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

 

NZ's Space Programme: Rocket Lab Launches NASA Satellites

On Sunday, December 16, 2018 UTC, Rocket Lab’s Electron launch vehicle successfully lifted off from Rocket Lab Launch Complex 1 on New Zealand’s Māhia Peninsula. More>>

ALSO:

Conservation Plan: Celebrity Kiwi Released Into The Wild

One of the nation's most famous kiwi was among four released onto Taranaki Maunga... Atara, a five-year-old male, hatched while David Attenborough's cameras were rolling. More>>

ALSO:

Budget Policy Statement: 'Wellbeing Of NZers At The Heart Of Budget Priorities'

“We want a wellbeing focus to drive the decisions we make about Government policies and Budget initiatives. This means looking beyond traditional measures - such as GDP - to a wider set of indicators of success,” Grant Robertson said. More>>

ALSO:

Short Of 2017 Record: Insurers Pay $226m Over Extreme Weather

Insurers have spent more than $226 million this year helping customers recover from extreme weather, according to data from the Insurance Council of NZ (ICNZ). More>>