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Producer Boards’ Reform

In: Agricultural Economics and Food Policy in New Zealand

Author

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  • David Hall

Abstract

The Government asked whether Producer Boards should be abolished—was their mixture of regulatory and commercial activities still appropriate? The dairy industry was evolving towards merging the Dairy Board and Dairy Companies into a single company, Fonterra. The Treasury thought producer control of marketing gave only minor benefits. Marketing by a single organisation stifled the innovation and efficiency gains from competition. Producer Boards had wide-ranging regulatory functions but separating regulatory and commercial roles was an underlying principle of contemporaneous public-sector reform. Treasury considered that regulatory functions should be administered by Government. Accountability to farmers needed to be enhanced. The reviews and consultations produced the Meat Board and Wool Board Acts in 1997. Those redefined the objectives of the Boards and increased their accountability.

Suggested Citation

  • David Hall, 2021. "Producer Boards’ Reform," Palgrave Studies in Agricultural Economics and Food Policy, in: Agricultural Economics and Food Policy in New Zealand, chapter 0, pages 275-287, Palgrave Macmillan.
    • Handle: RePEc:pal:psachp:978-3-030-86300-5_18
    DOI: 10.1007/978-3-030-86300-5_18
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