BIS central bankers’ speeches  Dairy sector payout and international auction prices (USD/metric tonne)  Source: Global Dairy Trade, Fonterra, USDA, RBNZ estimates (Note: Payout figures in chart include dividends)  The drop in global prices is expected to lower dairy farmers’ incomes by NZD 6 billion compared with the 2013/14 season.
This is a necessary condition to (i) bring our workers’ wage levels closer to European standards; and (ii) finance the welfare state in a context of unfavourable demographic developments. The challenge is thus one of activating the ‘levers’ of employment and productivity. Portugal has had historically low levels of capital per worker.