Soaring dairy debt worries banks

Soaring dairy debt worries banks

Dairy debt is soaring; it's estimated to be sitting at about $40 billion.

As woes in the sector continue, there are worries the banks may potentially be at risk of huge defaults.

ASB is feeling the heat with its loans to farmers, increasing its overall impairment provisions by 46 percent to $130 million.

Massey University Agri-business expert Dr James Lockhart spoke to Paul Henry this morning.