Peters said today’s news by Fonterra of reduced profits and a cut in payout from $6 a kilogram of milksolids to $5.30/kg came as a surprise.
“It appears the Government and Fonterra joined forces to keep the facts hidden from voters.
“Taxpayers had a right to be fully informed about the state of the economy and any impacts it may face.
“After all, they are the ones called upon for cash relief when farmers are affected in droughts, floods, etcetera.”
“We went into the election knowing there had been a setback, with a revision in the price down to $6 per kilogram of milksolids,” he said.
“At the time the Prime Minister put this down to the volatility and fluctuations in dairy prices but as Prime Minister he must have been briefed on the forecasts and the global markets. With an election around the corner, he was not forthcoming with the true state of the economy.
“It is not just a big hit for farmers, especially those with new conversions and large mortgages.
“The plunge will have huge repercussions in the regions – when the farmer is worse off spending dries up and rural businesses and towns are the first to feel the pinch.
“And why did Rabobank, a leading rural lender, wait until the first working day after the election to release a survey showing that almost half of our dairy farmers expect the performance of farms to worsen in the next year and that rural confidence is at a two-year low?
“NZ First has been warning that the reliance on milk and log exports into one market – China – would have serious repercussions. But the National Government has had its blinkers on, talking up a rock star economy, and ignoring reality.
“When the Prime Minister said NZ is ‘on the cusp of something great’ NZ First trusts this is not what he meant.”
