Dairy plunges again…
Sharp fall in dairy prices
There has been another sharp fall in prices at the latest Global Dairy Trade auction.
The average price dropped 5.9 percent to US$2,276 a tonne.
It is the eighth consecutive fall.
Whole milk powder fell 10.8 percent to US$2,054. It is a crucial product for New Zealand.
Skim milk powder prices fell 5.8 percent to US$1,875 a tonne.
Prices are now at six year lows and have fallen around 50 percent.
Nobody wants to call the world’s gathering economic woes a Kiwi crisis – yet.
After all, it was not so long ago we were the rock star economy, right? And if things pan out well the Budget could be Back in Black this year.
But even if they don’t amount to a perfect storm there are enough dark clouds on the horizon to raise concerns.
The most obvious is the Greek financial crisis playing out this week, which sliced 2 per cent off United States’ stocks and the same or more across Europe on Monday.
The prime minister on Tuesday issued a low-key warning that New Zealand was not immune to the turmoil, and that overseas markets were where the greatest risks lurked.
But John Key said the Christchurch rebuild, the Auckland housing market (who thought that was good news?) and the tourism sector were keeping the domestic economy buoyant.
…meaning our Rock Star Economy is looking more like Nickelback than Rolling Stones right now.
I love how Key was scrambling to claim NZ will be ok economically because of our rebuilding from a natural disaster and the property speculation in Auckland. That’s right folks, an earthquake and a dangerously over-heated market bubble are our saviours.
Key has bent over backwards for farmers, he sold our assets to give them hundreds of millions for more dairy irrigation. That’s more more water, more climate change gases and more pollution destroying that water quality.
Key has put all our cows in one paddock and China have decided they don’t really want another paddock.
How on Earth do NZers think National are better managers of the economy??? When natural disasters and speculative bubbles are all we’ve got, serious questions need asking.
Sadly it won’t be until the property speculating middle class get burnt by the property bubble popping before they start asking those serious questions.