Fonterra’s announcement that the Milk Price will drop to $7/kg is devastating news for dairy farmers who continue to face escalating costs as a result of Labour mismanagement of the economy, National’s Agriculture spokesperson Todd McClay says.

“With the forecast dairy pay out falling, many farmers face a season of losses with their books going into the red. Rising interest rates and Labour’s excessive regulation of the rural sector means many dairy farmers now need $8.20/kg just to break even.

“The Government must take urgent action to get farmers’ costs down.

“Labour should rein in its ill-disciplined spending and stop their assault on farmers. Six years of piling on costs for farming has increased the price of food and put farmers and the New Zealand economy at risk.

“National is deeply concerned about confidence and mental health in rural New Zealand as farmers continue to suffer a huge amount of pressure.

“National will back farmers with 19 changes in our Getting Back to Farming policy targeted at cutting through Labour’s red tape, bringing down costs, and building an economy that values the importance of our rural sector.”