Mycoplasma bovis outbreak could cost a 'significant' amount, Finance Minister Grant Robertson says

The Government is 'very aware of the potential costs of Mycoplasma bovis'. Photo / NZME

The Government's books will take a hit from the Mycoplasma bovis outbreak, Finance Minister Grant Robertson has conceded.

"Clearly the spread around the country increases the potential cost both to farmers and to the Government," Robertson told reporters this morning.

"I think it has the potential to be quite a significant impact."

Regardless of the measures decided on - staged or full eradication, or just management - all would have an impact on the Government's books, he said.

The outbreak was an example of why it was necessary for the Government to stay within its self-imposed fiscal responsibility rules.

"They're about making sure we're in a position to deal with things that are unexpected or economic or natural shocks."

Robertson would not say whether there would be any contingency in Thursday's Budget for the outbreak.

"But in terms of our work plan we're certainly very aware of the potential costs of Mycoplasma bovis," he said.

Agriculture Minister Damien O'Connor yesterday warned there would not be a region free from the cow disease, given the movement of animals as part of normal farming practice.

The Ministry for Primary Industries (MPI) said yesterday that the disease had been confirmed at a Waikato farm.

"It's the sad reality that there will be other farms come back as infected as we continually test properties that are identified as being at risk," O'Connor said.

O'Connor said a decision would be made in the next two weeks on whether to halt slaughtering cows in a bid to eradicate the disease.

He said all infections so far had been linked back to the original infected properties.

"If we can identify all those movements, eventually we can wind that back. "

O'Connor has said changes will be made to the national animal identification and tracing (Nait) system.

Poor record-keeping by some farmers and stock agents is being blamed for the difficulty in tracking the spread of the disease.

Moving day, the annual migration of dairy farmers and their herds, takes place on June 1.

National's agriculture spokesman Nathan Guy said some stock movement was already taking place and farmers needed clear information from MPI.

"There's a huge amount of cattle movements that have already begun. They want to know, can they move their stock and where. MPI needs to come out with a decision."

O'Connor had been too slow to react to the outbreak, he said.

"The clock is ticking, a decision needs to be made, compensation has been woeful, that's been occurring at snail's pace. Farmers are hurting and rural communities are almost on their knees. The other concerns that I have is that banks are circling these farmers as well."

Guy said "a lot" of money would be needed in the Budget and the Government could afford it.

But farmers knew they had to pay their share.

"The industry realises they need to stump up and make a contribution," he said.