How uncomfortable were Fonterra on the 13th June?

I wonder how uncomfortable Fonterra Executives were during Tim Groser’s speech to them at the Field Days Agricultural Jamboree this year.

It’s 13th June, Fonterra know there is a problem with their product and they are listening to Trade Minister Tim Groser give his address to New Zealand National Fieldays.

Groser on the challenges the industry faces…

This is not like some ripe plumb, ready to fall into our hands. It is simply an opportunity. To grasp it, we need to continue to ensure, for example, we have the right tax policies, 21st Century infrastructure suitable for a small but successful outward-looking economy, the right regulatory frameworks in place governing water, food safety and myriad other issues.

Putting this aside, let’s focus on longer-term drivers of change behind the outstanding prospects for New Zealand agriculture. Fundamentally, we are at the beginning of the same process of globalisation of trade in food as was the case for globalisation of trade in industrial products some fifty years ago. Revolution is quite the wrong word and concept. It is an evolutionary process and it is about readjusting to new realities in food security.

I have no doubt that our FTA with China is, in effect, a small part of China’s food security for the future. Our investments in Chinese agriculture production, and we are just starting down this track, is another small part of this phenomenon.

One of the more perverse moments in this latest Milk scandal is that while the Trade Minister is lecturing the industry on food security standards with China, Fonterra knew they had a food security problem on their hands.

While reportedly pointless, it is highly likely that NZers will in fact be crying over spilt milk.