Time for food made domestically to be subsidised for New Zealanders?
The mantra from our agricultural sector is that NZ is the garden farm for the planat and that we feed 40 million people.
Lovely, but what about us domestic NZers?
The farmers and producers pat themselves on the back for their export smarts and clever marketing.
Lovely, but what about us as domestic NZers?
The quality of our food is considered some of the best on the planet.
Lovely, but what about us as domestic NZers?
Why is it that when I want to taste some of the fine produce created and made in this country I need to pay an arm and a leg for it? Why is dairy so bloody expensive? Why is meat so bloody expensive? Why are vegetables grown here in NZ so bloody expensive?
It’s because we 4 million NZers are competing with those 40 million others for food grown in our own country and they control the price, not us.
The punishment for our free market system is that we pay the price producers can obtain on the open global market which of course pushes the price up.
I say it’s time that we have a domestic subsidy for domestic consumers of produce created in this country.
Why? Because as consumers we’ve already paid a price for that product.
The Government structure many of our producers into monopolies for export advantage, an advantage that hurts the domestic market, but on top of the structurally un-competative models that push prices up for domestic consumers, we also pay a huge price in environmental damage and degradation of our water.
But what about the jobs dairy and meat and produce create for us the agricultural barons will claim?
What jobs? Most of the agricultural industry is built upon cheap migrant labour, it isn’t hiring the likes of you and me.
So let’s recap.
- Most of these industries have uncompetitive structures that hurt us the domestic consumer.
- Most of these industries rely on cheap migrant labour.
- Most of these industries damage the environment.
- AND we have to pay a global market price for the produce.
I say fuck that.
We pay a cost already for these producers so they can maximise their profit margins with the 40 million overseas consumers, it’s time that cost was factored into the domestic price that we pay so that we have a subsidised price for produce grown in our country.
The agricultural barons will splutter in rage that they should cut the price for domestic consumers when they can maximise it for their overseas markets.
They can splutter all they want, we have paid a price for decades and decades and decades in the environment and in allowing uncompetitive structures to inflate prices, we should now start getting ours.
I believe it’s time NZers should be able to buy their own produce grown in this country at a price cheaper than can be sold offshore because as domestic consumers we have already paid the environmental and monopoly costs of that produce.
We deserve nothing less.
The produce we buy is often inferior to that sold internationally, in fact evidence from these global markets often shows we’re paying more than they are and they get top quality, with transport costs. We are seriously being ripped off.
I don’t think it is the ‘agricultural barons’ that make a mint out of producing food and raw products.
If a closer look will be allowed, we may see, it is the middle men and middle women who take their nice cut out of deals, including buying and on-selling, transport, storage, processing and end selling.
We have a supermarket duopoly, that does not help. Perhaps bring in some regulation, or offer the entry of another larger retailer?
Then there is GST, which we have on everything, almost, but in many other countries, it is at a lower rate on essential products, such as food, or not charged at all.
Perhaps we should start with making food stuffs GST exempt, or only having to have half the GST on it, than other products and services? Labour once flirted with the idea, where are they at now?
Some very good points there , MARC .
Yes , I should imagine some produce was cheaper back in the days of pre 1984 , – when they removed import tariffs ec to open up the free market.
It does seem ludicrous that many basic food items , – even NZ produced , – are cheaper for example in Australia,… it cannot be argued that it is because of ‘ economy of scale’ either.
Someone is manipulating this and on the make big time in this country.
Everyone needs to eat , and they know they have got people over a barrel unless they want to regularly eat unhealthy , nutrient poor diets.
I also have the thought that COUNTRYBOY has more than a keen inkling of who really is behind all this and driving these conditions ie :
The Banks,.. of which , – 96% are foreign owned.
THAT ,… may go a long way into telling us the real reasons why.
We unfortunately get the seconds, check out quality of Apple’s, etc. next time you go to the veggie shop. In the last year I’ve had to buy Australian beef, French butter and garlic from the US(total madness). All products we produce here. Maybe subsidised production through Landcorp could be an option? The reason the French butter is cheap is because of EU subsidies has led to overproduction.
It’s time for the supermarket duopoly in this country to be broken up.
A duopoly breaks every tenet of the so-called “free”: market – and yet it was allowed to happen.
In one one Wellington’s northern suburbs, Johnsonville, there are two supermarkets. Both are “Countdown”. No other major supermarket in the area.
And surprise, surprise, the prices are near-identical.
If we’re going to have a near-monopoly, we might as well remove the fig-leaf of “competition” and nationalise the damned things.
Definitely nationalise the fish, and Dolphins, and whales, and birds. And so on.
Here here!
or should I say hear hear.
Agreed JohnnyBG.
I have met a lot of people trying to make a living growing food for local consumption. They use the best environmental practices they know about. But if I go to an organic shop or farmers market to buy their produce, I often pay the same or more than I would pay at the supermarket for imported food. Why?
It’s to because the growers or the people running the distribution outlets only care about money. I know that’s not true. You have to look at their outgoings, and where all that money is really going. As with housing affordability, a lot of it comes down to the real estate merry-go-round.
Sorry Martyn, subsidizing food is a fool’s errand. It never works out for the best as Venezuela is finding out now and they have had subsidized food for a very long time. There are many countries in Africa and the Middle East that subsidize food that suffer major distortions in their economies. It is a silly notion in the same way as trying to remove GST from food.
For what?
Look at some of the things that are GST exempt in Australia
1. Food stuff (Milk, Bread, staples)
2. Rent
3. Most medical expenses
4. School fees
5. Childcare
There is no justifiable reason for New Zealand not to do the same especially since it would be really easy to implement.
Which is why not only will Labour support it but so should everyone else in Parliament.
Maybe you might oppose it but I can’t see why anyone else would.
It’s certainly not a New Zealand vs Venezuela thing.
Even something like taking some of that GST money and subsidising staple food items. Will actually drag consumers away from big super market chains and back to dairies because they’ll be able to compete on a level playing field.
I mean fuck me. If I let you buy my produce you’ll go to the most expensive fucken GST friendly shop you could find and then what? Blow the god dam budget that’s what.
“I believe it’s time NZers should be able to buy their own produce grown in this country at a price cheaper than can be sold offshore because as domestic consumers we have already paid the environmental and monopoly costs of that produce.”
Completely agree with that 100%