High Kiwi Dollar to Wreck Havoc on Drought Stricken Farmers
14 March 2013
High Kiwi Dollar to Wreck
Havoc on Drought Stricken Farmers
New Zealand First says predictions by analysts that the Kiwi dollar will peak at around US87 cents is a forecast for severe pain for farming communities and exporters.
Rt Hon Winston Peters says the impact of the seriously overvalued New Zealand dollar will be multiplied by the water shortage experienced across much of the country.
“The US87 cents forecast is a disaster for farming communities which are already facing financial trouble caused by the drought.
“Farmers are already suffering under the impact of the drought. Stock is being sold off, milk yields have fallen, and grass growth needed to make feed for winter months is either stunted or non-existent.
“When you add in the impact of the overvalued New Zealand dollar – which makes dairy and other farm products more expensive on foreign markets – then the situation looks extremely grim.
“It is a recipe for disaster for farmers and exporters who need to stand up and tell the Government that it must take action over the high Kiwi dollar,” says Mr Peters.