Federated Farmers vows to hold banks accountable after complaint dismissed
Federated Farmers is vowing to keep the big banks accountable for their actions and to continue pushing for meaningful change in the rural lending sector.
Federated Farmers is joyed by Fonterra Cooperative Group signing a conditional offer to purchase the milk processing assets of New Zealand Dairies.
If approved by the Commerce Commission and with that company in receivership, it will deliver certainty to affected farmer-creditors.
"This is an unexpectedly good bolt out of the blue, " says Willy Leferink, Federated Farmers Dairy chairperson.
"It may surprise those outside of the industry but we thought Fonterra was an unlikely contender for NZ Dairies. We now know Fonterra sees the Studholme dairy plant as complementary to its new $500 million facility being built at Darfield.
"So here we have a formerly Russian owned factory coming into New Zealand hands.
"While the sale is a commercial deal and is subject to Commerce Commission approval, some financial pain for creditors seems sadly unavoidable.
"Fonterra is preferable to a hard-nosed corporate buying these assets for the regulated milk it would secure. Such an outcome would treat farmer-suppliers as just another input.
"So this deal strongly vindicates the cooperative business model.
"Fonterra Cooperative Group will give former NZ Dairies farmer-suppliers milk contracts for the current season. For the next six years the door is open for these suppliers to share-up in the coop. It is a genuine path back to shared ownership in the means of production.
"Eyes now turn to what can be salvaged for creditors of NZ Dairies. We know there are some sharemilkers seriously affected by the receivership while farm balance sheets will take a hit.
"I have personally spoken to the major lenders and stressed the need to work with affected farmers and sharemilkers.
"If you are a member of the Federation, you can also call 0800 FARMING (0800 327 646) to speak to our legal and employment law teams," Leferink says.
New Zealand milk production is off to a strong start, with the first month of the 2025/26 dairy season recording a whopping 17.8% jump in milk production, compared to the previous season.
With adverse weather set to rain down on the Top of the South, the Bay of Plenty and parts of Northland, Agriculture Minister Todd McClay says farmers, foresters, and growers need to prepare for possible challenges.
Keep up with innovation and e-commerce in China or risk losing market share. That was the message delivered at the China Business Summit in Auckland this month.
Meat Industry Association (MIA) independent chair Nathan Guy says getting meat processors involved has been a shot in the arm for the sector's key marketing initiative into China, Taste Pure Nature.
Listed carpet manufacturer, Bremworth is undertaking a $6 million expansion at its Napier plant more than two years after the site was heavily damaged by Cyclone Gabrielle.
Federated Farmers is vowing to keep the big banks accountable for their actions and to continue pushing for meaningful change in the rural lending sector.
OPINION: Will synthetic milk derail NZ's economy?
OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a…