Quote:
Originally Posted by
belgarion
Nope. Its a very real "perfect storm" for NZ.
FYI: It takes about 3-5 years for dairy markets to ratchet up so the flood of additional supply, with the falling prices, is to be expected. The question is tho: how much investment, or over-investment was made by the dairy industry in response to record prices? If it was way too much ... Dairy prices have a long way further to go down before an equilibrium is restored once the marginal producers have been forces out of the market - about another 3-5 years - and this will hurt NZ big time as, unlike the US and the EU, we don't have BMWs or Catapillas and Boeing jets to augment our economy.
A perfect storm for NZ for somebody that is negative geared like you belg. National is already onto it, as is the booming oil & gas industry that is about to explode here. Another reason Labour so dearly wanted to win this time around, to take credit for what is about to happen. Key has made every and I mean everything possible to make this happen. He has been very proactive and must be congratulated. I agree with EZ's post a few days ago with the pollution of our waterways caused by the dairy expansion that has gone on this past couple of years. It should've been looked into 18 months ago and some from of tax added by now to go towards cleaning up our waterways & or education and work habits for farmers.
Modern oil juniors like TAG Oil use the latest techniques and is now a very clean industry. The dairy farms around Taranaki could clean up their act by allowing more drilling in the region. So drill for a cleaner environment - that's common sense Green thinking in your face for you. Corps like TAG & NZEC are getting more oil now from the old and disused drill sites vs. when they were in full production years ago. Add the west coast pool that was discovered two weeks ago, the Canterbury Basin, the East Coast of the N.I & Northland and we have an industry worth three Dairy Farming incomes.
But you are probably going to moan about that too aye!!!
Whats the difference between a lefty and a pizza?
A pizza can feed a family of four.