Manufacturing Data

June 17th, 2013 at 10:00 am by David Farrar

Labour, Greens and NZ First release their “report” from their manufactured inquiry into the manufacturing crisis. They specialise in putting out cherry picked data to try and convince people there is a crisis in manufacturing.

To counter that I’m blogging these graphs which are all directly from the Infoshare database and show some key metrics over time, so people can see the actual changes and trends. They are a mixture of positive and negative, but not an indicator of a crisis I would say. In fact all have been improving recently.

mangdp

This is the manufacturing component of NZ’s GDP. There certainly has been a decline in real prices, but note it started in 2006 and since 2010 it has started growing again.

manwages

This is the total gross earnings from people working the the manufacturing sector. A significant fall from Q1 2008 to Q3 2009, but some growth since then.

manjobs

The number of jobs in the manufacturing sector has been falling since 2004. This is partly because of growing automation.  The large falls began in Q1 2007 until Q4 2009. Since 2009, there has been some modest growth.

mansales

The manufacturing sales show a similar pattern. A big decline started Q1 2008. Since Q4 2010, it has been growing – quite strongly in recent months.

PMI

 

This graph I blogged last week and is not from Stats NZ, but the BNZ/Business NZ Performance of Manufacturing Index. It is basically a specialised business confidence index for the sector. It is at a nine year high.

So what do these graphs all show? Several things:

  1. NZ suffered from the global financial crisis in late 2008 through to 2010
  2. NZ manufacturing started declining prior to the GFC, in Labour’s last term. This is no surprise as we went into recession at the beginning of 2008, and the tradeables sector was in recession from 2005.
  3. Jobs in manufacturing have been declining for a longer period, due to automation
  4. Every manufacturing indicator is now positive and growing, with confidence for the sector at a nine year high

It’s good for parties to promote alternative economic policies for sectors such as manufacturing. That is what politics is about. It is not good however to try and manufacture a crisis, when there clearly is not a crisis.

As for the exchange rate, have a look at the TWI in the last year.

nzdtwi_3_12m

 

And before anyone lies, this post was my idea, all my own work, and unknown to everyone else in the entire universe  until it appeared on the blog.

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76 Responses to “Manufacturing Data”

  1. KiwiGreg (3,255 comments) says:

    Obsession with manufacturing jobs is unhealthy. These arent particularly “good” jobs and in a modern economy making goods is a minority activity.

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  2. nasska (11,578 comments) says:

    They may not be particularly “good” jobs KiwiGreg but they give employment to those too thick or uneducated to do anything else. Manufacturing is very labour intensive.

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  3. Redbaiter (9,098 comments) says:

    Wow, the intellectual power group of the Kiwiblog comments section is putting on a great display this morning. FFS..!!

    Here’s a hint. If you can’t make stuff and trade it in the global markets, you might as well fold your tent on any ambition to be a prosperous country.

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  4. KiwiGreg (3,255 comments) says:

    @nasska not compared to, say, a hotel. Go to a modern plant, try and find the people. Manufacturing is generally too dangerous for the terminally stupid.

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  5. berend (1,711 comments) says:

    DPF: And before anyone lies, this post was my idea, all my own work, and unknown to everyone else in the entire universe until it appeared on the blog.

    What? You downloaded data straight from Stats NZ and put it in a graph? All by yourself? Nah, that can’t be true. Must be coming straight from the National Party’s head office.

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  6. Fisiani (1,039 comments) says:

    So do you want a strong government or a weak one? Do you want a motley collection of losers or a strong government?
    Do you want a weak New Zealand or a strong New Zealand.
    Do you want led by the Green/Labour/NZ First /Mana monster or by a successful John Key led National government?

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  7. anonymouse (717 comments) says:

    David, you might also want to have a look at this Paper from the Reserve bank on what the NZ “Manufacturing” sector is actually composed of,
    http://www.rbnz.govt.nz/research/analytical/AN12_11.pdf

    Labour the Greens like to encourage the idea that it is factories with lots of people making widgets , be they lawn mowers, fire engines or whatever,

    It is interesting that over 50% of the official manufacturing sector is what most people would call primary processing, ie Dairy Factories, meat works, saw mills etc,

    Someone should actually ask the Greens what the flow on impact their policies for the dairy sector ( ETS, etc) would actually have on the Manufacturing sector they care for so deeply….

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  8. Redbaiter (9,098 comments) says:

    “So do you want a strong government or a weak one?”

    A weak one thanks.

    “Do you want led by the Green/Labour/NZ First /Mana monster or by a successful John Key led National government?”

    You mean do we want NZ’s socialist coaltion to be led by group A or group B? Neither thanks. I want a new party that advocates reducing the size of government and the tax take by 50% to start with.

    If they can’t do this then NZ manufacturing will remain pretty much uncompetitive globally. The excessive cost of government is an overhead the global markets are just not prepared to pay for.

    Key will not address this main issue so he is no different to Russell Norman. They’re both just frittering around the edges.

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  9. rouppe (971 comments) says:

    You do opinion pieces in the paper now and then David. Why don’t you publish this there? The papers just won’t and while this is a popular blog, it is unlikely the union members in their smoko room read it – they read the paper.

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  10. Cunningham (844 comments) says:

    I know it is their job but I am so sick of the continual BS that comes out of the mouth of the opposition. They are talking about major changes to things that aren’t broken. We don’t need the NZ Power, printing of money etc. This country needs some certainty and changes where required not changes just to get elected. They are playing a dangerous game that could cost this country dearly.

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  11. gazzmaniac (2,307 comments) says:

    Good old predictable Red.

    As for those who say the manufacturing industry is for dumb people, I’d suggest otherwise. Look at the manufacturing processes in Japan and northern Europe (Ikea, BMW, etc). They are highly mechanised and the staff are highly paid, and many have engineering degrees. Contrast that to manufacturing in eastern Europe, where it’s more “traditional,” with low paid labour making labour intensive products. Companies from northern Europe manufacture their labour intensive products in places like Poland. I’m not saying one manufacturing model is better than another, since I think NZ needs more entry level low paid jobs to get deadshits off the dole and jobs for kids coming out of school. Having said that, the brain drain might start reversing if there were high tech job opportunities like in northern Europe and high paid jobs like in Australia.

    And Redbaiter – those countries with the high paid jobs don’t have regiemes like what you’re advocating.

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  12. PaulL (5,987 comments) says:

    @Red, I think we do make stuff and trade it in international markets, very successfully. That stuff tends to be agricultural produce, which we’re world leaders in. Aspiring to make stuff that the Chinese make better is probably not a great idea, extending our existing advantage in the primary sector does make sense.

    If I was dictator, then I’d be:
    – investing a bit more in value adding, but that value adding to come through increased competition (less of the monopoly exporters – our future isn’t in volume, it’s in quality). That value add needs to either not be labour intensive, or leverage skills/values that aren’t easily replicated overseas. So hand making craft cheese is probably good, as is automated factories that process timber into value add product more efficiently than low cost labour countries can do
    – reducing barriers to increasing production, particularly around the RMA and allowing objections from random crazies

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  13. RRM (9,933 comments) says:

    Key will not address this main issue so he is no different to Russell Norman. They’re both just frittering around the edges.

    I’m with you all the way on this thread Baitey, except for ^^^ that comment there.

    If you can’t see any difference between the competent but light hand on the tiller that Key/English have, and the lunatic pie-in-the-sky theories proposed by the clueless “Dr” Norman… well, I’m surprised ;-)

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  14. Colville (2,272 comments) says:

    So the last 4 years of the Klark govt they lost 21,000 jobs? Great work.

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  15. Redbaiter (9,098 comments) says:

    The undeniable reality is that if we are going to manufacture and sell on the global market then the very first things we must offer is quality and price competitive products. If we cannot do this we will not sell anything.

    (Note: Not strictly true. We will sells things if political patronage involved, for example if a country like China sees strategic advantage in currying favour with NZ politicians, they might give them favourable access to markets. However this is not so much the market as it is politics)

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  16. flipper (4,083 comments) says:

    So Mr Pogy Bait….

    In ten (10) bullet points, and no ad hominem, please enlighten the masses here gathered with your prescription for a successful economy.

    Let’s see it before Noon, bait.

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  17. Redbaiter (9,098 comments) says:

    I don’t need ten points, I can do it in 3.

    1. Small government. (lower taxes, fewer regulations)

    2. A moral but unregulated society. (reject Progressive social dogma)

    3. A work ethic. (stop undermining it with government handouts)

    This would not only improve our manufacturing but also improve our general prosperity and overall quality of life.

    At present far too many of our resources are being diverted to efforts that actually worsen our situation, and at present all of our political parties are working against all of those three points.

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  18. RRM (9,933 comments) says:

    PaulL – further to what you said;

    A boss of mine (in a big building material supply company) some years ago when “G.E. Free” was being debated was adamant that New Zealand should latch on to GE Free status/branding.

    His view whatever the benefits of G.E. crops may be, they are about making production in the order of a few percent better here and there, which is great if you’re making vast quantities, but New Zealand isn’t… whereas customers all around the world have proven they want to pay a premium price for “GE Free” / “Organic” produce which is seen as a premium product… and by more customers than just the extreme sandal-wearing, hair jersey weavers.

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  19. KiwiGreg (3,255 comments) says:

    “whereas customers all around the world have proven they want to pay a premium price for “GE Free” / “Organic” produce ”

    Not so. People talk about it but when push comes to shove only a small minority will in fact pay. There are niches but they are small.

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  20. Pete George (23,591 comments) says:

    I haven’t seen any details on the joint manufacturing report but this has been posted:

    The Manufacturing Enquiry report is out, main recommendations are:
    1) a fairer and less volatile exchange rate through reforms to monetary policy;
    2) refocusing capital investment into the productive economy, rather than housing speculation;
    3) lowering structural costs in the economy, such as electricity prices.

    All that says is if we adopt the Green exchange rate control policies and the Green (and now Labour) CGT and the Green and Laboour price control policies that will “fix” manufacturing?

    All they are claiming is that their existing policies will fix manufacturing. I wonder if they will also fix child abuse, smoking and heart disease.

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  21. martinh (1,257 comments) says:

    If it wasnt for the chch quake things would be in the pits.
    I dont think a country which has the only employment growth in the country happening in a quake damaged insurance recovery area can take any pats on the back at all. Its a shame you didnt pick up on that at all much like mainstream media.
    What happens when this rebuild stops?

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  22. skyblue (211 comments) says:

    Seen this from Venezuela:
    http://en.mercopress.com/2013/06/16/venezuelan-government-turns-breast-feeding-into-national-controversy

    Going to ban milk powder for breast feeding. This is all to do with price controls as their closed economy is stuffed, not children’s safety.

    2 weeks it was a shortage of toilet paper shortage in Venezuela. See a pattern here anyone?

    Don’t know about you guys but I would rather live in JKs NZ than LAB/GRE/NZF/MANA. At least I won’t meet captain brown finger everytime I have a dump.

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  23. hj (7,033 comments) says:

    I forget who said it but: “60% of jobs were due to the prperty boom” (prior 2008).

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  24. skyblue (211 comments) says:

    Martinh – shit happens, also we lost a lot of GDP from the Chch earthquakes as well.
    Go to Greece/Spain/Portagal to see real collapsed economies.

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  25. wreck1080 (3,923 comments) says:

    Jeez, DPF shows the exchange rate graph just in the last year when the kiwi is at record levels.

    Using todays exchange rate, the kiwi dollar has only been higher in maybe 1 or 2 months out of the last 20 or so years. Excluding most of the graph is good for DPF but is not accurate reality.

    Manufacturing is going well off the back of a commodity boom and the Christchurch rebuild. The increase in the kiwi dollar is more than offset by massive commodity price rises.

    But I would like to know how true non-commodity export companies are going. These are the products & services than can potentially make huge returns for the country.

    Personally, I’m throwing in the towel as a service exporter within 6 months. While I can still make a buck , it is only 1/2 what it used to be and I can now make more money domestically. I was of more value to the country as an exporter but thems the breaks.

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  26. martinh (1,257 comments) says:

    SkyBlue, im not sure how much gdp was lost from the cchch earthquake as from what i could make out most businesses quickly relocated and there was spending on the earthquake striaght away which was a stimulus.
    Yeah ive being to Spain. Their bust was preceeded by a massive property boom in their biggest cities

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  27. Cunningham (844 comments) says:

    martinh

    “If it wasnt for the chch quake” what a load of bullshit. How do you know what the country would be like without the earthquake? How do you know what decisions or policies would have been implemented had the earthquake not occured?

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  28. Kea (12,841 comments) says:

    1. Small government. (lower taxes, fewer regulations)

    2. A moral but unregulated society. (reject Progressive social dogma)

    Morals are not the business of government, at least not “small government”. On what basis do we reject progressive dogma in preference to conservative dogma ? If that is what we want to do as a society, then all good and well. But it does not need the government to intervene.

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  29. Ross12 (1,432 comments) says:

    Only a couple of weeks ago Nirman was talking of a Carbon Tax. How does fit in with this desire to fix manufacturing ? Hasn’t he looked across the ditch at what Gillard and co’s carbon tax is doing to Aussie manufacturing ?
    He hasn’t got a clue !!!

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  30. martinh (1,257 comments) says:

    Cunningham
    What a load of bullshit you write, you obviously didnt read that chch was the only place where employment rose so read next time before you embarrass yourself

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  31. martinh (1,257 comments) says:

    Im sure even the greeks would be doing ok if they were rebuilding their second biggest city

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  32. nasska (11,578 comments) says:

    1. Small government & 3. A work ethic, are typical Conservative waffle….long on platitudes but short on practical specifics. Equivalent to a wish for paddocks full of fluffy bunny wunnys & pretty daffodils.

    2. A moral but unregulated society…..Creating this I’ve got to see. Perhaps we could get a wizard to devise an incantation to magic one up for us.

    Senile delirious old fool!

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  33. Richard29 (377 comments) says:

    @Fisiani and Skyblue

    There is a very real possibility that the choice in 2014 will be Labour/Green/Mana vs National/NZFirst.

    National just don’t have the numbers to form a govt without an extreme drop in voter turnout on the left. National’s three potential coalition partners Act, United Future and the Maori Party are all seriously dysfunctional and incapable of delivering votes.

    Winston has always said he will try to form a government with the largest party – that means National – John Key has not excluded doing a deal with him in 2014. This is because he knows if he doesn’t do a deal with Winston he won’t be able to make 50%. But if he does then support for the government would start to slide as soon as a post election deal is made and Winston will have the power to bring down the govt at any time he chooses just by withdrawing support and triggering a failed confidence or supply vote.

    I’d hold off on your predictions of strong and successful govt after 2014 Fisiani.

    It’s almost like watching a rerun of Clarks last years – a painful and ignoble ‘Death by Winston’…

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  34. PaulL (5,987 comments) says:

    @martinh: if everyone weren’t going to Chch to get jobs, then there’d perhaps be employment growth elsewhere. (At risk of falling into the lump of labour fallacy).

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  35. martinh (1,257 comments) says:

    PaulL
    No there wouldnt as no one is moving there because they turned down a better offer at home

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  36. martinh (1,257 comments) says:

    Next you will say that if all the people hadnt moved to Australia unemployment would be better here.
    At risk of falling into the lump of Key fallacy

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  37. MT_Tinman (3,203 comments) says:

    A moral but unregulated society

    Moral?

    Who’s morals?

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  38. Kea (12,841 comments) says:

    Moral?

    Who’s morals?

    Red’s. He gets to decide for all of us.

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  39. Cunningham (844 comments) says:

    martinh (129) Says:

    They were forced to do this. It has cost the country billions of dollars to rebuild Christchurch. If the government had they not had this expense, perhaps it would have been channelled into some other kind of stimulus. I don’t know what they would have done and neither do you. Therefore it is a bit rich to blame the government when you have no idea what would have happened if we weren’t face with this cost.

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  40. PhilBest (5,125 comments) says:

    I am surprised no-one has mentioned the late Sir Paul Callaghan’s presentations on the general subject of “value added” in NZ. Watching this video is most definitely not a waste of 45 minutes:

    http://vimeo.com/17345813

    Here’s a thumbnail impression. NZ has a reasonable number of small but high-value manufacturing exporters – like F&P Healthcare, Rakon Industries, Tait Electronics, and Weta Workshops. This general sector makes a significant contribution to the NZ economy that no-one ever credits. No-one even notices the businesses themselves; they don’t take up much space, they don’t “pollute”, and neither do their products take up much space in transit, on the road or train. The odd plane-load of this high value stuff is worth more than a container ship full of sheep carcasses and wool.

    If we grew this sector 5-fold, NZ would be top of the OECD. Actually, we would be becoming more like Germany already is, in the process. But we couldn’t grow farming 5-fold, and it wouldn’t provide “added value” anyway – it would mostly provide low paid jobs. Tourism, too, would mostly provide low paid jobs.

    Note that there is a revival of manufacturing going on in the USA – or rather, parts of it:

    http://online.wsj.com/article/SB10001424127887323549204578315714070017932.html

    There are lessons to be learned, from “which parts”. There is no reason NZ could not provide similar political and fiscal conditions, apart from our own stupidity.

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  41. Redbaiter (9,098 comments) says:

    “Who’s morals?” (sic)

    Hey progs if you don’t think the price we pay for the ongoing support of your derelict and immoral society is a cost that transfers to manufacturing then not only can you not think logically you’re also hopeless at mathematics.

    This country spends $25 billion or more on trying to repair social breakdown. Where do you think that money comes from and who do you think pays for it?

    I’ll tell you. The productive sector, which includes the manufacturing sector. What there is of it.

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  42. exile (34 comments) says:

    The ‘value adding’ in many of our primary exports leave a lot to be desired too. New Zealand dairy products are not prestige products anywhere in the world. Our butter and cheese is the lowest priced product wherever I have encountered it in the UK, Europe and Asia.

    In Singapore, US cheese, and Australian Coon is around 30% more expensive than the Mainland cheese on the shelves. Our ‘value added’ cheeses such as camembert are only offered up as part of the budget line of European brands. New Zealand manufactured camembert and brie is 1/3 of the cost of the French product, and has no link to ‘brand NZ’ apart from a tiny ‘made in NZ’ on the packet.

    Before you start on how Asians don’t eat cheese, this is an international city, with international brands in abundance. The French language high school here has 1800 pupils. We also have a selection of Singaporean, French and Japanese supermarkets with their own buyers and supply chains, and the placement of New Zealand product is consistent. In my camembert example, there were also *12* different French camemberts available at the supermarket, to show you the variety of product on offer. And the same phenomenon of bargain basement NZ product is the same all over Europe.

    New Zealand makes ‘good enough’ products at the cheapest price. We can do a lot better. A lot better.

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  43. nasska (11,578 comments) says:

    exile

    …..”New Zealand makes ‘good enough’ products at the cheapest price.”….

    Is our quality really that far behind our competitors or would better marketing & packaging move us up the food chain?

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  44. Kea (12,841 comments) says:

    Redbaiter (3,476) Says:
    June 17th, 2013 at 4:39 pm
    “Who’s morals?” (sic)

    Hey progs if you don’t think the price we pay for the ongoing support of your derelict and immoral society… blah blah blah

    So who’s morals ?

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  45. Kea (12,841 comments) says:

    I agree with exile. Dairy is supposed to be a major export earner for us and we are a dairying nation. It amazes me how we are not a world leader in high value dairy products.

    (Maybe it is a lack of morals ? ;) )

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  46. Johnboy (16,651 comments) says:

    “Is our quality really that far behind our competitors”

    http://www.google.co.nz/search?q=trekka&source=lnms&tbm=isch&sa=X&ei=kq–UYmWKeWWiAfohIDIDQ&ved=0CAcQ_AUoAQ&biw=1512&bih=878

    Course not nasska. When Wussel takes over we will just give them a bit of a tart up and run them on eco-friendly fuels of course like melted down Whale Oils! :)

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  47. nasska (11,578 comments) says:

    That would’ve been the pits of NZ manufacturing JB. The few that were fitted with the small Cortina motor were bad….the Skoda powered ones were worse than bloody useless.

    But the poor people without overseas funds bought them, paid through the nose for second hand English junk or walked. Surely to God we can make cheese! :)

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  48. Johnboy (16,651 comments) says:

    I had one with an LSD nasska. It took me all over the firebreaks around Wainui before I moved on to a dedicated 4WD.

    They were shit but if you carried a good toolbox they generally got you home. :)

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  49. nasska (11,578 comments) says:

    Kea

    I can see it….”God sanctioned NZ Camembert made in the upright moral capital of the world. No curd touched by unblessed hands….all cheesemakers are certified Godbotherering married men with four children & stay at home wives.”

    The supermarkets of the world will beat down our doors for a product like that.

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  50. Johnboy (16,651 comments) says:

    If you added a few Imams and 72 virgins to your scenario nasska I feel you may have come up with a winner! :)

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  51. Johnboy (16,651 comments) says:

    Finding 72 virgins in Dannevirke may however be difficult! :)

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  52. nasska (11,578 comments) says:

    A tow rope was a good optional extra too JB. Every morning when I go out & start the Landcruiser 70 I give thanks that we were delivered from the piss useless pommie idiots who designed & assembled the shitheaps we used to drive.

    It’s hard at times to appreciate just how far we’ve come in forty odd years.

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  53. nasska (11,578 comments) says:

    It would be lot harder in Eketahuna JB! :)

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  54. Johnboy (16,651 comments) says:

    It’s fucked the drip tray manufacturing business though nasska! :)

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  55. Kea (12,841 comments) says:

    nasska, English cars were the final proof that there is no God :)

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  56. Johnboy (16,651 comments) says:

    Or at least proved that God couldn’t manufacture gaskets and oil seals Kea! :)

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  57. nasska (11,578 comments) says:

    You’re probably right Kea although if there was a God I’ll wager a few bob that he would have heard his name called more often than nowadays…..usually by people trying to start the pieces of junk. :)

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  58. Redbaiter (9,098 comments) says:

    It’s “whose” morals you poor half educated knuckle dragger.

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  59. Kea (12,841 comments) says:

    Red, thanks for the spelling lesson bitch.

    Now answer the question.

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  60. Johnboy (16,651 comments) says:

    I remember when I was ten and we got one of those wooden TV sets made by Phillips in Naenae.

    Picture was shit but the mahogany veneer case always looked beautiful as Mum polished it daily! :)

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  61. Johnboy (16,651 comments) says:

    We had full employment then of course. Austin cars being churned out at Petone. GM building washing machines, stoves and fridges at Petone and cars and trucks at Trentham.

    We even made AC sparkplugs at GM’s Petone plant.

    Don’t even mention the 25,000 employed by the NZR…Christ knows how they could still lose or destroy your freight with numbers like that.

    The glory days will return when Shearer and the AussiGinga get their hands on the controls. Ask any socialist! :)

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  62. nasska (11,578 comments) says:

    Plenty of other examples JB….Seagull outboards….Iron Horse powered motormowers….Ford trucks & tractors….Homelite chainsaws. All overpriced junk foisted on “The Colonies”.

    I’m unsure whether they hated us or were just mind numbingly incompetent. :)

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  63. Johnboy (16,651 comments) says:

    Do you remember the good old days of “overseas funds” nasska when a second hand car was worth more than a new one if you didn’t have assets in Mother England? :)

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  64. exile (34 comments) says:

    @nasska

    For something like butter, it would be relatively straightforward to push the product upmarket using branding and packaging. But for cheese, we are not even playing on the same field as the other countries. We have a tradition of making bulk hard cheese. Our most revered product is a 1kg slab of rubbery mild cheddar.

    If you want to know what the impediment to actually making good product is, you only need to look at the subsequent childish reactions to the idea on this thread.

    The simple fact is, people with money value quality, artisanal process and tradition. Laugh all you like about people who give a damn about food, but those people aren’t paying $10 for a 900g block of mild cheddar, but are instead paying $15 for 200g of British product. Similar ingredients. Similar, if smaller scale manufacturing cost. 5x the retail price. Make those ingredients into a boutique cheese, and then you are looking at 8-15x the retail price.

    I really don’t understand why new Zealanders treat the customers of high value product with such contempt.

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  65. nasska (11,578 comments) says:

    The “no remittance” scheme JB….that regulation did much to set a man apart from his neighbour.

    It was also one time when the cockies of the country had the upper hand. New car every year, farm petrol…..they did well. By the time I got my hands on the front gate of a property Roger & his mates had turned us into paupers. :)

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  66. nasska (11,578 comments) says:

    exile

    The gourmet sector is a hard market to break into but if we can do it with wine I don’t see why we can’t with cheese. It’s amazing that the new generation of cockies aren’t pushing Fontera in that direction.

    Somehow I think we’ve got so used to being price takers, low quality/high volume has become entrenched.

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  67. Shunda barunda (2,983 comments) says:

    The gourmet sector is a hard market to break into but if we can do it with wine I don’t see why we can’t with cheese. It’s amazing that the new generation of cockies aren’t pushing Fontera in that direction.

    Westland Dairy appear to be having a crack at it, much to Fontera’s disgust. The local rag reported that 15-20% of Westlands milk will come from Canterbury next season.

    Value added products may yet come out of our dairy industry,(as they should) and we may have to rely on them one day, because Chile are setting up an identical industry with help from NZers as we speak! :(

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  68. nasska (11,578 comments) says:

    Shunda barunda

    High quality products are probably always going to come from small medium producers. Fontera seems focused on its milk powder market. If they want to stay low return/high volume exporters then they’ve done the right thing….there’s always going to be a market for milk protein.

    This creates its own problems as small producers are really stretched by distance & cost to promote their wares in the high end market.

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  69. Redbaiter (9,098 comments) says:

    “Red, thanks for the spelling lesson bitch.”

    Actually, it’s a grammar lesson.

    “Now answer the question.”

    I should dance to the tune of some half arsed prog troll who hasn’t even been taught rudimentary English grammar?

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  70. Kea (12,841 comments) says:

    Red, we can skip the dance, just answer the question.

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  71. Kea (12,841 comments) says:

    Is it just me or does Red not seem to be getting so many of his prized “up thumbs” recently ? :)

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  72. nasska (11,578 comments) says:

    He seems to be avoiding you Kea. Com’on Baity….your loyal fan club are poised, waiting to award you with ‘up votes. :)

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  73. Kea (12,841 comments) says:

    nasska, maybe he is teaching nice classes in grammar, authoritarianism and how to identify prog fuckwits ? :)

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  74. nasska (11,578 comments) says:

    Probably just got his results back from NZ Dating.. they would have matched him with a computer chair and a jar of Vaseline. :)

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  75. exile (34 comments) says:

    @nasska

    I am sure there has been other market retardation too, with large cheese producers/milk wholesalers treating start up gourmet companies as competitors.

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  76. The Scorned (719 comments) says:

    Red is in fact correct in his solution to this Country’s ills….although the “moral” question is open to debate.

    Far better to have the State simply protect individual rights…then morality takes care of itself…everyone is free to do as they like with the only boundary being where the next persons rights begin…simple and practical.

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