Strategy for New Zealand Dairy Farming Launch

Good evening. It is a pleasure to be at the launch of Dairy NZ's Strategy for New Zealand Dairy Farming 2009-2020. I would like to acknowledge our Prime Minister, my ministerial colleagues, and welcome to Parliament invited guests - especially farmers from around the country.

The Dairy NZ board and management should be congratulated for developing the Strategy being launched tonight.

It is great to see the industry working together to develop a strategic approach to its future. So often in the past, the primary sector has failed to do this.

The Government is well aware how important the dairy industry is to the New Zealand economy. New Zealanders should know that the recent 10 cent increase in the Fonterra payout helps everyone.

We will all enjoy a higher living standard because that 10 cent increase adds $120 million to our economy.

The Government certainly appreciates this and is committed to working with the dairy industry in a wide range of fields including market access, biosecurity, innovation, infrastructure, and reducing red tape.

All these will help the industry thrive and help to address challenges laid out in the Strategy being launched tonight.

No industry can be truly sustainable without profitability and international competitiveness.

The key outcomes in this Strategy are the right ones - profitability, access to skills, international competitiveness and reputation for quality, and partnerships for shared goals.

This said, there is one other area in which the dairy industry needs to show leadership.

Environmental sustainability is the industry's biggest challenge, especially in water use and water quality.

Ten years ago, I was the Associate Minister of Agriculture. Since then the biggest change has been a global shift in concern for environmental sustainability.

The dairy industry needs to understand this concern - because to ignore it is not an option.

There is a sense in this document being launched this evening that achieving environmental sustainability for dairying is seen as essentially an issue of compliance with central and local government priorities.

I would argue for a much better and proactive approach. The dairy industry needs to accept ownership of its environmental performance.

Don't see it as a compliance issue but, as an integral part of your future business success.

This Government's clear preference is for voluntary industry-led environmental management but if the sector is not responsive, we will act.

I have said it before and I will say it again. No farmer has the right to pollute.

Most farmers agree with me.

The challenge is to stop the small number of dairy farmers who ignore environmental standards from damaging the reputation of your industry and New Zealand.

The Strategy has identified that the rapid growth of our dairy industry is presenting both challenges and opportunities.

To meet these, farmers, processors, central and local government, and the New Zealand public must work together.

I look forward to being a part of the evolution of the New Zealand dairy industry.

I now have great pleasure in inviting our Prime Minister, John Key to officially launch the Strategy for New Zealand Dairy Farming.