Richard Prosser MP

Spokesperson for Primary Industries
7 JULY 2015

Black Friday for Fonterra’s Farmer-Owners

Fonterra’s revised farmgate milk price forecast to $3.85 per kilogram of milksolids (kg/MS), ends a black week for Fonterra farmers and the New Zealand dairy industry, says New Zealand First.

“Farmers are right to be concerned because this is just another kick in the guts for farming and provincial communities, through the Government sitting on its haunches doing nothing,” says Richard Prosser, New Zealand First Primary Industries spokesperson.

“In fact this government is a fair-weather friend to farmers. Just look at how they’ve been so dismissive lately of dairying’s economic contribution, but when times were good, they actively changed the nature of Fonterra as a farmer-owned co-operative.

“The Dairy Industry Restructuring Act (DIRA) and Trading Among Farmers were failures from the start and the chickens are coming home to roost. Unfortunately not in the government’s henhouse but with dairy farmers left carrying the can and it is not right.

“New Zealand’s dairy farmers need the support of government to get through these tough times, starting with a comprehensive review of the Dairy Industry Restructuring Act (DIRA).

“This review should include Trading Among Farmers as well as the role and functions of a Shareholder’s Council.

“On top of that, why are we not looking to maximise exports to Russia, which is the world’s second largest dairy importer? It seems that prevarication from our own Government is the only thing standing in the way.

“There is more Government can do, like adopting New Zealand First’s Receivership (Agricultural Debt Mediation) Amendment Bill. Replacing Provisional Tax with New Zealand First’s Business P.A.Y.E policy would greatly aid farmers.

“Funding to all Rural Support Trusts needs to be at a level in which people can be put on the road to proactively to visit farmers, especially younger farmers and sharemilkers

“While the lower dollar is great for exports and we welcome it, it does make farmland cheaper to buy. This is why New Zealand First’s Land Transfer (Foreign Ownership of Land Register) Amendment Bill is needed to get facts into the discussion.

“On this Black Friday, our message to New Zealanders on and off farm is simple really, support our dairy farmers. These hard working people may be having a rough time but with the right mix of policies, they’ll be back,” Mr Prosser said.

ENDS

© Scoop Media