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Economic weather report: Lower Fonterra payout means NZ$1 billion less for economy

Posted in News

Bernard Hickey explains in this Economic Weather Report what Fonterra's NZ$4.55/kg payout forecast for 2009/10 means for the economy. The forecast was lower than expected and means about NZ$1 billion less will flow into the economy from dairy exports. It also means farmers will face significant cash flow pressures.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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With the dairy trade war

With the dairy trade war between the eu and the us getting underway, little Kiwi is set to become roadkill. How soon before the banks pull the plug on overleveraged dairy units? Already the land prices are sharply down. Only a few months back farmers were being told to take on more debt, increase output, cash in on the boom. So much for that load of bankers bull.

Fonterra's payout is extensively debated