Rt Hon Winston Peters
New Zealand First Leader
Member of Parliament for Northland
4 AUGUST 2016

Dairy Price “Rebound” Welcome But Long Row to Hoe

While the first major lift in Whole Milk Powder for the 2016/17 season is welcome, New Zealand First says Fonterra is not doing nearly enough to reduce its dependency on China.

“Wholemilk powder prices rising 9.9% to US$2,265 a metric ton will be of huge relief to Northland farmers, but they’ll be equally concerned about a rampant Kiwi dollar eroding any gain,” says the Rt Hon Winston Peters, Leader of New Zealand First and Member of Parliament for Northland.

“The Kiwi dollar has leapt US3 cents since the new season began on 1 June and this is costing exporters. The dollar is up because the government is using mass low value immigration as economic stimulus for Auckland – the last place that needs it. The crisis in dairy prices is compounded by the overvalued dollar.

“Of real concern is the way National has banked the farm on the Chinese market but only yesterday, Zespri reported much tougher border clearance in China. Controls that will likely hold up vital wool, meat and dairy exports.

“This is because we don’t want dodgy cheap Chinese steel being dumped in our market. China’s reaction should serve as a big warning for Silver Fern Farms shareholders.

“Yet Fonterra is missing open goals in South East Asia for branded fresh liquid milk products. Especially as extended shelf-life technologies makes shipping fresh milk feasible.

“It is appalling that in Thailand, the Japanese milk brand Meiji has over 50% market share of fresh liquid milk. In Malaysia, Theo Spierring’s old company, Royal FrieslandCampina, dominates fresh milk through its Dutch Lady brand.

“So what does Fonterra offer in Malaysia? The clichés of butter, cheese, as well as UHT milk, cream and powder – and it begs this question, what on earth has Mr Spierings done for the many millions he has been paid?” Mr Peters asked.

ENDS

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