increase font size
New Zealand First leader Winston Peters says more value could be added to the New Zealand agriculture sector.
New Zealand First leader, Winston Peters, says there could be more value added to the agriculture sector.
Peters, New Zealand’s former deputy prime minister, says both he and New Zealand First party member Shane Jones come from dairy farming backgrounds and therefore understand how critical the sector is to the economy.
“There could be much better value added to them,” Peters said in an interview with Country TV.
He believes that added value could be maximised, “in the interests of our workers, and our businesses, and our economy”.
He claims the move to sell infant powder to China is not a smart one.
“Why aren’t we leading the infant formula sales around the world? All the things you see in Scandinavia or Switzerland and, dare I say it, in places like Singapore, all those added value things, we should have been doing,” he says.
Peters places some of the blame on the industry itself.
“We’ve made some serious mistakes and I’ve always been to Federated Farmers meetings and said ‘Look, Gentlemen and Ladies, I don’t understand what you’ve done to your industry.”
“Remember what happened? Fonterra almost went broke! How could it go broke on a speculative deal in China?” Peters says, seemingly in reference to the co-operative’s deals in China.
In 2021, it was reported Fonterra’s balance sheet would take an $880 million hit after divesting its China farms and joint venture farms in the region as well as reducing its shareholding in Beingmate.
The sale of Fonterra’s Ying and Yutian Farm was completed in April of that year for $552m and the subsequent sale of the Falcon China Farms joint venture was completed two months later for $88m, bringing in a $360m loss on investment.
However, the co-operative’s investment in Beingmate was seemingly worse for its shareholders.
Back in March 2015, Fonterra paid $756m for an 18.8% stake in the infant formula maker but its share value has tumbled since the end of that year, forcing Fonterra to book sizeable write-downs.
According to Northington Partners, Beingmate shares sold over the course of 2020 and 2021 fetched the co-op $273m, resulting in an investment loss of $519m over a six-year holding period.
Peters says Fonterra has now had to be saved by the farming community.
“All of this has been a massive cost,” he says.
“They got fooled, they got flummoxed, and they made a big mistake.”
He says representatives of the farming community need to “stand up as well and start owning up to the mistakes they’ve made, and decisions they could have made much more cleverly”.
Get the full story on Country TV, tonight at 7.30pm on sky channel 81, or get 30 days FREE access, online and on demand at www.countrytv.co.nz.
One of the country's leading experts on China has praised the NZ Government for its handling of the recent incident with China over that country's cyber attack on two of our parliamentary institutions in 2021.
OPINION: Last week's revelation that data relating to New Zealand MPs was stolen amid Chinese state-sponsored cyber espionage targeting two arms of the country’s Parliament could test the long-standing trade relations between the two countries.
The new Minister of Horticulture, Nicola Grigg, says the reason that she came into Parliament was because of her interest in and commitment to agriculture.
New Northland MP Grant McCallum is calling for cross Parliament consensus on long-term issues like water quality.
Former Labour agriculture and trade minister Damien O'Connor hopes the new coalition Governent will continue the direction of travel initiated by his government in terms of ensuring the high reputation of our primary exports.
More bull breeders are using genetic tools according to the latest research.
Females are dominating the veterinary profession worldwide and many farmers are welcoming this change in the composition of the profession, says Britain's Chief Veterinary Officer (CVO) Professor Christine Middlemiss.
A five-year randomised survey of herbicide resistance on New Zealand arable farms has found widespread high levels of resistance - with 71% of farms affected in the worst-hit region - South Canterbury.
OPINION: The recent Federated Farmers / Rabobank 2024 Farming Salaries Report revealed strong growth in farm salaries over the past two years.
The low unemployment environment is one of the key factors driving on-farm salaries higher over the past 24 months, says Rabobank general manager for country banking Bruce Weir.
Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.
