Budget pumps $1.3bn into railways but almost forgets farmers while Fonterra delivers the economy-boosting goods

Farmers    who  believed   Labour  when it  said  it wanted  to  double  agricultural  exports may have experienced  a  sense  of  disillusion as  they  absorbed the  messages  of  Budget 2021.  While  the  government  is  allocating $1.3bn to modernise rail infrastructure and  build locos  and  wagons in Dunedin,  it  could find  only  $62m  for  agriculture.

Someone  has  calculated  that  the country’s 40,000 farm businesses, if they shared the $62m, would each receive $1550 or $29 a week (less than the ongoing minimum benefit increase).

This  comparatively meagre  sum   is  to be  applied as  follows:

  • $37m towards a national integrated farm planning system for farmers and growers.
  • $24m towards agricultural greenhouse gas mitigation research and development.
  • $900,000 to collect vital statistics on agricultural production, such as greenhouse gas emissions.

Critics may  conclude   the small outlay for agriculture reflects Agriculture Minister Damien  O’Connor’s influence in Cabinet.  Others  may  see it as  evidence  of the traditional antipathy of Labour MPs  towards  farmers. Continue reading “Budget pumps $1.3bn into railways but almost forgets farmers while Fonterra delivers the economy-boosting goods”

Fonterra’s financial wellbeing and global auction prices are among the dairy sector’s challenges

It’s shaping   up as a  tough  season  for  New Zealand’s  dairy farmers,  who  once  proudly  wore  the  label  of  the  “backbone of the  NZ  economy” , earning  by far the  largest  share of the country’s  export income.

So  what  are  the  problems  confronting  the industry?

Uncertainty in markets, for starters.   Prices  at the latest  Global Dairy  Trade  auction this  week slid  downward for  the fifth  time in  six  auctions.

The  Chinese  economy is under pressure   as  Trump steps up  his tariff  war.  Brexit  is a  threat which  could disrupt  NZ’s  dairy trade to  both the UK and EU markets.

At  home the big  question is whether  Fonterra,  after  racking up  a  $196m  loss last season,  can claw its  way back to profit. Continue reading “Fonterra’s financial wellbeing and global auction prices are among the dairy sector’s challenges”