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The article describes the status of the agriculture sector in New Zealand after the country's government decided to withdraw its subsidy to farmers. It was in November 1984 when the government decided to end all direct support payments to its farmers due to the financial crisis it faces. Twenty five years later, the New Zealand agriculture is described to have a much greater understanding of their market opportunities and have developed farming systems to exploit them effectively.

The article focuses on the target set for Fonterra Brands to contribute to dairy farmers' payout within five years in New Zealand as discussed by managing director Mark Wynne during the South Island Dairy Event held in June 2006. The entire value-add business of Fonterra Brands has been estimated to contribute around 25 cents/kilogram of milksolids. The aim of Fonterra is to see growth in the value add-side of the business through Fonterra Brands. Wynne described the strategy as a transformation journey. INSET: Farmers upset by soy milk ad.

The article discusses how New Zealand dairy cooperative Fonterra has raised its farmgate milk prices to the same levels as those of farmers in the European Union (EU) and the U.S. Topics covered include how Fonterra has implemented a strategy that combines world trade reforms, new market access, and fewer dairy product price support schemes.