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Thread ID: 126529 2012-09-03 00:19:00 Outsourcing ! Unbelievable! Digby (677) PC World Chat
Post ID Timestamp Content User
1298523 2012-09-05 00:09:00 Digby makes a good point
NZ has allways relied on primary produce as our main export. This( & tourism) will never make NZ more than a poor country, over the long term. As land prices skyrocket,& wages & costs increase we will have less & less of a competitive advantage.
Plenty of counties with spare land for farming, look at all the food we now import from China, because its cheaper than growing in it NZ . So dont expect any economic miracles based on farming.

We have some HUGE companies in the farming industry. These companies cant get all this so called extra sales & revenue that some 'talk' about , these magical mystery markets for our goods dont exist in the real world.

We arnt a 1st world economy, at the mo NZ is just living on borrowed $$ . Our real wages will eventually drop to match, unfortunately for all of us cost of living just keeps going up.
1101 (13337)
1298524 2012-09-05 00:25:00 Unless that money is going overseas it doesn't change things too much for the economy. More of a worry is the lack of NZ owned companies so retaining dividends and profits here.
Well, I can rebut that point. By actually doing decent things with that money we can lower health costs, which will help the economy
Nick G (16709)
1298525 2012-09-05 00:27:00 @MikeBartnz

A very good summary, probably all true.

So its Manuka honey then that is our one true competietve advantage in the agricultural world.
So if we could just double our Manuka honey exports, then ......

But Kudos to the companies that do sell it, but its always going to be small bikkies.

Yes you mention Tourism as well.
As you say that is big another industry that employs low paid workers.

And yes 1101
We do keep hearing about the huge markets eg milk powder for babies. And as you say surely Fonterra would be selling it if they could in NZ branded cans not bulk bags.

The interesting thing is that NZ does quite well in IT as many of you will know.
We also have lots of small niche manufacturers that export high tech products, but they are never going to be huge.

Then we get the situation where a company does start to get big and they sell out so that the profits and dividends and jobs go overseas

So where is our Competive Advantage ?
Digby (677)
1298526 2012-09-05 00:36:00 Fonterra is setting up dairy farms in China and South America so we will be doing the same there as we did with Kiwi fruit .
A shipment of in calf 2y cows just left Napier recently bound for China . I am not sure how many thousand it was but I know it was well over three .
So once again we are shooting ourselves in the foot .



Nope, we are not . As long as fonterra owns the plants and farms, its great! We get profits, they get the stuffed environment .
Nick G (16709)
1298527 2012-09-05 00:42:00 <snip>

So its Manuka honey then that is our one true competietve advantage in the agricultural world.
So if we could just double our Manuka honey exports, then ......


The interesting thing is that NZ does quite well in IT as many of you will know.
We also have lots of small niche manufacturers that export high tech products, but they are never going to be huge.

Then we get the situation where a company does start to get big and they sell out so that the profits and dividends and jobs go overseas

So where is our Competive Advantage ?
You've just said it. Niche manufacturers that do small exports. If we have more of those, it will all add up.
Oh, and can we stop saying we should be like Australia? They have lots of minerals, we don't. That's it.
Nick G (16709)
1298528 2012-09-05 00:42:00 Well, I can rebut that point. By actually doing decent things with that money we can lower health costs, which will help the economy
You don't really rebut it at all. The trouble with that is what you decide is decent things will probably be totally different to what I decide.
Health costs are a burden and what we need to do there is have the ambulance at the top of the cliff and not at the bottom.
ACC has a real problem there. I know a guy who if he had the operation he required within a short time of his accident he would be back in full time work now but ACC mucked him around going from one specialist to another and now he will probably never work again in his life. He can't even drive a car for more than half an hour now.
mikebartnz (21)
1298529 2012-09-05 00:48:00 Nope, we are not. As long as fonterra owns the plants and farms, its great! We get profits, they get the stuffed environment.
Fonterra can't own the land there and we are helping to kill our own local dairy industry by doing that just like we did with kiwi fruit.
mikebartnz (21)
1298530 2012-09-05 00:49:00 You've just said it. Niche manufacturers that do small exports. If we have more of those, it will all add up.
Oh, and can we stop saying we should be like Australia? They have lots of minerals, we don't. That's it.
Who has been saying we should be like the Aussies?
mikebartnz (21)
1298531 2012-09-05 00:53:00 Who has been saying we should be like the Aussies?
Didn't mean you, I was just trying to stop it from coming up in this thread.
Fonterra can't own land. And that is why we should...be like Australia*...and make sure it is a two way thing. If we did it would be pretty good.

*Yes, I did notice the irony :D
Nick G (16709)
1298532 2012-09-05 00:53:00 You've just said it. Niche manufacturers that do small exports. If we have more of those, it will all add up.
Oh, and can we stop saying we should be like Australia? They have lots of minerals, we don't. That's it.

Yes Germany has lots of small family owned business making industrial stuff like gears, etc and they do very well.

Yes forget Aussie, they are going to price themselves off the world market.
And as you say they have lots of minerals (in the outback) we have some (in Coromandel)
And our coal needs to be dug out not open cast etc.

But we do have lots of rain, which comes back to farming.
I just wonder how much more of our land we can turn into high density farming and wineries etc, without ruining our waterways even more than they are.

But getting back to those cows, once they are over there, the Chinese will find ways to breed from them.
They will never be able to export diary as their population is too large, but it could affect our exports to them one day.
Digby (677)
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