Rt Hon Winston Peters

New Zealand First Leader

Member of Parliament for Northland
4 MAY 2016

Future of Milk And Meat is a Real Futures Market

The latest fall in GlobalDairyTrade reveals the NZX Futures market to be a glorified TAB with New Zealand First backing instead a physical commodities exchange.

“The TAB would be more reliable than the NZX because at least it does not pretend to be something it is not,” says New Zealand First Leader and MP for Northland Rt Hon Winston Peters.

“The NZX ‘dairy futures’ market is a derivatives market so its value is derived from GlobalDairyTrade but crucially, is not of it. That is why the two markets are not synchronised and why the NZX is often more wrong than it is right.

“This is why New Zealand First believes New Zealand needs to establish a physical commodities exchange.

“We are the world's largest exporter of dairy commodities, the largest exporter of crossbred wool and the fibre and largest exporter of sheep meat. We can easily add in being a major global exporter of beef, kiwifruit, apples and seafood too.

“Yet we are allowing others to skim the cream locking our farmers into being price takers rather than price makers.

“We are under no illusion that establishing a physical commodities bourse will be easy but as there are only some 67 of these specialised markets on earth, it is a positive opportunity to realise greater value for our farmers and country,” says Mr Peters.

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