‘Cow cockies’ the cause of headaches not Jafas

‘Cow cockies’ the cause of headaches not Jafas

Auckland’s leading retailing district says a “bovine bonanza” in New Zealand’s rural economies is fuelling the Reserve Bank’s concerns about consumer spending, not Auckland shoppers.

The comments follow Fonterra’s announcement today that its latest milk solids payout is higher than forecast, with some economists expecting the 2007/08 payout to be much more.

“Given Fonterra has over 11,000 farmer shareholders, today’s announcement is great news for rural areas. Dairy farmers will be in a better position to buy a new Holden, get the kitchen done up, and buy the kids some new stuff. I should know I grew up on a Taranaki farm,” said Cameron Brewer, general manager of the Newmarket Business Association.

“One thing’s for sure it’s not the Auckland shopper that’s fuelling inflation, yet every time Dr Bollard ratchets up interest rates it is the Auckland home owner who is penalised more than most.

“Statistics New Zealand’s figures for April revealed the largest monthly decline in overall retail activity since February 2004, with May’s figures not much better. What’s more since then all the anecdotal evidence is pointing to June and July being even tougher for Auckland retailers.

“Rest assured consumer spending does not need to be dampened down in Auckland. This time it’s not the Jafas who are dreaming up ways to spend their money, it’s their country cousins,” said Mr Brewer.

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