Dairy farmers are increasingly restricted as the public is being turned against livestock farming, yet development continues in other countries.
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Rice terraces in China might change into growing feed for cows in some parts of China.

We hear of various planning permission obstructions to farmers all over the country, for
no apparent reasonable reason.

We hear of farmer and livestock bashing daily, with little balance or proportional
debate.

Often, it’s the inequality that angers farmers when they see what’s happening in other
parts of the world.

Processing facility

This week, we learned about Mengniu setting up a facility to cater for the milk from a
100,000-cow dairy unit.

Mengniu is one of the better-known Chinese dairy companies.

We understand construction has started on this large-scale processing facility, which
will cost about €520m and will cover an area of about 870 hectares – that’s about 2,150
acres of buildings.

The facility will take the milk of about 40,000 dairy farmers. This milk will be produced
from feed imported into China.

Carbon leakage

Carbon leakage is a term often used when describing the movement of methane from
dairy and beef production when milk or beef is not produced in one country, but
produced in another country that might be less efficient.

This week, we learned the carbon border adjustment mechanism (CBAM) is being used
to equalise the price of carbon between domestic and imported products. However, the
mechanism is only being used on certain products.

Those exporting into the EU will be required to buy carbon certs that will correspond to
the carbon price that would have been paid if the goods were produced under the EU
carbon pricing rules.

The mechanism is to apply to iron, steel, cement, fertiliser, aluminium and electricity
generation from 2023 – not milk.

So dairy farming can continue to move to areas that might be environmentally less
efficient, financially less efficient and less sustainable.

storage rewards, but no plan or vision is in place on how it might work.

Companies are being set up to trade carbon credits or collect slurry from farmers, with
farmers the pawns between success and failure.

Why can’t farmers own, run and drive this for themselves? Where’s the next Horace
Plunkett to drive this for farmers?

Nominations are open for Fonterra’s board election but a repeat of the drama that rocked the vote three years ago can be ruled out.

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