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


Global Co: Farmers’ Payout At Risk


‘A Better Dairy Deal’

1 June 2001

Global Co will be looking for $12 to $15 billion of new capital over the next five to 10 years – “that’s the figure from the McKinsey report”, said Mark Masters, on behalf of Farmers for a Better Dairy Deal.

“This is a huge amount of money. At the moment, our leaders tell us we’ve got about $3 to $4 billion of suppliers’ funds tied up in the NZ dairy industry.”

“They want to increase the capital base four to five times!” noted Mark Masters.

“So Global Co will be very hungry for cash – to pay for its big foreign investment plans”.

Global Co’s plan is to buy several very large foreign milk factories, in South America and Asia.

“Apart from borrowing, farmers are Global Co’s only other of source of capital.”

“ In other words, Global Co will retain big chunks of our milk payout to help fund their plans to buy big foreign milk factory”.

“I’m very worried that Global Co is simply too risky for ordinary farmers.”

“ We need to be able to decide for ourselves where to put our money”, said Mark Masters.

“Some farmers might want to invest in foreign milk factories. But others might want to receive higher milk payouts and re-invest that money on the farm.”

“Or some of us might want to put something aside for our retirement – in a super fund or such like”.

“The vital thing is that we should be able to choose – for ourselves”, emphasised Mark Masters.

“Under Global Co, we can’t. They will decide how much of our payout to retain – to fund their foreign milk factory plans.”

“That makes me feel very uncomfortable”, said Mr Masters.

Under the 1999 Mega Co-op plan, farmers would have had control – we would have been able to choose for ourselves whether to invest in foreign milk factories, and if so, how much of our money to invest.

“Global Co must be changed to give farmers control and choice over investing their milk payout money in risky foreign projects”, concluded Mark Masters.


Inquiries to:
Tel: Mark Masters (06) 765 7544 Email:

© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>