Rt Hon Winston Peters
New Zealand First Leader

3 December 2014

National Does Not Care About Dairy Farmers

More needs to be done to relieve pressure on the dairy industry, says New Zealand First Leader Rt Hon Winston Peters.

“With the latest GlobalDairyTrade result certain to see Fonterra slash its milk price payout forecast to well under $5 per kilogram of milksolids (kg/MS), why has Fonterra spun its unrealistic milkprice forecast?

“Even Federated Farmers has said Fonterra sticking to a $5.30 kg/MS milkprice forecast is silly.

“It just confirms why we had a General Election in September and not last month,” says Mr Peters.

“Bad news for dairy farmers ought to see the dollar fall but their economic orthodoxy isn’t working. Instead, it’s at 77 cents against the Greenback and no amount of huffing and puffing by the Reserve Bank Governor will blow the Kiwi dollar down.

“This government refuses to wake up to the fact its monetary policy no longer works. New Zealand First warned the Federated Farmers conference in July that things were turning sour. Maybe now they’ll understand why.

“Only one party wants to put New Zealand’s dairy farmers first and that starts by amending the Reserve Bank Act so that farmers and exporters come first over Grey Lynn’s latte set.

“This government loves a high dollar because it creates an illusion of wealth by making televisions, cars and petrol cheaper. The Prime Minister does not care that exporters are being crucified as a result.

“DairyNZ says the breakeven point for most dairy farmers is $6 kg/MS. At a possible payout of $4.80 kg/MS or lower this means a loss of something like $167,000 for most farms; upwards of $2 billion across the sector.

“Our dairy industry will be working for Australian owned banks and not for their families or New Zealand.

“Yet Mr Key can find tens of millions for ridiculous flag referendums but won’t reinstate rail from Gisborne to Napier, properly fund the calibration of Overseer or have ‘Gigarural broadband.’

“Where’s the funding for the Rural Support Trusts to help with farm budgeting and counselling let alone rural mental health services. Need I mention it is also getting suspiciously dry in some key farming areas?

“Farmers can thank their lucky stars that low international fuel prices are preventing an economic catastrophe.

“Given there’s a direct correlation between the price of crude oil and fertiliser, let alone fuel, all it takes is events in the Middle East to deteriorate before this house of cards implodes,” says Mr Peters.

ENDS

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