Wednesday, May 25, 2016

Poor Little Petals

The Strayan Feral Gummint has announced subsidies for delinquent dairy farmers.

Approx $580 million worth of concessional loans, in fact.

Muldoon would have been proud.

If history is any guide, not only do these indigent cockies get a below market interest rate on their loans but they get to pay interest only for the first five years.

The concessional interest rate is currently 3.55 per cent (effective 1 February 2016).
This rate will continue to be reviewed on a six monthly–basis and may be adjusted to be in line with prevailing economic conditions.
The concessional rate of interest will apply to the first five years of the loan only, with commercial market lending rates applying to loans beyond the concessional interest rate period.

It is highly likely those farmers now holding their hands out, bought in during the last five years, using vastly over-optimistic budgets.

However, the bit which caught my eye was this:-

"Nationals leader Barnaby Joyce has unveiled a $578.8 million support package for dairy farmers affected by the slashing of prices by processors Murray-Goulburn and Fonterra."

I expect better reporting from The Australian than this crude attempt to blame the dairy companies for a world wide downturn in milk prices.  Here's the corrected version.

"Nationals leader Barnaby Joyce has unveiled a $578.8 million support package for dairy farmers affected by the continuing decline in world market prices for milk products."

Another gem of special interest from the same piece:-

The plan’s key features include $555m in concessional loans and $20m to accelerate an upgrade of irrigation infrastructure in Nationals-held seat of Gippsland.
They need big barrels for their pork in the state of Victoria.


David said...

Once upon a time, in a faraway land, the Dairy farmers owned the co-operatives that processed and sold their milk. The costs were kept down, the profits went to the farmers and all worked well.

Then, the dairy farmers succumbed to the spivs and charlatans that told them they could "unlock the value", could take a big capital gain and get sky high prices forever, all the while paying millions to CEO's and building shiny palaces.

Murray Goulbourn is fucked, not because of declining prices, but because the board paid millions to a drop kick who faked the figures and cost them further millions by pulling out of a purpose built complex because it was too far for him to travel each day.

Adolf Fiinkensein said...

And tomorrow, Fonterra will announce the opening forecast price for 2016/17.

No wonder Joyce got in early with his half billion election bribe.

Adolf Fiinkensein said...

And just to make barnaby Joyce look really stupid, along came Fonterra today:-

Fonterra Co-operative Group Limited today announced an opening forecast Farmgate Milk Price of $4.25 per kgMS for the 2016/17 season, an increase of 35 cents on the forecast for the current season.