Originally Posted by
Enumerate
Your analysis of dairy is flawed.
Dairy productivity, in NZ, has grown at a phenomenal average rate over a very long timescale. Some estimates put this at upwards of 15% pa. This productivity is driven by improving farming practice and biotech innovation. We do not even approach the intensive farming practice of some countries nor do we even remotely match their innovation investment (eg Nederland).
We have the most efficient grass fed dairying systems in the world - there is a premium for products in this category - further, our practice is closest to being "sustainable" rather than peak "efficient".
Fonterra, as a NZ "institution" also confers some significant advantages to NZ dairy farmers.
Is there a "Dairy Bubble?" or has Bernard Hickey had his brain stapled? (Hint: part of Bernard's problem is his poor statistical base for his claims - still waiting for the 30% collapse in NZ property prices?)