Scoop has an Ethical Paywall
License needed for work use Register

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Storm brewing for dairy sector?

Damien O’Connor
Spokesperson for Primary Industries

28 August 2012

Storm brewing for dairy sector?

A lower than forecast payout to dairy farmers foreshadows the considerable challenges faced by the sector, Labour’s Primary Industries spokesperson Damien O’Connor says.

“Any further cuts to the milk price payout will put real pressure on the large number of farmers already highly leveraged.

“A large chunk of the payout is required to service a $40 billion industry debt. With ever- increasing costs of production many farmers will be squeezed by payouts below $5.50kg/MS.

“Combine that with the exposure of bank swap loan arrangements, which further increase the costs of finance, and many will struggle to farm profitably.

“The continuation of an overvalued New Zealand dollar and the refusal by the National Government to change monetary policy means our single largest primary export sector faces tough times ahead.

“My concern is that pressure to sell shares under the new Trading Among Farmers structure will grow and ultimately result in the dilution of farmer control of the Fonterra cooperative.

“There are clouds gathering. Let’s hope a perfect storm that could lead to a major shakeup of the dairy industry, isn’t brewing,” said Damien O’Connor.


Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On How Climate Change Threatens Cricket‘s Future

Well that didn’t last long, did it? Mere days after taking on what he called the “awesome responsibility” of being Prime Minister, Christopher Luxon has started blaming everyone else and complaining that he's inherited “economic vandalism on an unprecedented scale” - which is how most of us would describe his own coalition agreements, 100-Day Plan, and backdated $3 billion handout to landlords... More

Public Housing Futures: Christmas Comes Early For Landlords

New CTU analysis of the National & ACT coalition agreement has shown the cost of returning interest deductibility to landlords is an extra $900M on top of National’s original proposal. This is because it is going to be implemented earlier and faster, including retrospective rebates from April 2023. More

Green Party: Petition To Save Oil & Gas Ban

“The new Government’s plan to expand oil and gas exploration is as dangerous as it is unscientific. Whatever you think about the new government, there is simply no mandate to trash the climate. We need to come together to stop them,” says James Shaw. More

PSA: MFAT Must Reverse Decision To Remove Te Reo

MFAT's decision to remove te reo from correspondence before new Ministers are sworn in risks undermining the important progress the public sector has made in honouring te Tiriti. "We are very disappointed in what is a backward decision - it simply seems to be a Ministry bowing to the racist rhetoric we heard on the election campaign trail," says Marcia Puru. More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.