Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ dollar slumps on Fonterra product contamination

NZ dollar slumps on concern about exports after Fonterra food contamination scare

By Tina Morrison

Aug 5 (BusinessDesk) – The New Zealand dollar slumped on concern a food contamination scare at Fonterra Cooperative Group, the nation’s largest dairy company, will hit exports.

The kiwi fell to a month low of 76.99 US cents, and recently traded at 77.15 US cents from 78.31 cents at the New York close and 78.87 cents at the 5pm market close in Wellington on Friday. The trade-weighted index dropped to 73.71 from 75.16 Friday.

The local currency slid after Fonterra, the world’s largest dairy exporter, said on Saturday it had found bacteria which can cause botulism in some of its dairy products, prompting China and Russia to ban products. Dairy makes up about a quarter of New Zealand’s export earnings.

“The kiwi has dropped a cent and a half in reaction so far because it has affected exports,” said Imre Speizer, senior currency strategist at Westpac Banking Corp. “ Countries have suspended exports and the kiwi has had a knee jerk reaction. Until we do some quantitative analysis on exactly what this means for the New Zealand economy, I can’t say how much further the kiwi will go or not go.”

The contamination scare comes five years after the scandal in China over Sanlu Group, which was 43 percent owned by Fonterra and whose milk was found to be laced with melamine. Fonterra revealed in September last year that traces of a fertiliser additive known as DCD was found in some milk samples.

The local currency fell to 58.10 euro cents from 59.70 cents Friday and dropped to 50.49 British pence from 52.16 pence. It slid to 76.40 yen from 78.50 yen and weakened to 86.48 Australian cents from 88.58 cents.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Stats NZ: Annual Goods Trade Surplus At 28-Year High

New Zealand’s annual goods trade surplus reached a 28-year high of $2.2 billion as imports tumbled in the year ended October 2020, Stats NZ said today. “This is the largest annual surplus since the July 1992 year, driven mainly by much lower ... More>>

ComCom: How Real Is That Bargain?

The Commerce Commission urges retailers and consumers to think hard about the bargains being offered as ‘Black Friday’ and Christmas draw near. Black Friday has now overtaken Boxing Day in terms of retail spending, according to data from electronic ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>