Government Fiddles While Dairy Prices Plummet

On the anniversary of free milk in schools introduced in 1937, the latest plummet in GlobalDairyTrade prices, as predicted by New Zealand First last night, can be traced to government inaction and poor management by Fonterra, says the Rt Hon Winston Peters, Leader of New Zealand First and Member of Parliament for Northland elect.

“This result is disastrous for our dairy farmers but our dollar is crucifying us being close to parity with the Aussie. It is also at record highs against the Euro when European dairy quotas were lifted yesterday and it is strong against the Greenback,” Mr Peters said.

“Following amendments to the Dairy Industry Restructuring Act in 2012, Sir Henry van der Heyden wrote in Fonterra’s Annual Report: “Now, TAF (Trading Among Farmers) will ensure a stable, permanent capital base for the Co-operative, secures our future and will support progress with our strategy to grow volumes and value”.

“So where is it? Last week Fonterra cut its forecast dividend ripping up what they have repeatedly told farmers that a low milk price means a higher dividend. This is why 500 Fonterra farmer-shareholders are looking to jump ship to Open Country.

“With 576 Fonterra staff on over $160,000 and 32 earn over $500,000, our farmers living off their overdraft deserve much better but, above all, they deserve a government who puts them first,” Mr Peters said.

ENDS

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