The outlook for the New Zealand economy, as dairy prices took another huge tumble overnight, is bleak as New Zealand First has consistently warned.

'On one hand we have an economy at a standstill with a GDP well below 1 per cent per annum, on the other we are now paying the cost of relying on one market – China, for two products, milk and logs,” says New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters.

'The dairying disaster has arrived, as we predicted.

'We told the government time and again New Zealand was over reliant on one market.

'The world is awash with milk after the Russia-Ukraine crisis led to Europe stopping exports to Russia enabling our main buyer, China, to shop around.

'Fonterra and others claim this is temporary. They are wrong as more and more milk is being produced around the world, including production going up in China.

'The government remains silent, expecting the market to deliver, but all we will get is suffering.

'The flow-on to towns and cities from the milk price drop has started. Farmers, many heavily indebted, are tightening their spending,” says Mr Peters.

Source: Office of Wintson Peters.