Dairy chairman deplores rising value of dollar

Press, 18 February 1986, Page 36

Dairy chairman deplores rising value of dollar

PA Wellington The rising dollar has drawn a protest from Federated Farmers’ dairy section chairman, Mr Bruce Tolich. If the New Zealand dollar could sustain a 5c rise against the United States dollar it would cut yearly dairy industry earnings $2OO million, he said.

That would cost farmers about a dollar for every 2kg of milkfat produced.

In mid-December the dollar was worth about US49 cents; today it is worth 53.5 cents — an increase of almost 10 per cent. The Government’s internal deficit was the chief cause of high internal interest rates and dollar value, Mr Tolich said.

“The nation cannot afford the loss of $2OO million from this sector because of a dollar which is boosted by continued Government borrowing,”

he said. “The Government must take urgent steps to reduce its spending which has led to the high internal deficit and its need to borrow internally.” Mr Tolich said he thought most dairy farmers would be able to survive on the reduced incomes. However, the effects of drastically cut farm incomes would inevitably hit rural employment, business, and the larger rural servicing centres.