the primary sector’s best friend: the Labour Party.

What’s that you say? You’ve heard Labour doesn’t back farmers? Well, the facts speak for themselves.

In six years of the Labour Government, primary sector exports have risen 50 per cent.

Profits have never been higher, with the primary sector making a pre-tax surplus of $12b in 2022, up from just $6.5b under the previous National government.

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This success doesn’t happen by accident. It’s the result of successive Labour governments that have made opening up markets for Kiwi produce a top priority.

The list of trade deals Labour has won for our farmers is as long as your arm, and includes the big ones: China, EU, UK, CPTPP, RCEP, AANZFTA - covering half of the global economy.

Those tentpole agreements have been followed up by a slew of upgrades and trade delegations designed to cut new deals. On Chris Hipkins’ trade delegation to China last week New Zealand farmer-owned co-operative Alliance Group signed a memorandum of understanding with Grand Farm, China’s largest importer of sheep meat.

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In contrast, National tried and failed to get a deal with the Gulf States, and all that resulted in was a load of sheep dying on a failed farm in the Saudi desert.

These trade deals matter hugely.

More markets mean more demand, more options of where to sell, more opportunities for offering premium products - and that all adds up to better prices.

None of this happens by accident. It takes a government that makes trade a priority and invests the money.

Labour has hired an additional 250 diplomats and negotiators to make these deals happen. Their efforts have enabled billions in trade for our country.

“Bloated public service” National calls it.

But farmers these days are businesspeople, and they know what Labour’s trade deals have delivered for them.

Even if they don’t all want to admit it, they also know that Labour’s environmental policies are crucial to keeping those high-value markets in the future.

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It’s all very well to grumble about winter grazing rules that mean you can’t leave your cows up to their bellies in mud anymore, but the cold truth is the global 1 per cent is not going to pay a premium on New Zealand grass-fed steak if they see those pictures.

The winter grazing standards, the ban on live exports, wetlands protections, the SNAs, He Waka Eke Noa – Labour’s not just doing these things because we’ve got to lift our environmental game and improve animal welfare. The fact of the matter is rapacious farming is a terrible brand risk. Cleaning up our act means we get to continue to sell our products to the most discerning buyers.

Just like any industry, smart farmers know they’re better with strong rules that get rid of the cowboys, rather than have their poor behaviour smear the reputation of the rest of the sector.

And when disaster strikes, Labour is the farmers’ friend again.

When National let Mycoplasma bovis into the country in 2017, the initial wisdom was nothing could be done. Labour said “bugger that” and spent hundreds of millions to successfully eradicate the disease.

When Covid shut the borders, Labour ensured the ports remained operational so that the primary sector’s exports could continue to flow.

When Cyclone Gabrielle hit, the Government rustled up $70 million to give to farmers to help clear their land of silt. Farmers haven’t had to pay into a savings fund for that, haven’t had to create an insurance pool. Nope, Labour just fronted up and delivered them the helping hand. Like a mate does.

Now, don’t expect the farmers to get all misty-eyed over that, or acknowledge everything that Labour has done for the primary sector as any more than they’re due.

I’m not naive enough to suggest farmers are going to suddenly start voting Labour in their droves.

But you do have to ask yourself whether, in the privacy of the polling booth, farmers who have done so well under Labour are going to back the party that delivers for them. Or will they take a punt on the other guy – whose devotion to rural New Zealand was best shown when he closed down all those Air NZ regional flights?

Shane Te Pou (Ngāi Tūhoe) is a commentator, blogger and former Labour Party activist.

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