New Zealand’s Greatest Economic Threat is Fonterra
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- Date published:
7:00 am, August 29th, 2023 - 35 comments
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Fonterra represents New Zealand’s largest internal economic threat. And promise.
Fonterra’s milk payout is now forecast to be $6-$7 a kilo of milk solids this season. Outside of interest rate changes, that will be the single largest factor in a depression on our economy and our society.
Fonterra continues to dominate our dairy industry, and our exports.
Fonterra’s revenue at 2022 was over twice that of 18 state owned enterprises and 19 Crown owned entities put together. It has twice the revenue of New Zealand’s only other local business of international scale, Fletcher Building. It and its suppliers are the largest polluter and industrial water user in New Zealand by a country mile. Fonterra’s growth of business dwarfs all other metrics.
The threat and promise Fonterra posed to New Zealand was framed in 2015 by KPMG’s Executive Chairman thus:
Putting it bluntly, our economy is in good shape because of dairy, and in particular Fonterra, and New Zealand needs this to continue.”
In 1998 dairy was worth $4 billion to our economy, and it’s now over $20 billion. Dairy accounts for 1 in 3 of our export dollars, and Fonterra accounts for about 80% of that dairy production and export.
Fonterra as creature of the state has for twenty years required large and sustained support from the state. That support has not been reciprocated with success.
Fonterra was formed because two oligopolistic players and a dairy export regulator demanded that the state legislate their power into a near-monopoly. They convinced the Helen Clark-led Labour administration that only an entity of this scale could take on the giants of Danone, Nestle, and Kerry’s. Having gained that 2001 legislated power, Fonterra had within a decade managed to trash every promise they had made to each other, to the state, to New Zealand and to its overseas partners and customers.
Now, in 2023, New Zealand’s dairy exports are still 80% controlled by Fonterra and are completely reliant on their Chinese markets performing well. Our economy is simply miserable for it. China’s higher-end food and infant nutrition demands are not recovering and as a result neither is New Zealand. Our environment and water system in particular is also simply miserable for it.
We are in this position because the New Zealand dairy industry begged the state for a free trade agreement with China. The Helen Clark government worked exceedingly hard to break open the burgeoning economy of China with the China-New Zealand Free Trade Agreement. What Helen Clark and Phil Goff achieved there was access for dairy producers that has not been equalled in any subsequent New Zealand free trade agreement.
New Zealand government’s gift to the new Fonterra was for the state to break open the burgeoning economy of China in 2008 with the China-New Zealand Free Trade Agreement. This was a global first. What it provided was access for dairy producers to a massive new market on a scale that hasn’t been equalled in any other subsequent New Zealand free trade agreement.
Fonterra rewarded the Clark government with catastrophic investments that poisoned 300,000 and killed many people, and lost them hundreds of millions in written-off investment in the Melanin disaster. Beingmate collapsed, and a full firesale of Fonterra’s international assets occurred through 2019. None of its initial promises to its shareholders to be that great global player have been kept.
The Chairman of the company left after that first set of disasters, and the Chief Executive was replaced.
The 2009 National government doubled down on the Helen Clark formation of Fonterra by rapidly funding a massive expansion of irrigated dairy country throughout the South Island in Canterbury and Otago in particular. This was spending hundreds of millions of taxpayer dollars to prop up the industry Fonterra dominated.
Then someone finally did the analysis that told the truth. Fonterra over the whole of its existence just hadn’t worked and in part was barely viable. This is set out by the Chairman of the Fonterra Shareholders Council in their independent assessment of the financial performance of Fonterra since inception. It covered 11 years of analysis.
Current National Deputy leader was employed by Fonterra as their GM Nutrient Management. She was right at the heart of Fonterra for years. National’s Todd Mueller used to be Fonterra’s head of corporate affairs.
Rather than enable the New Zealand economy to diversify, Fonterra has concentrated since 2017 on shrinking right down into a crouch, and strengthening its controlling power within New Zealand.
On the government’s final Fresh Water National Policy Statement, there were no recommendations for measurable and applicable numeric limits on nutrients vital to make the stated goal of cleaner fresh water. Fonterra through DairyNZ had lobbied the hell out of it.
The next field of concern was Fonterra’s place in New Zealand carbon pollution. This became more clearly framed once New Zealand signed onto the 2015 Paris accords.
In September 2017 the advice of James Shaw and MoE officials to bring dairy and agriculture into account for their emissions were overruled by Ardern and Cabinet.
In September 2019 170,000 people marched in New Zealand urging the government to take much stronger steps about climate change, with agricultural emissions at the forefront. This was New Zealand’s second-largest public protest and equated at the time to 3.7% of its entire population. Going into the Carbon Zero Act over 15,000 public submissions were received.
On October 24 Ardern was at the lectern right next to DairyNZ chief executive Tim Mackle at Parliament, and announced that the government would work together with the agriculture industry to design a ‘world first’ pricing system by 2025. If the group failed to make enough progress, agriculture could still be brought into the Emissions Trading System.
In November 2019 New Zealand became the first country to set greenhouse gas reduction targets for agriculture in its new Climate Law. As a result pressure started to pile on Fonterra internationally. They kind-of supported the law but for them even trying to get to the targets required further research and “the agriculture sector will need to deploy a comprehensive package of breakthrough mitigation activities, including some that are not yet technically and commercially viable.” (Fonterra submission to the 2015 Paris Climate Accord). Fonterra very carefully limited its own emissions target cuts to its operations and processing facilities, even though 90% of its emissions came from its supply chain: the farmers.
Prime Minister Ardern said:
My goal is that we never again have to debate the path that we need to be on as a nation, that we never again see tractors roll up the front steps of Parliament. This agreement will stick and it means instead of debating what we do, we get on with doing it.
But then came the counter-strike.
In July 2021 farmers and rural supporters responded to the multiple resulting reforms with the nationwide Howl of a Protest involving thousands of tractors.
Ardern rapidly retreated from her “nuclear free moment” from this point.
The government response to Fonterra using DairyNZ as a front to ruin its own centerpiece policy, was a friendly review of the Dairy Industry Restructuring Act. In the 20 years of its existence Fonterra’s local dominance has declined slowly from 96% to 80%. The drive for perpetual volume from the founding legislative requirement for Fonterra to take all milk was removed. The requirement for Fonterra to supply New Zealand competitors with milk so that they could start up was also removed. But the deep lock of Fonterra over New Zealand remained: Fonterra was required to continue supplying Goodman Fielder. Fonterra and Goodman Fielder supply almost all fresh milk products to New Zealanders, and those two supply it to New Zealand’s two overwhelmingly dominant supermarket chains Foodstuffs and Woolworths with an 85% market position between them. Near-duopoly upon duopoly.
Rather than hold Fonterra accountable for its own massive national part in political destruction and environmental destruction, Ardern gave it tiny tweaks to its governance. You can see some of this lobbying into government in this Stuff article.
Agriculture hadn’t fitted in to the New Zealand Emissions Trading System, because farmers claimed that if New Zealand’s farmers had been charged the flat tax but international food producers weren’t, they claimed it would render much of New Zealand’s produce uneconomic.
Agriculture was to have its own system separate from the national Emissions Trading System. It would tax the production of unwanted gases, and use the funding gathered to raise funds to run the system and pay farmers for sequestration of land from intensive farming.
The government received the He Waka Eke Noa report in early 2023, made a few changes as it is wont to do … and … the dairy and broader agricultural industries promptly threw its toys out. He Waka Eke Noa was dead.
You can see more detailed agricultural players lobbying, with RNZ’s analysis here.
We are now at a point where dairying is so uneconomic that dairy farmers and workers are making a loss no matter how hoard or how well they produce milk. But Fonterra is stable in its smaller form. Fonterra has shrunk from all international ambition and has continued to drag us all down with it.
Fonterra and New Zealand still have such inextricably intertwined fates that at this point it’s hard to separate them. There’s only one land in New Zealand. But we are dominated in our entire economy by one business: Fonterra.
On current polling an ex-executive of Fonterra as the most powerful corporate in New Zealand could be our Deputy Prime Minister.
The question is surely why successive governments have allowed Fonterra to take hundreds of millions of taxpayer dollars, exploit our environment, sabotage core public policy, fail in most areas of its business, and get away with it.
Fonterra remains New Zealand’s largest economic threat over New Zealand, and one of our largest political threats as well.
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- Who Makes Mazda Cars?Mazda Motor Corporation, commonly known as Mazda, is a Japanese multinational automaker headquartered in Fuchu, Aki District, Hiroshima Prefecture, Japan. The company was founded in 1920 as the Toyo Cork Kogyo Co., Ltd., and began producing vehicles in 1931. Mazda is primarily known for its production of passenger cars, but ...1 week ago
- How Often to Replace Your Car Battery A Comprehensive GuideYour car battery is an essential component that provides power to start your engine, operate your electrical systems, and store energy. Over time, batteries can weaken and lose their ability to hold a charge, which can lead to starting problems, power failures, and other issues. Replacing your battery before it ...1 week ago
- Gaza: Aotearoa Must Support Independent Investigation into Mass GravesTe Pāti Māori are demanding the New Zealand Government support an international independent investigation into mass graves that have been uncovered at two hospitals on the Gaza strip, following weeks of assault by Israeli troops. Among the 392 bodies that have been recovered, are children and elderly civilians. Many of ...2 days ago
- Release: Working together on consistent support for veterans this Anzac Day
Our two-tiered system for veterans’ support is out of step with our closest partners, and all parties in Parliament should work together to fix it, Labour veterans’ affairs spokesperson Greg O’Connor said. ...4 days ago - Release: Penny drops – but what about Seymour and Peters?Stripping two Ministers of their portfolios just six months into the job shows Christopher Luxon’s management style is lacking, Labour Leader Chris Hipkins said. ...4 days ago
- Another ‘Stolen Generation’ enabled by court ruling on Waitangi Tribunal summonsTonight’s court decision to overturn the summons of the Children’s Minister has enabled the Crown to continue making decisions about Māori without evidence, says Te Pāti Māori spokesperson for Children, Mariameno Kapa-Kingi. “The judicial system has this evening told the nation that this government can do whatever they want when ...5 days ago
- Release: Budget blunder shows Nicola Willis could cut recovery fundingIt appears Nicola Willis is about to pull the rug out from under the feet of local communities still dealing with the aftermath of last year’s severe weather, and local councils relying on funding to build back from these disasters. ...5 days ago
- Further environmental mismanagement on the cards
The Government’s resource management reforms will add to the heavy and ever-growing burden this Government is loading on to our environment. ...6 days ago - Release: RMA changes will be a disaster for environmentThe Government is making short-sighted changes to the Resource Management Act (RMA) that will take away environmental protection in favour of short-term profits, Labour’s environment spokesperson Rachel Brooking said today. ...6 days ago
- Release: Labour supports urgent changes to emergency management systemLabour welcomes the release of the report into the North Island weather events and looks forward to working with the Government to ensure that New Zealand is as prepared as it can be for the next natural disaster. ...6 days ago
- Release: Labour calls for New Zealand to recognise PalestineThe Labour Party has called for the New Zealand Government to recognise Palestine, as a material step towards progressing the two-State solution needed to achieve a lasting peace in the region. ...6 days ago
- Release: Three strikes law political posturing of worst kindThe Government is bringing back a law that has little evidential backing just to look tough, Labour justice spokesperson Duncan Webb said. ...6 days ago
- Release: Government cuts unbelievably target child exploitation, violent extremism, ports and airpor...Some of our country’s most important work, stopping the sexual exploitation of children and violent extremism could go along with staff on the frontline at ports and airports. ...6 days ago
- Three strikes has failed before and will fail againResurrecting the archaic three-strikes legislation is an unwelcome return to a failed American-style approach to justice. ...6 days ago
- Release: Environmental protection vital, not ‘onerous’The Government’s Fast Track Approvals Bill will give projects such as new coal mines a ‘get out of jail free’ card to wreak havoc on the environment, Labour Leader Chris Hipkins said today. ...7 days ago
- Ferris – Three Strikes targets those ‘too brown to be white’The government's decision to reintroduce Three Strikes is a destructive and ineffective piece of law-making that will only exacerbate an inherently biased and racist criminal justice system, said Te Pāti Māori Justice Spokesperson, Tākuta Ferris, today. During the time Three Strikes was in place in Aotearoa, Māori and Pasifika received ...7 days ago
- Release: Govt cuts doctors and nurses in hiring freezeCuts to frontline hospital staff are not only a broken election promise, it shows the reckless tax cuts have well and truly hit the frontline of the health system, says Labour Health spokesperson Ayesha Verrall. ...1 week ago
- Fast-track submissions period must be extendedThe Green Party has joined the call for public submissions on the fast-track legislation to be extended after the Ombudsman forced the Government to release the list of organisations invited to apply just hours before submissions close. ...1 week ago
- Release: Progress on climate will be undone by GovtNew Zealand’s good work at reducing climate emissions for three years in a row will be undone by the National government’s lack of ambition and scrapping programmes that were making a difference, Labour Party climate spokesperson Megan Woods said today. ...1 week ago
- Release: Dark day for Kiwi kids as a third of Govt cuts affect themNews that 1000 jobs at the Ministry of Education and Oranga Tamariki could go is devastating for future generations of New Zealanders. ...2 weeks ago
- Release: Alarm as Government signals further blow to school lunchesMore essential jobs could be on the chopping block, this time Ministry of Education staff on the school lunches team are set to find out whether they're in line to lose their jobs. ...2 weeks ago
- Oranga Tamariki cuts commit tamariki to state abuseTe Pāti Māori is disgusted at the confirmation that hundreds are set to lose their jobs at Oranga Tamariki, and the disestablishment of the Treaty Response Unit. “This act of absolute carelessness and out of touch decision making is committing tamariki to state abuse.” Said Te Pāti Māori Oranga Tamariki ...2 weeks ago
- Release: Quick, submit – stop Govt’s dodgy approvals billThe Government is trying to bring in a law that will allow Ministers to cut corners and kill off native species, Labour environment spokesperson Rachel Brooking said. ...2 weeks ago
- Government throws coal on the climate crisis fireThe Government’s policy announced today to ease consenting for coal mining will have a lasting impact across generations. ...2 weeks ago
- Release: Public transport costs to double as National looks at unaffordable roading project insteadCancelling urgently needed new Cook Strait ferries and hiking the cost of public transport for many Kiwis so that National can announce the prospect of another tunnel for Wellington is not making good choices, Labour Transport Spokesperson Tangi Utikere said. ...2 weeks ago
- Release: Cost of living in Auckland still not a priorityA laundry list of additional costs for Tāmaki Makarau Auckland shows the Minister for the city is not delivering for the people who live there, says Labour Auckland Issues spokesperson Shanan Halbert. ...2 weeks ago
- Te Pāti Māori to visit Queensland to strengthen ties with Māori in AustraliaTe Pāti Māori co-leader Rawiri Waititi, and Mema Paremata mō Tāmaki-Makaurau, Takutai Tarsh Kemp, will travel to the Gold Coast to strengthen ties with Māori in Australia next week (15-21 April). The visit, in the lead-up to the 9th Australian National Kapa haka Festival, will be an opportunity for both ...2 weeks ago
- Greens look to fast-track submissions on harmful lawThe Green Party has today launched a step-by-step guide to help New Zealanders make their voice heard on the Government’s democracy dodging and anti-environment fast track legislation. ...2 weeks ago
- Release: Govt should stop making people’s lives harder and build more homesThe National Government’s proposed changes to the Residential Tenancies Act will mean tenants can be turfed from their homes by landlords with little notice, Labour housing spokesperson Kieran McAnulty said. ...2 weeks ago
- Release: Melissa Lee missing in action on mediaThe action Melissa Lee promised to protect democracy and the media sector is missing, Media and Communications spokesperson Willie Jackson said. ...2 weeks ago
- Landlord Government leaves little hope for rentersThe Government’s announcement on tenancy rules prove that it does not care about renters. ...2 weeks ago
- Opportunity to build a more sustainable economyGreen Party co-leader Marama Davidson is calling on all parties to support a common-sense change that’s great for the planet and great for consumers after her member’s bill was drawn from the ballot today. ...3 weeks ago
- Significant step forward in fixing cruel and unjust pastA significant milestone has been reached in the fight to strike an anti-Pasifika and unfair law from the country’s books after Teanau Tuiono’s members’ bill passed its first reading. ...3 weeks ago
- Missed opportunity but NZ will surely one day recognise the right to a sustainable environmentNew Zealand has today missed the opportunity to uphold the right to a clean, healthy, and sustainable environment, says James Shaw after his member’s bill was voted down in its first reading. ...3 weeks ago
- Release: Don’t cut our lunches – clear message sent to GovernmentTens of thousands of people are demanding the Government commits to fully funding free and healthy school lunches. ...3 weeks ago
- Release: Govt makes U-turn on Suicide Prevention OfficeLabour welcomes the Government’s U-turn on the closure of the Suicide Prevention Office, says Labour Mental Health spokesperson Ingrid Leary. ...3 weeks ago
- Pharmac Chair appointed
Hon Paula Bennett has been appointed as member and chair of the Pharmac board, Associate Health Minister David Seymour announced today. "Pharmac is a critical part of New Zealand's health system and plays a significant role in ensuring that Kiwis have the best possible access to medicines,” says Mr Seymour. ...16 hours ago - Taking action on Fetal Alcohol Spectrum DisorderHundreds of New Zealand families affected by Fetal Alcohol Spectrum Disorder (FASD) will benefit from a new Government focus on prevention and treatment, says Health Minister Dr Shane Reti. “We know FASD is a leading cause of preventable intellectual and neurodevelopmental disability in New Zealand,” Dr Reti says. “Every day, ...2 days ago
- New sports complex opens in KaikoheRegional Development Minister Shane Jones today attended the official opening of Kaikohe’s new $14.7 million sports complex. “The completion of the Kaikohe Multi Sports Complex is a fantastic achievement for the Far North,” Mr Jones says. “This facility not only fulfils a long-held dream for local athletes, but also creates ...2 days ago
- Diplomacy needed more than everForeign Minister Winston Peters’ engagements in Türkiye this week underlined the importance of diplomacy to meet growing global challenges. “Returning to the Gallipoli Peninsula to represent New Zealand at Anzac commemorations was a sombre reminder of the critical importance of diplomacy for de-escalating conflicts and easing tensions,” Mr Peters ...2 days ago
- Anzac Commemorative Address, Buttes New British Cemetery BelgiumAmbassador Millar, Burgemeester, Vandepitte, Excellencies, military representatives, distinguished guests, ladies and gentlemen – good morning and welcome to this sacred Anzac Day dawn service. It is an honour to be here on behalf of the Government and people of New Zealand at Buttes New British Cemetery, Polygon Wood – a deeply ...2 days ago
- Anzac Commemorative Address – NZ National Service, Chunuk BairDistinguished guests - It is an honour to return once again to this site which, as the resting place for so many of our war-dead, has become a sacred place for generations of New Zealanders. Our presence here and at the other special spaces of Gallipoli is made ...3 days ago
- Anzac Commemorative Address – Dawn Service, Gallipoli, TürkiyeMai ia tawhiti pamamao, te moana nui a Kiwa, kua tae whakaiti mai matou, ki to koutou papa whenua. No koutou te tapuwae, no matou te tapuwae, kua honoa pumautia. Ko nga toa kua hinga nei, o te Waipounamu, o te Ika a Maui, he okioki tahi me o ...3 days ago
- PM announces changes to portfoliosPaul Goldsmith will take on responsibility for the Media and Communications portfolio, while Louise Upston will pick up the Disability Issues portfolio, Prime Minister Christopher Luxon announced today. “Our Government is relentlessly focused on getting New Zealand back on track. As issues change in prominence, I plan to adjust Ministerial ...5 days ago
- New catch limits for unique fishery areasRecreational catch limits will be reduced in areas of Fiordland and the Chatham Islands to help keep those fisheries healthy and sustainable, Oceans and Fisheries Minister Shane Jones says. The lower recreational daily catch limits for a range of finfish and shellfish species caught in the Fiordland Marine Area and ...5 days ago
- Minister welcomes hydrogen milestoneEnergy Minister Simeon Brown has welcomed an important milestone in New Zealand’s hydrogen future, with the opening of the country’s first network of hydrogen refuelling stations in Wiri. “I want to congratulate the team at Hiringa Energy and its partners K one W one (K1W1), Mitsui & Co New Zealand ...5 days ago
- Urgent changes to system through first RMA Amendment BillThe coalition Government is delivering on its commitment to improve resource management laws and give greater certainty to consent applicants, with a Bill to amend the Resource Management Act (RMA) expected to be introduced to Parliament next month. RMA Reform Minister Chris Bishop has today outlined the first RMA Amendment ...6 days ago
- Overseas decommissioning models consideredOverseas models for regulating the oil and gas sector, including their decommissioning regimes, are being carefully scrutinised as a potential template for New Zealand’s own sector, Resources Minister Shane Jones says. The Coalition Government is focused on rebuilding investor confidence in New Zealand’s energy sector as it looks to strengthen ...6 days ago
- Release of North Island Severe Weather Event InquiryEmergency Management and Recovery Minister Mark Mitchell has today released the Report of the Government Inquiry into the response to the North Island Severe Weather Events. “The report shows that New Zealand’s emergency management system is not fit-for-purpose and there are some significant gaps we need to address,” Mr Mitchell ...6 days ago
- Justice Minister to attend Human Rights CouncilJustice Minister Paul Goldsmith is today travelling to Europe where he’ll update the United Nations Human Rights Council on the Government’s work to restore law and order. “Attending the Universal Periodic Review in Geneva provides us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while ...6 days ago
- Patterson reopens world’s largest wool scouring facilityAssociate Agriculture Minister, Mark Patterson, formally reopened the world’s largest wool processing facility today in Awatoto, Napier, following a $50 million rebuild and refurbishment project. “The reopening of this facility will significantly lift the economic opportunities available to New Zealand’s wool sector, which already accounts for 20 per cent of ...6 days ago
- Speech to the Southland Otago Regional Engineering Collective Summit, 18 April 2024Hon Andrew Bayly, Minister for Small Business and Manufacturing At the Southland Otago Regional Engineering Collective (SOREC) Summit, 18 April, Dunedin Ngā mihi nui, Ko Andrew Bayly aho, Ko Whanganui aho Good Afternoon and thank you for inviting me to open your summit today. I am delighted ...7 days ago
- Government to introduce revised Three Strikes lawThe Government is delivering on its commitment to bring back the Three Strikes legislation, Associate Justice Minister Nicole McKee announced today. “Our Government is committed to restoring law and order and enforcing appropriate consequences on criminals. We are making it clear that repeat serious violent or sexual offending is not ...7 days ago
- New diplomatic appointmentsForeign Minister Winston Peters has today announced four new diplomatic appointments for New Zealand’s overseas missions. “Our diplomats have a vital role in maintaining and protecting New Zealand’s interests around the world,” Mr Peters says. “I am pleased to announce the appointment of these senior diplomats from the ...7 days ago
- Humanitarian support for Ethiopia and SomaliaNew Zealand is contributing NZ$7 million to support communities affected by severe food insecurity and other urgent humanitarian needs in Ethiopia and Somalia, Foreign Minister Rt Hon Winston Peters announced today. “Over 21 million people are in need of humanitarian assistance across Ethiopia, with a further 6.9 million people ...7 days ago
- Arts Minister congratulates Mataaho CollectiveMinister for Arts, Culture and Heritage Paul Goldsmith is congratulating Mataaho Collective for winning the Golden Lion for best participant in the main exhibition at the Venice Biennale. "Congratulations to the Mataaho Collective for winning one of the world's most prestigious art prizes at the Venice Biennale. “It is good ...1 week ago
- Supporting better financial outcomes for KiwisThe Government is reforming financial services to improve access to home loans and other lending, and strengthen customer protections, Commerce and Consumer Affairs Minister Andrew Bayly and Housing Minister Chris Bishop announced today. “Our coalition Government is committed to rebuilding the economy and making life simpler by cutting red tape. We are ...1 week ago
- Trade relationship with China remains strong“China remains a strong commercial opportunity for Kiwi exporters as Chinese businesses and consumers continue to value our high-quality safe produce,” Trade and Agriculture Minister Todd McClay says. Mr McClay has returned to New Zealand following visits to Beijing, Harbin and Shanghai where he met ministers, governors and mayors and engaged in trade and agricultural events with the New ...1 week ago
- PM’s South East Asia mission does the businessPrime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...1 week ago
- $41m to support clean energy in South East AsiaNew Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...1 week ago
- Minister releases Fast-track stakeholder listThe Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...1 week ago
- Judicial appointments announcedAttorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...1 week ago
- Education Minister heads to major teaching summit in SingaporeEducation Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa. The summit is co-hosted ...1 week ago
- Value of stopbank project proven during cycloneA stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...1 week ago
- Anzac commemorations, Türkiye relationship focus of visitForeign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul. “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...1 week ago
- Minister to Europe for OECD meeting, Anzac DayScience, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...1 week ago
- Comprehensive Partnership the goal for NZ and the PhilippinesPrime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr. The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...1 week ago
- Government commits $20m to Westport flood protectionThe Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...1 week ago
- Taupō takes pole positionThe Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...1 week ago
- Cost of living support for low-income homeownersLocal Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners. “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...2 weeks ago
- Government backing mussel spat projectThe Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...2 weeks ago
- Government focused on getting people into workBenefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...2 weeks ago
- Clean energy key driver to reducing emissionsThe Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...2 weeks ago
- Earthquake-prone buildings review brought forwardThe Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...2 weeks ago
- Thailand and NZ to agree to Strategic PartnershipPrime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...2 weeks ago
- Government consults on extending coastal permits for portsRMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...2 weeks ago
- Palestine protesters stage Gaza ‘die-in’ as leaders call for step up in boycotts
Asia Pacific Report A score of Palestine solidarity protesters draped themselves in white shrouds with mock blood in a sombre “die-in” demonstration at Te Komitanga Square — the heart of Auckland, New Zealand’s largest city — today as speakers urged people to take a stronger boycott against Israeli products. The ...36 mins ago - Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra Tackling violence against women will be the sole agenda item for a national cabinet meeting Prime Minister Anthony Albanese has convened for Wednesday. The meeting, held remotely, follows thousands of Australians attending rallies across ...1 hour ago
- Biden hails ‘press freedom, democracy’ but ignores Gaza media death toll of 142The protest outside the White House correspondents’ dinner hotel. Image: Anatolu video screenshot APR More than two dozen Palestinian journalists had called for a boycott of the dinner, writing an open letter urging their American colleagues not to attend. “You have a unique responsibility to speak truth to power and ...6 hours ago
- Fast-track Approvals Bill Presents A Serious Risk To New Zealand Exporters
“Our exporters should, therefore, be deeply concerned that the Fast-track Approvals Bill was not assessed for consistency with any of our free trade commitments prior to being introduced to the House,” says Gary Taylor, Chief Executive of the Environmental ...9 hours ago - 'Immigration changes necessary' – Stanford
Immigration Minister Erica Stanford says work has started on a broader accredited employer work visa review. ...9 hours ago - Green co-leader James Shaw came 'very close' to resigning as minister under Labour govtThe former minister reveals he "ended up storming out" of a Cabinet meeting over disagreements on climate change and biodiversity. ...12 hours ago
- NZCTU Welcomes Corporate Manslaughter Bill IntroductionNZCTU President Richard Wagstaff is calling on all political parties to support the new Member’s Bill from Labour’s workplace relations and safety spokesperson Camilla Belich MP that would ensure negligent companies are held accountable when their employees ...12 hours ago
- US election forecaster with near-perfect track record not ready call 2024 just yetA historian with an uncanny track record of predicting US election winners tells RNZ's Sunday Morning that President Biden looks to be on track for another term, but things could still go very wrong for him. ...12 hours ago
- US election forecaster with near-perfect track record not ready to call 2024 just yetA historian with a track record of predicting US election winners tells RNZ's Sunday Morning that President Biden looks to be on track for another term, but things could still go wrong for him. ...12 hours ago
- Fish and quiz: The many uses of written parliamentary questionsMinisters have to answer thousands of written questions each year - but how are they used, and for what end? ...13 hours ago
- Former Deputy PM Paula Bennett appointed Pharmac board chairThe former National MP "brings a wealth of experience" to the role, David Seymour says. ...15 hours ago
- Inside the home of New Zealand’s greatest crime writer
Ngaio Marsh House is one of Christchurch’s best kept secrets – and contains more than a few mysteries of its own. Trust Ngaio Marsh to leave more than a few mysteries scattered through her house long after her departure. For a start, there’s the curious concrete portal in the garden, ...17 hours ago - ‘Apologies to Dvořák’: How a serenade for strings cemented one of New Zealand TV’s strongest...Appointment viewing has been lost to the mists of time, but memories of Montana Sunday Theatre can still be conjured by hitting play on a particular piece of classical music. “You’re not going to be able to sell it.” Over 30 years on, Karen Bieleski still recalls how the task ...17 hours ago
- An Ode to .. King Luxon
Performance Review King Luxon sat behind His massive polished oak desk. It is Performance Review time. There is a knock on the door. “Enter!” says the King. In steps Minister of Disabilities and Carer Pedicures, Penny Simmonds. “I can explain everything …” she begins. “Fine,” says King Luxon, pressing the ...18 hours ago - In the studio with artist power couple Claudia Kogachi and Josephine JelicichThe pair opened their first fully collaborative exhibition, Nina for Flowers, last Saturday. Gabi Lardies visited their studio to find out who Nina is and what working together was like. ‘It didn’t start out like, ‘This is a show about Nina,’” says Josephine Jelicich, gripping a thermos of peppermint tea. ...21 hours ago
- An ode to the muesli bar, a national treasureThank you, Dr Maximilian Oskar Bircher-Benner, for your brilliant invention. I’m another mid-20s Kiwi who had an OE last year. I hopped on my bicycle where France meets the Atlantic and cycled east. I pedalled through the Loire Valley, down rivers lined with willows and ancient wisteria-draped chateaus. I relished ...21 hours ago
- Government urged to hit the gas on revamp of road user chargesInfrastructure New Zealand is pushing for new road user charges to be brought in quicker to help relieve pressure on strained transport funding. ...1 day ago
- US student Palestine protests against Israel’s war on Gaza inspire global actionAsia Pacific Report From France to Australia, university pro-Palestine protests in the United States have now spread to several countries with students pitching on-campus camps. And students at Columbia and other US universities remain defiant as campuses have witnessed the biggest protests since the anti-Vietnam war and anti-apartheid eras in ...1 day ago
- Former Te Whatu Ora chairperson Rob Campbell criticises Health NZ's 'savings' directi...Rob Campbell said it shows "poor management" and is "frankly irresponsible". ...1 day ago
- ‘To lead is to serve’ – Governor-General to call PM election in Solomon IslandsRNZ Pacific The race to form the next government of Solomon Islands could be a tight one, with no single party emerging from the election with enough seats to govern. Caretaker prime minister Manasseh Sogavare’s Our Party did the best, securing 15 out of the 50 seats in the House. ...1 day ago
- Bryce Edwards – FastTrackWatch: The Case for the Government’s Fast Track BillAnalysis by Dr Bryce Edwards, Democracy Project (https://democracyproject.nz) New Zealand Government’s Fast Track legislation. Many criticisms are being made of the Government’s Fast Track Approvals Bill, including by this writer. But as with everything in politics, every story has two sides, and both deserve attention. It’s important to understand what the Government ...2 days ago
- NZ and Türkiye pledge cooperation during natural disastersThe two countries have "a long history of coming to each other's aid", including after the 2023 Turkish earthquakes, Winston Peters says. ...2 days ago
- Waste not, want not: New series Food Waste Kitchen turns food trash into treasureTara Ward talks to presenter Naomi Toilalo about the new TV show that turns food waste into a three course feast. Naomi Toilalo is standing in the warehouse at Good Neighbour Tauranga, helping unpack the two-and-a-half tonnes of rejected food that will arrive at the community support hub that day. ...2 days ago
- Vaping regulations fight 'immeasurably harder' under coalition – campaignerFocus on Politics - Successive governments have claimed crack downs on youth vaping, but the bending and breaking of rules seems pervasive. ...2 days ago
- Dog of the month: Scout, who is so independent she could be a catScout is our latest Dog of the Month. This feature was offered as a reward during our What’s Eating Aotearoa PledgeMe campaign. Thank you to Scout’s human, Avril, for her support. Dog name: Scout (named after the little girl in To Kill a Mockingbird – she inherited the independent spirit ...2 days ago
- ‘I don’t know if we were brave or stupid’: Megan Alatini on changing reality TVMegan Alatini takes us through her life in TV, including ‘terrible’ daytime TV, the class of Carol Hirschfeld and her most embarrassing TrueBliss moment. When she responded to a vague newspaper ad asking “do you have what it takes to be a popstar?” 25 years ago, Megan Alatini never guessed ...2 days ago
- Behind the counter: Wellington shopkeepersA new exhibition in Wellington showcases the faces behind your local goods and services. Back in 1977, when I was a fine arts student at the University of Canterbury, I took a series of photographs of Christchurch shopkeepers. The photos were for a calendar – a project for my end ...2 days ago
- Iranian Solidarity Group New Zealand Condemns Toomaj Salehi's Death Sentence And The New Aggres...Toomaj and his resistance to tyranny through his songs have become an icon for the youth of Iran, so his sentence has hit the nation hard. Toomaj Salehi is not the first artist to pay the price for standing with the people. ...2 days ago
- Short story: Calf Creek, by Anna ScaifeMy cousin Dylan and I spotted these big eels under the bridge that summer. We watched them lounging under the dark weed, facing into the flow of water, their mouths frozen open. Dylan and I couldn’t stop thinking about those eels. The night we went down to the creek, we ...2 days ago
- Newsroom welcomes the Secret DiaryNewsroom, home of satire. My long-running weekly satirical series The Secret Diary has moved to Newsroom and will appear every Saturday, with Victor Billot’s wildly popular satirical Odes continuing to appear every Sunday. Diaries, Odes – while serious political columnists toil at meaningful opinions and stroke their chins to an ...2 days ago
- I saw ‘The Sign’, and it opened up my eyes: All the fuss around Bluey, explainedTara Ward unravels the many nuanced layers of a cartoon about talking dogs. This is an excerpt from our weekly pop culture newsletter Rec Room. Sign up here. It’s not often an episode of a children’s cartoon has adults sobbing into their sleeves, but that’s exactly what happened this week when ...2 days ago
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Maybe we can sell it to JPMorgan or Goldman Sachs, when the NZ dollar gets in to the '40s'.
Fonterra is classic proof that paying ludicrous salaries for executive 'talent' means nothing.
It has always astounded me that the former Fonterra CEO got an $8 million pa salary for indifferent performance. No-one is worth that amount.
He also headed an organisation whose shareholders did major damage to our waterways, and continue to do so.
Maybe look up other CEO salaries. Farming waterways are incredibly clean. You have no idea what your talking about. Maybe 20-30 years ago there was a problem- now…the cities have the worst water problems and certain catchments like canterbury.
Irrespective of whether this is your belief or propaganda, your big failure is not to back up your ludicrous assertions.
Your whataboutery suggests that you’re trolling and you don’t have any (strong) arguments to bring here.
Over at KiwiBlog you might be able to score a few ‘likes’ to satisfy your troll needs.
Lest I too am accused of being a troll, here are a few sources to back up my earlier remark on the pollution problem. There is a wealth of material:
http://www.nzlii.org/cgi-bin/sinodisp/nz/cases/NZHC/2007/920.html?query=Crafar%20dairy%20pollution
On the credit side, some farmers have made gains by banding together to improve water quality in various catchments. There was also the Taranaki Riparian Management Programme, which showed promise. However, these efforts are outweighed by the actions of the lawbreakers.
Been out in the countryside lately?
"Farming waterways are incredibly clean"
What
"the cities have the worst water problems"
What
Evidence please, or you will be written off as yet another troll and banned. Please. These are massive assertions, you can't just drive-by.
"…the cities have the worst water problems…"
This a statement straight from the 'Dairy New Zealand' playbook. It's also classic 'whataboutery'.
What it fails to acknowledge is that only 1% of New Zealand's waterways are in its cities, and that 99% of its rivers and streams are in rural areas.
Ludicrous salaries means Fonterra f'd up by doing business with corrupt Chinese partners who added melamine to baby formula the upshot of that is Fonterra can't export value added baby formula other than Judith Collins husbands business for some unbelievable reason.The executive who put the Deal together was on $5 million a year. The damage to Fonterra and the NZ economy in the $100's of millions.
Your False claim Helen Clark was responsible for the rapid expansion of Dairy farming in the South Island is not true. Rapid expansion was prevented by Regional councils stopping the expansion of Dairy Farms.Nationals Nick Smith took over the democratically elected Eviroment Canterbury and installing their man allowing unfettered expansion after Ecan had said scientific proof that Canterbury had already reached saturation point with to many Dairy farms also Nick Smiths brothers company was facing large fines for allowing oil from a construction yard they owned flow into the water table after Nick Smiths take over charges were dropped.After the take over of Ecan other Regional councils allowed rapid expansion of Dairying.
"The 2009 National government …"
Learn to read before pouring your righteous heart into print.
Ad I used your essay on Fonterra to convince two friends who were wavering. Cheers.
Read it again; it doesn't say that the Clark government expanded dairy in the SI, it says National did.
The greatest threat to New Zealands economy is the National Party .Nationals last term in power New Zealands economic growth barely made 1% per annum over 9 years driven largely by record migration.So I fact New Zealands economy shrank for 7 of the 9 years National were in power.That would have been far worse if it had not been for the nearly $65 billion capital injection from the Canterbury earthquakes.National say they are better economic managers for the well off but for the 60 to 70% of not so well off its Austerity. While most the money printed and borrowed to prop up during Covid went to the big 4 overseas owned banks who pay no that is zero tax on record profits,Those banks only lent to speculative investments in mainly property including Dairy Farms which benefited the well off.Who is going to pay all the debt the workers on wages and salaries while the well off are paying only7 to 8% on income while average middle income earners are paying 3 to 4 times that a 30% plus tax
.National will figure away to give enough crumbs to the swing voters to regain power.They will push house prices to even more un sustainable highs.Put more user pays onto wage and salary workers no wage rises for health workers, teachers , police, etc will see a bigger exodus of desperately needed skills while National will force wages down by breakingunionand replacing existing workers with migrant workers on lower wages .Same old National protecting the Wolves of Wall St while pretending to be in sheep's clothes!
!
This is the Fonterra Executive who says she will run the country's books? Ooooh Kaaaay.
Fiscally smart? No Governing for all? No. Do we want this to continue? No.
So what happens now? Dairy Farms are losing money and are now costing us in every way. Last thing we need is more of the same.
Hi Patricia. How going? Re Nicola Willis. Apart from her role with Fonterra..there was this : Like minds…..
I wonder if that was about the time that sir Key was actively throwing fear slurs against Labour and Greens?
Oh quite likely PLA. I find her voice hard to take, and her so called "Slip up" regarding Grant Robertson's anatomy was contrived imo.
Nicola Willis keeps on with the "squeezed middle". Guess who is squeezing them, though they would have us believe it is our pay rises, not their profits causing the “squeeze”.
Well said Ad.
The very kiwi corporate coup d'état.
"Breaking open" China is perhaps a bit of a misnomer, in the sense that you make it sound like Beijing was a passive actor here. China bought itself not only milk powder for its middle class, but also bought New Zealand as an economic client – a relationship that is now symbiotic.
Symbiotic my ass.
They buy our dairy, and we buy their manufactured goods. I believe the expression is knowing which side our bread is buttered.
But short of New Zealand developing a new and massive export industry to replace dairy (which would require many years of work, a good deal of luck and the sort of government economic intervention that went out with Muldoon), Fonterra isn't going anywhere, and neither will our reliance on China.
We're nothing to China and they could easily replace Fonterra's products.
China is on course to become the third largest producer of cow milk. Its self-sufficiency rate is around 70-80% so we are very fortunate its hard for them to go higher than that.
Fonterra is slowly recovering in China after nearly wiping out in 2019. But it now represents more than a third of Fonterra's profit and is only in that position because of a decade of catastrophic global investments.
Fonterra is consistently sheltered in NZ by our strong MFAT and NZTE effort, when it needs to diversify more elsewhere.
It may well be too late, at least for 2024.
What ab absolute crock.
Almost took this bullcrapn seriously until I read the words "Prime Minister Adern"
Means as much as she does now… Absolutely nothing.
Fontera is the NRA of NZ.
We are destroying our environment (which hurts our tourism industry in the long run) our drinking water and selling out our sovereignty as a nation that holds power to account just so we can sell cheap low grade milk powder.
Putting all out eggs in china's basket is going to be as big of a mistake as Muldoon getting rid of super, it not worse.
Where are all nzs sheep btw you never see any? Nz used to be known as a sheep farming nation now we're just cows. Our wool exports are dead, we have destroyed so much for milk powder.
For decades our useless leaders have said we need to diversify away from just farming and Noone actually ever has…
The day draws near when dairy of any kind is about as valuable as sand, all around the world, including in China, people are consuming less dairy and more locally made plant based products, what becomes or this milk powder republic on that day?
Relying so much on agriculture is a sign of a weak, backwards economy and new Zealand very well could become just another poor pacific island nation like the ones whose main industry's are sugar.
Our indivual wealth has already dropped substantially, the average was in Australia is nearly a hundred k, the average wage in nz is just 60 something k, we're getting poorer and poorer and it's becoming too expensive to live here.
Unless nz makes massive changes and fast, I either see nz becoming at best a state of Australia or at worst just another poor failed settler state.
The arguments of nz staying a sovereign nation become less convincing every day, but I doubt aussie would want us if we leave it too late.
We're never becoming a state of Australia (our interests are too different). Frankly, Australia itself is already having the problem of divergent interests between the dominant eastern states and Western Australia.
New Zealand has always been agricultural. It's why we were set up – to be Britain's farm. Now we're China's farm. We've never properly industralised, and the attempts to change that ended with with Muldoon's Think Big projects.
(As for sheep? Simple. There's no money in wool these days. If you're farming sheep, it's for the lamb).
What a load of twaddell. Blaming Fonterra for 6 years of Government mismanagement is laughable. Dairy farmers will weather the current storm and come out of it stronger .Global warming is a very big positive for low cost New Zealand milk production in the longer term.
Huh ? I'd say that was a load of "twaddell".
But its really just a load of shit.
"Global warming is a very big positive for low cost New Zealand milk production in the longer term."
What
Ever heard the phrase "extraordinary claims require extraordinary evidence".
The only things that global ecosystem collapse is "a big positive for" are sandbags and bodybags.
You are on another planet.
You joke,of course. Plant science 101 .Heat,Co2,add water and you going to grow a lot of grass .
Get off the grass, Ian.
In your underground Lab maybe ? Actual Scientists
This all of course with the fact that all the extra CO2 is causing massive heat increase on our Planet. Which leads to droughts, storms, floods.
And the extra CO2.. going to our Planets Oceans
Its not all about you..and your grass paddock.
interesting links that mostly support a very bright future for irrigated dairy farming in Canterbury.We can dribble a bit more N on and provide nutrients to allow grass to grow to it's full potential if CO2 levels keep rising.The extra CO2 gobbled up by the grass with the increased photosynthesis will help the planet too.
This El Nino spring has been a cracker
The large corporations in new zealand need to be downsized, they get away with almost anything and manipulate their way to grow stronger bringing down the little people. The mum and dad trying to make a living for their family, from their farm, small business entity, compared to large scale Fonterra, Fletcher etc.
Bring back support for the SME, the backbones that make these large scales work.
New Zealand had its own economy in the past which was well sufficient, can be sustained again
Finally more people can see what's going with the monopolies on New Zealand. Only took 25 years. That's what's dragging New Zealand and it's people down.
Well if the say that they are big as they say they are have they put money aside for a rainy day which it's certainly gonna rain on them or they put all there meat in one basket 🧺