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


Interest Rate Hike A Blow To Dairy Farmers

Interest Rate Hike A Blow To Dairy Farmers

Today's quarter-point interest rate rise will cause more pain for dairy farmers already facing the prospect of sharply lower incomes next season, said Kevin Wooding, Chairman of Dairy Farmers of New Zealand (DFNZ).

The increase in the official cash rate to 5.25 percent will add to borrowing costs, and most analysts say it will put more upward pressure on the New Zealand dollar. A sharp rise in the kiwi dollar slashed $350 million from half year revenues of Fonterra Co-operative Group in its most recent half year.

Mr Wooding said he appreciated that the central bank was independent of government and had a hard task. It was trying to put the brakes on domestic consumption which would help stop inflation rising above three percent, the upper limit of its target band.

"The government says there is nothing it can do about the rising kiwi dollar. That is only half true. Local and central government can play a significant role in keeping inflation in check.

"One of the things they must do is stop piling more costs on to farmers and other New Zealanders. Since it came to power the Labour government has added 20 new taxes, while local authorities' rate increases consistently beat inflation," Mr Wooding said.

DFNZ is an industry group of Federated Farmers of New Zealand, New Zealand's premier rural organisation with more than 18,000 members.

© 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>>