Milk powder exports to China have dropped 34 per cent in the last year, showing the dangers of National’s ‘one company exporting one product to one country’ exports strategy, says Labour’s Economic Development spokesperson David Clark.
“Not only have milk powder exports to China fallen by a third, overall dairy exports have fallen 25 per cent and exports to China are down 28 per cent in the last year, according to the Overseas Merchandise Trade figures today.
“It comes as Fonterra’s production is dropping by eight per cent and revenue is down 15 per cent, despite a lift in profits. It’s important to note that the recent price rises in the global dairy trade auction are underpinned by Fonterra holding back 41 per cent of volume.
“The Government needs to take steps to diversify the economy so we are not so reliant on dairy exports and the increasingly shaky Chinese market.
“National’s target of increasing exports to 40 per cent of GDP is falling apart. Exports are just 28 per cent of GDP on an actual basis, down from 32 per cent when National came into office. The problems facing China and the dairy industry will make that even worse,” says David Clark.