Cows v Hobbit

Liam Dann from the NZ Herald produced some interesting figures on the importance of the dairy sector to the NZ economy. With all the commotion over the production of the Hobbit in NZ it seemed that its loss would have a significant impact on the economy.

    Here are the figures:

Two hobbit films = $650million

Fonterra payout:
2009 = $6.61billion
2010 = $8.61billion
2011 = $9.6billion

That increase is primarily down to booming global dairy prices. But in the past month the weather has added to the good news. This year the peak day of the season saw 76.8 million litres of milk processed – three million litres more than last year’s record. If current payout predictions hold, that’s another $560 million that will flow in to the economy thanks to the weather (taking the total value to $9.6 billion).

In a way we are at the mercy of the weather gods – good growing conditions = an increase in milk production. Although we have kept the production of the Hobbit in NZ its impact is not so much financial but a feelgood factor. The reality is we rely hugely on our ability to produce milk and that this commodity fortifies our economic growth.

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