It was a big year for farming - on again-off again meat industry restructuring, start-stop capital restructure at Fonterra, drought, tumbling commodity prices, the Emissions Trading Scheme, Resource Management Act concerns and National back in power. The list goes on and on reports The NZ Herald . A surprising number of issues that could have reshaped the topography of farming came to nothing but they have not gone away either and 2009 is looking like another big year for agriculture. In November last year Fonterra set off with fanfare on the path to capital restructure with the aim of ensuring funds for growth and protecting against redemption risk. When capital restructure does re-surface it will likely be with less fanfare and more certainty. Fonterra's year was overshadowed by the tragedy in China . It is a disaster that will cast a long shadow. The huge drop in the predicted payout could also cast a cloud over the NZ economy!! Meat industry restructuring will likely be back on the agenda next year, despite some price improvements, although possibly more from economic attrition than grand vision. (although MIAG rumours they will put up another SFF director candidate shows that farmers are not finished yet. Editor) Many eyes are on the Emissions Trading Scheme and there is an expectation that the new National government will be more farming- friendly. It will be interesting to see how National tackles the challenge of meeting Kyoto Protocol obligations without hurting our biggest earning sector - which contributes nearly half of our emissions - especially as we battle a global economic slowdown.
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