The price of milk and butter could rise as a result of the Government's plan to clean up our waterways.
To help meet tougher environmental standards, dairy farmers are being encouraged to focus on quality rather than quantity and aim for high-end consumers.
The Agriculture Minister Damian O'Connor was in Hamilton today to address dairy farmers' concerns as hundreds of them attended a forum.
"What is the Government going to do to help us reposition?" one farmer asked.
Mr O'Connor said there's pressure on the dairy industry but "don't blame Labour - we've only been in for six months".
The minister fronted up to talk about how we can produce food and keep our waterways clean.
"It's not a cap on cow numbers at all. But what Lincoln University and other places have shown - and in fact a few smart farmers - is that you can reduce cow numbers and maintain profitability," he told the forum.
“We've got to make sure New Zealanders earn a decent income so they can afford the food
Ninety-five per cent of dairy produced in New Zealand goes offshore, enough to feed between 40 million and 50 million people worldwide.
But the minister doesn't want those numbers to rise, instead he simply wants to increase the value of our milk and butter.
"So if we can bring that wealth back into New Zealand then we'll all be better off, as long as it's distributed in a fair way," Mr O'Connor told 1 NEWS.
"In terms of the cost of food for New Zealanders, we've got to make sure New Zealanders earn a decent income so they can afford the food."
It's a plan that has the support of Dairy New Zealand.
"How that plays out in the local market we don't know right now. But ultimately it will benefit New Zealand overall by returning more for what we do from scarce resources," said Tim Mackle, Dairy NZ chief executive.
Economist Cameron Bagrie says the Government needs to hurry up, and provide greater detail around what change actually means.
"Review after review seems to be the buzz word around Wellington. That's nice, that's dandy, that's consultative. It's nice to see. But eventually you've got to bite the bullet and get out there and articulate what change is going to look like and what plan B actually is," Mr Bagrie said.
Farmers have already fenced off 97 per cent of waterways and are planting more on the side of waterways.
But the Government says much more needs to be done to make all our rivers swimmable.
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