New Zealand maize growers, who will soon begin negotiating prices for next season, are signalling they will need a minimum of $400 a tonne, said Colin MacKinnon of Federated Farmers of New Zealand.
“Contracts for maize are about to be released and farmers need to know that they will get a decent return – otherwise the land will be lost to other uses, Mr MacKinnon said.
Mr Mackinnon, chair of the Maize Growers section of the Grains Council, the arable industry group of Federated Farmers, said maize growers were under a lot of pressure from low prices and high costs.
“Fertiliser costs have risen by up to 70 percent in the past month. Other input costs and compliance charges such as council rates have also risen but growers are receiving the same prices as in the 1980s.
“We are saying to buyers that these low prices cannot continue, and they must be realistic in the 2007 negotiation,” he said.
By comparison, in Australia the current harvest maize price in Sydney is NZ$427 and in Newcastle NZ$405 per tonne, Mr MacKinnon said.
“New Zealand growers are already exiting the maize industry. We have had two seasons where growers have had to subsidise their maize grain crops.
This can’t continue and growers are being advised that if possible they should move to silage production or alternative land use,” Mr MacKinnon said.
“New Zealand maize is a good quality, locally grown product that is not genetically modified, has no extra import costs, and is grown sustainably. By accepting a price of at least $400 a tonne, buyers will be ensuring security of supply and a maize industry that remains viable in the future,” Mr MacKinnon said.
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