Tuesday, 14 May 2024 13:25

Monopolised

Written by  Milking It

OPINION: Not everyone will agree with former 'Minister of Everything' Stephen Joyce on his summation of Fonterra when writing recently about NZ's tendency to legislate for monopolies: "We allowed Fonterra to be created, with its near-monopoly over milk collectin, and have since been on a long journey of dissatisfaction with its performance up until quite recent times."

He also mentions the building supplies industry. But Joyce definitely has a point when it comes to the big-four banks: "One of the stark revelation from the ComCom's analysis is that a large bank can hold 15 per cent less capital of its own behind each loan it makes than a small bank must. That puts small banks at an immediate disadvantage to the large ones, as the capital their shareholders provide is effectively regulated to make a lower return."

As he says, the big four are "fat and happy" and unlikely to face serious competition under current law.

More like this

It's all about economics

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a 'please explain' from her former employer Fonterra.

Red line on dairy

OPINION: As India negotiates to open its borders to more global products, dairy is proving a sticky issue.

Farmland security

OPINION: Paranoia about foreigners is at an all-time high in the US and attention is now turning to foreign-owned farmland.

Cuddling cows

OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its cows and instead charge visitors to cuddle them.

Featured

National

Machinery & Products

New pick-up for Reiter R10 merger

Building on experience gained during 10 years of making mergers/ windrowers, Austrian company Reiter has announced the secondgeneration pick-up on…

Krone EasyCut B1250 fold

In 2024, German manufacturer Krone introduced the F400 Fold, a 4m wide disc front mower, featuring end modules that hinge…

» Latest Print Issues Online

Milking It

Remembering Bolger

OPINION: Is it now time for the country's top agricultural university to start thinking about a name change - something…

Time for action

OPINION: If David Seymour's much-trumpeted Ministry for Regulation wants a serious job they need look no further than reviewing the…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter