Rural depression targeted after low milk prices

The report said the price decline had been about increasing supply, as exporters looked to boost production while importing countries focused on enhancing their productivity. Photo / Alan Gibson

A national programme to address rural depression will be developed in recognition of challenging times for farmers including volatility in milk prices.

A one-off funding boost of $500,000 has been committed to help develop a programme that will aim to get farmers talking about mental health.

Health Minister Dr Jonathan Coleman said rural depression was a significant issue, and one that could have very different factors.

"The physical isolation as well as the uncertainties of being reliant on the land creates different pressures to those living in an urban setting."

The Ministry of Health will work with the Ministry for Primary Industries to develop the programme, which is likely to focus on promotion, prevention and early intervention.

It will be run on both a national and local level.

Primary Industries Minister Nathan Guy, who made the announcement with Dr Coleman at the Farmer's Big Breakfast at Fieldays, said farmers were going through challenging times.

"This year is a tough one for many with the ongoing drought on the east coast of the South Island and high volatility in commodity prices.

"Farmers are really good at looking after the land, animals and machinery, but they aren't traditionally as good at looking after themselves.

"It is very important for farmers and their families to realise they are not alone and help is out there."

The most recent suicide rate for people living in rural areas is 12.5 per 100,000 people compared to 10.6 for every 100,000 people living in urban areas, according to information on the Federated Farmers website.

Falling milk prices have put a spotlight on rural mental health.

This month, mental health advocate Gordon Hudson hit out at the Ministry of Health for cutting funding to Like Minds Taranaki, leading to its closure.

Mr Hudson, a former manager at the service, told Radio New Zealand that $127,000 in annual funding was cut last December, despite no alternative services in place.
Today's announcement comes as Fonterra slashes hundreds of administrative jobs to cope with falling global milk prices.

The dairy giant plans to create more marketing roles so it can sell its products better into overseas markets, where it also faces increasing competition from its rivals.

Last year the company had 2590 New Zealand staff paid more than $100,000 or more per year and 17 staff earning more than $1 million, according to its annual report.

Fonterra chief executive Theo Spierings, who earns $4.18 million a year, told media yesterday the company was in the middle of a major review, which began in December, to restructure the company's management team.

It is unclear whether the company, which currently employs 11,500 staff in New Zealand and 18,000 worldwide, will put a freeze on hiring after yesterday's announcement.

Fonterra, the world's largest dairy exporter, expects to increase its payout for the 2015/16 season to $5.25 per kilogram of milk solids, from $4.40/kgMS in 2014/15.
Synlait Milk expects to pay $5.50/kgMS in the upcoming season, up from a range of $4.40-$4.60/kgMS this season.

However, two seasons of below-average milk prices have put pressure on farm bank balances.