increase font size
Labour's primary industries spokesman Damien O'Connor.
Conflicting messages from Fonterra and market analysts is causing grief to dairy farmers.
That's the view of Labour's primary industries spokesman Damien O'Connor who says that, on one day alone, Fonterra chair John Wilson was saying the market should pick up at the end of the year, while HSBC analysts were saying there is no chance this is likely to happen.
O'Connor says farmers who want to make better long term decisions are getting messages that are most alarming because they need a clear steer.
"While of course it is hard to predict the medium term market situation, the analysts and the farmers who own the company pretty much need to be on the same page when it comes to advice, and that is not happening," he told Rural News.
"Fonterra hasn't helped with its poor communications to farmers and the wider public. I have seen statements that are hopeful rather than helpful and I think farmers are getting a little tired of that and are seeing through it."
O'Connor says Fonterra has to speak out of both sides of its mouth given that it's talking to investors and unit holders on the one hand and to farmer suppliers on the other.
He believes farmers need to take a very conservative strategy in their businesses. Farmers who have already wound back their costs should continue to do so and others who haven't should do so immediately.
"I [favour] the long term projections by economist Peter Fraser that a $5.00 payout is the norm, plus or a minus a dollar. This means in a good year a $6.00 payout and in a bad year $4.00 and this is probably the paradigm farmers should be working in."
O'Connor believes the dairy industry is in for a major restructure and says there are indications that land prices will fall 20-40%.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…
