Pedersen sees the light

It seems that Charlie Pedersen of Federated Farmers (here) is urging sheep and beef farmers to persuade meat processing companies Alliance and PPCS to join forces. He is also calling for farmers to supply meat via long term contracts rather than to whomsoever pays the best price at the gate on the day.

Not long ago was the time when Federated Farmers were cheerleaders for the free market madness that destroyed a good proportion of New Zealand's productive sector. Now they see that cooperation gets producers further than competition.

In a world with constrained food supplies (that is where this one is heading) food producers will be creaming it. Farmers on land suitable for grazing sheep look longingly at their neighbours on dairy farms... but they too (the sheep farmers) would be doing very well, too, if the stupid fools who run the industry would run it for medium term gain rather than short term profit.

Small Business Myth

It is often said that small businesses (usually defined in New Zealand as <10 employees) are the biggest sector of the economy.

True enough.

But it is often assumed then that they are the biggest employers. That is false.

Most small businesses are one person operations. Ie. they employ no-one.

http://www.sharechat.co.nz/news/scnews/article.php/a727b8a7

Working for da Man...

The Dompost reports that BNZ employees are being rewarded to sell even more debt to the public. True it is good for the BNZ's business. But it is not so good for people who are sold debt they do not need or knew they wanted.

Buyer beware, and all that, but with house hold debt still growing faster than house hold incomes this cannot be described as socially responsible.

What Elmar Thinking?

Sky City, as reported in the New Zealand Herald made a surprising announcement that it has delivered $11m in savings. Just six weeks after announcing it was embarking on a cost cutting exercise.

I read about this yesterday (no link) and was surprised that they could expect anybody to believe that it was possible.

Turns out it was not true. The the acting CEO Elmar Toime has explained all. He cut his managers budgets. Quote "brought forward future savings and removed some speculative savings".

Elmar: News Flash! Bringing forward future savings is speculative.

Poor old Contact Energy has had a 15% drop in profit according to the Dompost. Electricity prices down, gas and transmission costs rising...

David Baldwin (CEO) said it was a "a pleasing annual result...a good result for the company's shareholders". Optimistic guy! So good they have paid 17cps dividend. Dividends for the full financial year are up 1c.

That might be good for shareholders, imagine if they had made a small profit. Would that have been a great year? Is describing a 15% loss as a good result cruel and unusual punishment of the English language?







It still managed