The myth of New Zealand's economic backbone
Anna Chrichton's brilliant cartoon sums it up. I don't know how often I hear that farming is the backbone of the New Zealand economy and, if that is the case, no wonder we are struggling to stand economically upright at present. The problem with agriculture is that most New Zealanders get little value from the sector. While it earns around 85% (dairy is 30%) of our export income it only adds only 5% to our total GDP. It employs just 5% of the workforce and contributes a measly 1% of total tax income . The income generated mainly goes to the likes of Fonterra (15 staff earn over $1 million pa), various corporates (many overseas owned) and increasing equity for farm owners who pay minimal tax. Total farm debt was almost $65 billion at the end of 2025 that helped feed the $7.5 billion net profit for our Australian owned banks. New Zealand exports are mainly raw and semi-processed goods sold in commodity markets and those buying them make even more money from adding further va...