Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

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

 

Warning Signs in Fonterra Deal

Rt Hon Winston Peters

New Zealand First Leader

29 AUGUST 2014

FONTERRA DEAL SIGNALS WARNING FOR FUTURE OF NZ DAIRYING

Fonterra’s new deal with a Chinese infant food maker signals New Zealand may be losing control of its dairying future, says New Zealand First Leader Rt Hon Winston Peters.
“Fonterra’s announcement of a joint venture with Beingmate two days ago was launched with the usual ballyhoo and unquestioned acclaim, but it has warning bells all over it,” he told a breakfast meeting of North Harbour Rotary today.

“Fonterra is doing the reverse of two large Chinese state companies, Mengniu-Yili (building a plant at Glenavy in South Canterbury) and Yashili (building a processing plant in Pokeno).

“The Chinese of course know what they are doing and for that they have my respect.

“Why doesn’t Fonterra add value to New Zealand raw material, create jobs in New Zealand, and establish New Zealand as the world-class centre for the development, production and marketing of world class Infant Formula to the world?

“Why are we allowing Chinese companies to enter New Zealand, mix/blend imported milk powder from their Chinese operations with New Zealand dairy powders and trade off Brand New Zealand back in China, claiming it’s made in New Zealand and is a product of New Zealand?

“Why are they using transfer pricing, and inter-company trading to undercut New Zealand-owned companies who are trying to trade and use the China-New Zealand Free Trade Agreement to our advantage, and opening the doors for Chinese companies to set up in New Zealand and use the FTA to China’s advantage.

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.

“While Fonterra denied the China deal was linked to the botulism scare, the announcement came exactly a year after Fonterra and the government said the scare was a false alarm.”

Mr Peters pointed to the “worsening issue of sovereignty and market Brand New Zealand being determined by Chinese officials as to which industrial dairy plants they will recognise.

“In a few year’s time where dairying is concerned, it will not be in control of its own destiny.

“We will be developing raw-based material, sell it as a commodity at the lowest end of its value and be letting Chinese owned and controlled companies add value and earn valuable export earnings, which New Zealand companies should be earning.

“Where does NZTE, MFAT, and MPI stand while all this is going on?“

ENDS

© Scoop Media

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



Gordon Campbell: On The Newshub/Smokefree Twin Fiascos


Here’s a tale of two sunset industries. One has a track record of quality investigative reporting, and sound reportage of the 24/7 news cycle. The other sunset industry peddles a deadly substance that kills and injures tens of thousands of New Zealanders every year, while imposing significant annual costs on the public health system.

Which industry is this government rushing to assist..?
More


 
 


ACT: New Zealand Dodges Dopey Experiment In Prohibition

“Labour’s attempted crackdown on smokers would have delivered criminal groups a near-monopoly over the cigarette trade,” says ACT Health spokesman Todd Stephenson... More


Government: Backs Police To Crackdown On Gangs
The coalition Government is restoring law and order by providing police new tools to crack down on criminal gangs, says Justice Minister Paul Goldsmith and Police Minister Mark Mitchell. “Over the last five years gangs have recruited more than 3000 members, a 51 per cent increase... More


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

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.