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


Global Co: Peak Notes Flawed

By Farmers for a Better Dairy Deal

14 June 2001

Global Co: Peak Notes Flawed

Farmers for a Better Dairy Deal have revealed that the “Peak Notes” regime contained in the Global Dairy Co proposal is fundamentally flawed.

“Peak notes” (formerly known as “capacity notes”) have been proposed as part of GDC to help fund milk processing capacity.

Spokesman Mark Masters says that, contrary to the intent of the “peak note” concept, the formula released by Global Co penalises farmers producing milk with a higher milksolids percentage relative to farmers producing the same total amount of milksolids but with a lower milksolids percentage.

“In simple terms farmers sending milk with more water in it are better off.

“What confidence can we have in the planning for GDC when basic elements like this have been botched?

“Further, the whole concept of “peak notes” shifts costs from the factories back on to the farm.

“We have not seen any analysis showing that farmers, as owners of the business as well as their farms, will be better off overall.

“The “peak notes” mechanisms appears flawed like the rest of Global Co”, concluded Mr Masters.

“Even more worrying is that many Global Co directors don’t seem to understand how they work. Many of our directors have certainly struggled to explain them to farmers.”

Further information: Mark Masters 06 765 7544


NZ’s farm milk output peaks in late October / early November based on the timing of calving and spring grass growth. Sufficient milk processing capacity is required to cope with this short-lived peak.

The rationale behind “peak notes” is that farmers with lower peak production profiles should have to contribute less capital to fund milk processing capacity than farmers with high peak production profiles.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. 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>>


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>>