fbpx
Print this page
Tuesday, 14 May 2024 13:25

Monopolised

Written by  Milking It

OPINION: Not everyone will agree with former 'Minister of Everything' Stephen Joyce on his summation of Fonterra when writing recently about NZ's tendency to legislate for monopolies: "We allowed Fonterra to be created, with its near-monopoly over milk collectin, and have since been on a long journey of dissatisfaction with its performance up until quite recent times."

He also mentions the building supplies industry. But Joyce definitely has a point when it comes to the big-four banks: "One of the stark revelation from the ComCom's analysis is that a large bank can hold 15 per cent less capital of its own behind each loan it makes than a small bank must. That puts small banks at an immediate disadvantage to the large ones, as the capital their shareholders provide is effectively regulated to make a lower return."

As he says, the big four are "fat and happy" and unlikely to face serious competition under current law.

More like this

It's all about economics

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a 'please explain' from her former employer Fonterra.

Red line on dairy

OPINION: As India negotiates to open its borders to more global products, dairy is proving a sticky issue.

Farmland security

OPINION: Paranoia about foreigners is at an all-time high in the US and attention is now turning to foreign-owned farmland.

Cuddling cows

OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its cows and instead charge visitors to cuddle them.

Featured

Lincoln Student Awarded Dairy Scholarship

The South Island Dairy Event has announced Jessica Findlay as the recipient of the BrightSIDE Scholarship Programme, recognising her commitment to furthering her education and future career in the New Zealand dairy industry.

Bridge Pā Table Grape Harvest Starts Weeks Early

Budou are being picked now in Bridge Pā, the most intense and exciting time of the year for the Greencollar team – and the harvest of the finest eating grapes is weeks earlier than expected.

Farmlands Posts Strong 2025 Half-Year Growth

Rural retailer Farmlands has released it's latest round of half-year results, labeling it as evidence that its five-year strategy is delivering on financial performance and better value for members.

National

Machinery & Products