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

 

Dairy Restructuring Bill Still Fails Sharemilkers

Dairy Industry Restructuring Bill Still Fails Sharemilkers

The Sharemilkers' Subsection of Dairy Farmers of New Zealand believes that the Dairy Industry Restructuring Bill tabled in Parliament today does not go far enough to address Sharemilkers' concerns.

Chairman Michael Pallesen said: "The industry proposed the removal of legislation and the merger of the major co-op dairy companies is supported by the Government. It is an industry initiative so we feel that the industry and the Minister should appoint an independent Sharemilker Transitional Body to be responsible for the benchmarking of new income streams."

Over 5,400 individual contracts, 42% of all milk supplied, is produced by sharemilkers and will be affected by the change in payment structure.

Today, the Food and Fibre Minister stated in the House three times that all contractual arrangements were the responsibility of sharemilkers and their farm owners.

"The Government cannot change the whole legal basis of the sharemilking industry without taking steps to ensure that no sharemilker will be worse off. The Government's need for this legislation to be rushed through should not cause sharemilkers to be disadvantaged."

The Sharemilkers National Executive considers that the lack of information to negotiate from, and the risk of fluctuating portions of the new payment structure, leave both parties in a precarious position.

"Sharemilkers should not need to negotiate a new contract on misinformation. It is in all parties' best interests that cash-flows be maintained during the transition, thereby reducing the advent of litigation and arbitration on a one by one basis merely because the industry has changed."

Farm owners who are in partnership with sharemilkers are in support of a smooth transition and fairness of payment structuring. Farm owners need sharemilkers as much as sharemilkers need farms to operate their business partnerships on.

"Why not ensure through legislation that the transition period is managed smoothly then let the normal market forces of supply and demand take effect in time!"

The other major issue facing sharemilkers is the opportunity to be shareholders in the new co-op. "In no way do sharemilkers wish to be granted any of their current farm owners shareholding as a result of achieving shareholder status."

There is a good deal of suspicion as to why sharemilkers want to be shareholders when traditionally shareholding is linked to land ownership.

"The nature of the dairy farm business is going to change, so we feel that the ability to purchase and hold shares (not by compulsion) is a logical way that we can participate in the industry's growth."

Mr Pallesen concluded: "The industry as a whole would benefit from this as sharemilkers instantly become a source of investment capital."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Industry Report: Growing Interactive Sector Wants Screen Grants

Introducing a coordinated plan that invests in emerging talent and allows interactive media to access existing screen industry programmes would create hundreds of hi-tech and creative industry jobs. More>>

ALSO:

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: