This week on STRAGHT TALK, Mandi McLeod is joined by special guests Jenni Vernon, sheep and cattle farmer from Huntly and Murray Douglas, dairy farmer and Fonterra Shareholders council member.

Fonterra has launched a campaign defending the price of milk, at the same time it has dropped the price of butter and cheese on the local market as a result of falling international prices.

Fonterra controls 90 per cent of New Zealand's raw milk supply, the price it pays its farmers becomes the national price at wholesale and in most cases, retail levels.

“Butter and cheese prices in New Zealand increased in April, however, since then international prices have dipped and we will see these decreases flow through to consumers,” comments Fonterra Brands Managing Director Peter McClure.

“In February 2011, we announced a freeze on the wholesale price of fresh milk in New Zealand. “

“At this stage there are no changes planned for fresh milk prices, but if international milk prices drop significantly we will of course flow these decreases onto consumers.” They say they keep the doctor away, but Nelson apple growers are warned of impending disaster for their industry and face another year of potential losses.

New Zealand businessman John Palmer, speaking at a Nelson-Tasman Chamber of Commerce luncheon said it had got to the stage where many orchards were more valuable without their trees and would be "less of a cash drain growing grass than growing apples".

While high and volatile exchange rates were a "real danger", and the final straw for growers facing another season of poor returns, there were a host of other problems.

The industry is fractured nationally and there is belief that there was little effective co-operation between exporters. Are we looking at our export markets closely enough? Also on this week’s show, the battle between pylons versus wind turbines - why do some farmers feel they are losing out?

Farmers with wind turbines are paid a lease fee to have them on their property, but what happens when a farmer has a pylon or three?

And find out what has our panel hot under the collar with the Straight Talk weekly rant or rave.

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