To be more accurate - by removing subsidies, NZ farmers became more efficient and sell their products at the world price, which is quite often overseas.

Subsidies and/or tarrifs always distort the market and have unintended consequences.

Not sure why you say 'more accurate'. What you state is what I implied. I hope this was clear.

What removing subsidies do is unleash the potential. Lots of farming communities that live with subsidies are convinced that removing them is a dooms day scenario.

However evidence often doesn't support this. Japan used to protect its market for beef. Then this was forced to be opened by the US. Japan farmer then realized that their specialization was high quality beef. And now Japan is globally famous and exports lots of high quality beef.

Removing subsidies can lead to structural changes and consolidation, but it can also have lots of positive effects.