Rumblings from the dairy farming sector are becoming increasingly loud, as both the Government and Reserve Bank (RBNZ) make policy changes that affect the sector.
New Zealand has for years milked its white gold for all it’s worth – milk powder, butter and cheese comprising about a quarter of the country’s merchandise exports by value.
But the effects of a period of intensification on both the environment and banks’ risk profiles have come to a head.
Regulators are making changes, and naturally, many of those affected aren’t happy.
However, with National and NZ First becoming more aggressive in their battle for the rural vote as Election 2020 approaches, and the powerful agricultural and banking lobbies joining forces against the RBNZ in relation to its proposed bank capital rules, the space is getting very noisy.
It’s increasingly difficult to differentiate between valid problems and pure resistance to change.
In an attempt to address some of the concerns being aired, interest.co.nz has summarised the major policy changes underway and provided context around them.
We have simply detailed some of the facts and will leave you to draw your own conclusions.
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