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

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Uploaded by on May 26, 2009

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.

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  • Always good news with Bernard Hickey.

  • Lucky the tsumani in japanese investments will come next month and send our dollar down the drain...

  • It's possible international food prices may run counter to the downward trend....and NZ would be lucky if this were to be the case. But for now, it looks like the major economies are still exporting their deflation by pushing up the exchange rates of smaller currencies like NZ$.

  • Hope the farmers have a look at this after milking ...oooh ...I wonder where the price goes from here ..however NZ used to be all about wool...wonder how thats all going ?

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