The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson.
“Dairy prices are the lowest since August 2009 and have more than halved since its February 2014 peak.
“This has created an economic black hole of $7 billion from the forecast Fonterra payout cut that will suck in regions reliant on dairy and crucial industries, as well as the Government’s books.
“If the price keeps falling or even stays where it is, Fonterra’s payout will be significantly lower than forecast and the economic black hole even bigger.
“The lion’s share of the milk price pain will be felt in regions that National is neglecting. Many small communities are now mainly reliant on dairy farming. We want the dairy industry to thrive but it isn’t good for farmers to have to carry the much of the burden of economic growth on their own.
“New Zealand needs a modern, diverse economy that creates well-paying jobs across all industries. This Budget must show a plan to get there,” Grant Robertson says.