Saturday, September 4, 2010

Land of Milk and Honey

The term "Land flowing with milk and honey" was first promised by God and mentioned by Moses in the Bible (Exodus 3:8). This land refers to Israel.

Today there are many lands with plenty of milk and honey... one of them is NZ.. however their milk and honey are expensive comparably. Milk at $4.59/2L is more expensive than in the US at $2.84/2L as the Weekend Herald survey shows. It is also more expensive than Australia and Britain. And NZ is reputed to be the biggest dairy products exporter in the world and Fonterra of NZ is the 5th largest dairy company in the world.

In terms of milk and dairy production, NZ annual production is around 17 m tonnes, compared to India (world largest producer) with 114 m tonnes but the Western World would specifically mention that the European Union as a unit is the world biggest producer with a combined 143m tonnes.

China's annual dairy production is currently in the region of 33m tonnes but it is the largest honey producer in the world with an annual tonnage of 298,000 or 21.5% of the gobal honey. New Zealand, known for its expensive manuka honey, manages an annual production figure of about 10,000 tes.

The emerging new Land of Milk and Honey is going to be China. No wonder when the Chinese seek to buy up 16 Crafar dairy farms (totalling about 8000 ha), which are under receivership, there has been a nation-wide protest from the Kiwis against such foreign ownership of their dairy land, saying New Zealanders would not like to be tenants in their own land. This 8000 ha represents about 0.5% of the total 1.52m ha of dairy farmland in the country. The NZ Minister of Land Information Mr Maurice Williamson recently highlighted this fact that if the potential buyers for Crafar farms are from Scotland, then there are not "foreigners" as "they do not look different from us", He was accused of being a racist!

Also, the total area of Crafar farmland is but a fraction of the 24,700 ha of farmland in Wanaka (South Island) bought up by Ms Shania Twain, the pop star from Canada in 2004. Canadians were not considered as "foreigners"?

An extract from the leading newspaper in New Zealand, NZ Herald, in an editorial of 7th September, 2010:

"The issue has stirred up a wave of xenophobic scaremongering over China's intentions for the dairying industry. Among other things, a group called Save the Farms has sprung into being. It wants the Government to stop any sales until the country has had a robust public debate.

The group says it is "not a xenophobic organisation". If so, why was it silent last week when an American billionaire, William P. Foley II, was cleared by the Overseas Investment Office to buy Wharekauhau, an exclusive 2023ha Wairarapa country estate and farming business?
And why did its organisers say nothing as Britons, Italians, Americans, Israelis and Australians bought the bulk of more than 150,000 hectares of New Zealand farm land - almost the size of Stewart Island - over the past five years? During that period, China hardly registered as a source of foreign investment.
Now, however, its first major foray has hit a wave of resistance.


Those who have been buying the vast majority of New Zealand's farm land are distinguished by two characteristics. They are English-speaking and they are non-Asian. As Mr Williamson noted, "if you look different, you're a foreigner but if you come from the other side of the world, from Scotland, then you're not".

The sale of the Crafar farms to the Chinese investors is still pending official approval by the Overseas Investment Office. Local corporations have tried to outbid the Chinese but lack the financial ability to do so.

The Crafar dairy farms sale, if it materialises, is not going to turn China into the biggest land of Milk and Honey, overnight, but it certainly is a start.

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