"Fonterra's decision to freeze the price of milk means farmers will be subsidising the rest of the country..." 20 February 2011

Federated Farmers spokesman Lachlan McKenzie is at his desk (labelled 'Federated Farmers') and says furiously 'Fonterra's decision to freeze the price of milk means the farmers will be subsidizing the rest of the country...... and farmers will want to discuss that!' In the second frame his chair is blasted across the floor by the force of the rage of the little Evans man who shouts 'FINE! - LET'S DO THAT! - Right after we discuss the rest of the country subsidizing farmers' ETS obligations!' Context - The dairy co-operative Fonterra announced the freeze on 19 February 2011 after widespread criticism that milk had become unaffordable for many families. Federated Farmers dairy spokesman Lachlan McKenzie today said he was surprised and confused by the move. "It won't cost Fonterra anything, it'll cost the owners and farmers that supply Fonterra. Farmers were not making as much money as some people thought, Mr McKenzie said. The price freeze came as Fonterra predicted a bonanza payout for the current dairy season of $7kg-$7.10/kg, with 10,463 farmers each expected to receive an average gross payout of more than $800,000. Some industry observers predict average payouts may be closer to $900,000. The high cost of milk came under severe criticism this week, with Northland's Manaia Health primary health organisation chief executive Chris Farrelly saying it was a national outrage that a country which produces 15 billion litres annually could not supply cheap milk to the domestic market. Fonterra and other dairy producers will have to pay a $40 million per annum "ETS tax bill" from 1 July this year - a cost that doubles to more than $80m in 2013. Many dairy farmers believe that the ETS tax is grossly unfair and fail to accept responsibility for the dairying gas emissions problem. (Timaru Herald 21 February 2011)

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