od were hit hard by rising interest rates, and a transition program was negotiated to ease their situation. Farm-related sectors like packing and processing, equipment and chemical supply, and off-farm transport also suffered, but this was regarded as evidence of their previous inefficiency. Overall the transition period lasted about six years, with land values, commodity prices, and farm profitability indices stabilizing or rising steadily by 1990 . since then, the New Zealand experiment has been gradually gaining attention-and respect-around the world. NZ agricultural leaders are invited to speak to international audiences about their country s experience dismantling subsidies, and foreign officials come to New Zealand to inspect the results first hand. Analysts in Europe scrutinize the NZ example as they draft proposed reforms to the EU s Common Agricultural Policy (CAP). In 2001 Alistair Poulson, chairman of NZ Federated Farmers, told the BBC News that the average New Zealand farmer s advice to his or her colleagues in other countries would be to get off the subsidy gravy train as soon as possible.
SPECIFIC CHANGES IN MARKETING AND FARMING [6]
Concessionary farm loans, free advisory services - but did not remove all support. Control of the inflation rate, reduction of the Government deficit, liberalization of regulations, reform of commercial and tax policies, floating exchange rates, more indirect taxation and increased public sector efficiency all helped. p align="justify"> Since 1984 farming has become more efficient and more responsive to market signals.
Output and net incomes in some sectors eg dairy are higher now than in 1980. Total assistance, as a% of output, has fallen, from 30% in 1984, to 3%. Total lambs produced, lambing% and lamb carcass weight have all increased. The cost of milk production is among the lowest in the world
Uptake of new technologies has increased eg ICM systems, new crops, new varieties e.g. kiwi fruit variants.
Since 1984 horticultural exports had expanded by a factor of 5 in value but also in terms of diversity of products and destination; 10 countries in 1980, 102 in 2002.
Export was driven by availability of produce wanted by the market, quality, value, innovation and convenience. The New Zealand horticultural industry now resembled NIKE in many respects.yourself: this is free-market faith to make Adam Smith proud. But the New Zealand experience is pretty persuasive. Well into its second decade of subsidy-free farming, New Zealand enjoys a worldwide reputation for its high-quality, efficient and innovative agric...
