Dairy Prices May Cost a Generation of Dairy Farmers

New Zealand First is worried that five-year lows for dairy prices and inaction may cost a generation of dairy farmers.

“We are concerned for farmers and sharemilkers,” says New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters. “The longer this slide continues, down 41.5 per cent since the season started, a generation of farmers is at risk.

“This pressure will grow because the milk price forecast of $4.50 per kilogram of milk solids will go down much further, as New Zealand First has predicted for some time.

“To drop interest rates and the dollar the Reserve Bank Governor should have cut the Official Cash Rate a long time ago instead of having it sitting now at almost twice that of Australia’s.

“In July, when New Zealand takes up the presidency of the United Nations Security Council, we need to prioritise Russia and Ukraine since sanctions have caused this milk glut.

“Sadly Messrs Key and English won’t do a thing about this emerging crisis in primary production returns.

“Even Fonterra has caught this debt disease and that’s a worry. Since the arrival of Fonterra’s CEO, the co-ops debt to equity gearing has worsened from 39.1 per cent to 50.7 per cent. What exactly has that achieved for farmers?” says Mr Peters.

ENDS

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