As New Zealand undertakes a world first in taxing farmers for greenhouse gases, economists suggest that it will contribute to a rise in food prices. Emission levies will be implemented from 2025 and will likely see a decrease in the amount of food produced locally and consumers covering the emission costs.
“This will mean higher food prices. There is no free lunch for this policy - it will mean higher meat and dairy prices. Invariably, these costs will end up with household consumers,” said Nathan Penny, Westpac Senior Agri Economist to NZ Herald.
Andrew Hoggard from Federated Farmers has said the levies will “rip the guts out of small town New Zealand,” decreasing sheep and beef farming by 20 percent and dairy farming by five percent.
“Our plan was to keep farmers farming. Now they’ll be selling up so fast you won’t even hear the dogs barking on the back of the ute as they drive off.”
