This material is excerpted from the ONTARIO MILK PRODUCER as it appears
in the Manitoba Co-operator Dec. 10, 1998 p. 4
"When the idea of deregulation is discussed in the dairy
industry, we often hear proponents holding up New Zealand as an example
of how producers can prosper in a deregulated market. However,
deregulation in that country is more myth than reality. (COMMENT: This is
not quite true of course, but as applied to dairy producers I assume they
are correct.)
The New Zealand Dairy Board (NZDB), which has monopoly powers for
exporting dairy products, exists as a result of regulation and
legislation. A political struggle is now under way there to maintain that
regulation. Here's a quote from a report on the NZDB's recent annual
general meeting.
"Retiring dairy board chairman Sir Dryden Spring hit out at
deregulation of producer boards at the board's AGM (annual general
meeting.).
"Sir Dryden Spring has labeled the deregulation of producer
boards as a gigantic hoax."
"He said the 'seductive myth' was being advanced that if the 'magic wand
of deregulation' was waved in the direction of the producer boards, a
much-needed economic miracle would follow and export receipts would
skyrocket.
"They won't," Sir Dryden told today's annual general meeting of the
dairy board.
The report later noted: "Sir Dryden said the decision as to
whether the single seller was best for New Zealand farmers was one for
farmers to take.
"Their view is absolutely clear; they remain overwhelmingly in
favor of retaining the board's statutory powers."
Dairy industries around the world operate in a regulated market
system. Specific regulatory powers differ but they are all designed to
give farmers some power in the marketplace. Without them we would be at
the mercy of the lowest bidder."
Cheers, Ken Hanly
P.S. I wonder if SIR Dryden was elected to the board or appointed by the
queen through the governor general!
