Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

An Enviable Dilemma

23 June
2000
PR 57/2000

AN ENVIABLE DILEMMA

Commenting on end-of-season payouts and next years projections, Chairman of Dairy Farmers of New Zealand Charlie Pedersen said that "The spectre of some of the best returns the dairy industry has ever enjoyed poses interesting questions on and off farm".

"On-farm, without doubt farmers will welcome the boost in their incomes after a couple of challenging seasons that have seen escalation of deferred maintenance on most farms." Mr Pedersen added that " the additional returns however are significant and pose serious options. Does one contemplate expansion or intensification or should a farmer reduce debt and increase equity to use in that inevitable period of poorer returns that will follow these days as sure as dogs chase milk tankers. ?"

"Off farm these good returns pose much the same question," said Mr Pedersen " The industry is already pursuing the growth strategy and has recently announced proposals to invest in Bonlac in Australia and in Dairy Farmers of America in the USA"

"These and any further expansion and investments will be funded by retentions from farmer payout. Industry may be tempted to retain quite hefty chunks of cash from this and next year's earnings. Mr Pedersen cautioned however that farmers will want and need to be consulted on such retentions " especially bearing in mind that their share values are set at what amounts to a fraction of their real value and they wont necessarily increase despite heavy investment in them by farmers."

"It is a marvellous time of opportunity for our industry with multiple options that farmers need to consider and decide on" concluded Mr Pedersen''

ENDS

For further information: Charlie Pedersen 06 329 9896 or 025 463 480 Kevin Petersen 04 473 7269




© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

up arrow"Steady": GDP Up 0.6 Percent In March Quarter

“Construction was the main contributor to GDP growth this quarter, rising 3.7 percent, on top of a 2.2 percent increase in the previous quarter,” national accounts senior manager Gary Dunnet said. More>>

ALSO:

Gordon Campbell: On Our Wild West Banking Culture

David Hisco’s nine year stint as CEO of the ANZ bank (while his expense claim eccentricities went by unbothered by board oversight) has been a weird echo of the nine years of social neglect by the previous National government... More>>

ALSO:

Privacy & Regulation Issues: Hopes Facebook Currency Will Speed Pacific Transfers

A Tongan community leader is hopeful Facebook's planned digital currency will help end long wait times for money being transferred between New Zealand and the Pacific Islands. More>>

Oil Exploration: Chevron, Equinor Depart NZ

Chevron and Norwegian oil giant Equinor have opted to abandon their joint exploration efforts off the east coast of the North Island... Chevron said the decision not to proceed with the next five-year stage of their work programmes was based on the firms’ broader portfolio considerations and not “policy or regulatory concerns.” More>>

ALSO: