Fonterra warns on dairy losses

This week's floods have been the worst disaster for dairy farmers since the 1987 Edgecumbe earthquake, says Fonterra.

The giant dairy company yesterday estimated its losses at $5 million and said farmers had been forced to dump more than 10 million litres of milk.

It warned the total cost to dairy farmers would go far higher because of stock losses - typically a cow is worth $800 to $1000 - along with pasture loss and replacement of fences and other farm infrastructure.

Federated Farmers said there were unconfirmed anecdotes of Wanganui sheep and cattle farmers facing serious damage.

The floods have probably wrecked the harvesting of arable crops such as wheat, maize, corn and barley in the Manawatu, and peas in the Wairarapa.

But Hawkes Bay apple growers have been relatively unaffected

Martinborough winemakers and grape growers remain optimistic that their grapes will dry out in time for harvesting, which is more than a month away.

Flood damage to a bridge has forced gas company NGC to shut down a pipeline serving about 6000 customers, including two Watties factories in Hastings.

Production costs and overheads mean the two Watties factories stand to lose $1.2 million. Tranz Rail, which must pay for repairs to its tracks before it sells them back to the Government, is likely to release its damage cost estimate within days.

The floods knocked out several lines, including the main trunk line.

They also derailed a milk train.