The plunging dairy payout will hit New Zealand’s provincial towns and farm service industries hard, Labour’s Primary Industries spokesperson Damien O’Connor says.
“Farmers have been bracing themselves for this expected announcement but it will be small towns and those who supply our farms that will bear the brunt of falling dairy prices.
“There are dark clouds on the horizon for the industry, with rising international production levels and commodity wheeling and dealing.
“Unless there is an upward movement in dairy prices next year, pay outs could be even lower still.
“The Government continues to put our economy at risk by relying too heavily on dairy.
“The meat industry is crying out for reform but the Government is refusing to take action.
“National’s simple and single focus has left the agriculture sectors totally exposed.
“Rural New Zealand will continue to suffer for years to come without a more resilient and diversified base,” Damien O’Connor says.