Rt Hon Winston Peters

New Zealand First Leader

Member of Parliament for Northland
24 SEPTEMBER 2015

Fonterra Result Shouldn’t See the Silver Top Opened Just Yet

Fonterra’s Full Year results and an upwards revision of its 2015/16 milk price is positive, but a shaky China and a severe El Nino drought could see it slashed.

“While positive to see this season’s forecast milk price increased to $4.60 per kilogram of milksolids (kg/MS), dairy farmers are best to keep to conservative budgets,” says New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters.

“China is not in a good way and El Nino drought could be catastrophic on already stretched balance sheets. The MetService is saying the El Nino this summer and autumn could be the worst in two decades.

“The government is not preparing for it. Infrastructure is on the go-slow while flag designs and bar opening hours get Mr Key’s attention.

“Fonterra should explain why sharemilkers have been excluded from the co-op’s loan offer,” says Mr Peters

“Cynics would say it could be a first step towards revisiting the limits on the Fonterra Shareholders Fund. It starts by increasing the debt owed by farmer-shareholders that can be paid-off by farmers exchanging equity.

“The foreign-owned banks are using stand over tactics to force farmers to sell off assets and Fonterra shares are a huge asset. More so if El Nino drought depresses milk supply. If a farmer cannot produce milk, it is a moot point whatever the milk price is.

“Mr Key has made no secret that he wants Fonterra listed on the NZX and as Silver Fern Farms demonstrates, he will not block foreign control.

“Take Ireland’s Kerry Group, which went from 80% farmer control to only 17% today,” says Mr Peters.

ENDS

© Scoop Media