Fonterra's opportunities, risks
At Fonterra's recent annual meeting in New Plymouth, chair Peter McBride spoke on the co-op's changing global operating context and how to manage risk. Here's some of what he said.
Fonterra farmers start the new week with some good news – their forecast milk price mid-point for the season has jumped 30c.
The co-operative increased its 2023/24 season forecast farmgate milk price, with the midpoint lifting to $7.80/kgMS, up from $7.50/kgMS.
The forecast range for the season increases to $7.30-$8.30/kgMS, up from $7-$8/kgMS.
Fonterra chief executive Miles Hurrell says the lift in the farmgate milk price comes off the back of five strong Global Dairy Trade events.
“Recently, we’ve seen a lift in demand, primarily from the Middle East and South East Asia, for our reference commodity products and this has been reflected in GDT prices.
“Overall GDT prices are up 10% since our last Farmgate Milk Price update in December, with whole milk powder prices up 11.5% over the same period.
“Looking ahead, the potential impact of geopolitical instability and supply chain disruption on demand from key importing regions remains uncertain.
“We can navigate these dynamics thanks to our scale and our diversification across markets, which provides us with optionality. We are also well placed to continue to get the co-op’s product to customers through our partnership with Kotahi,” says Hurrell.
Fonterra’s forecast earnings guidance for FY24 of 50-65c/share remains unchanged.
Silver Fern Farms chief executive Dan Boulton predicts that 2025 will be a better year for farmers.
Farmers have welcomed the Government’s move designed to limit farm to forestry conversions entering the Emissions Trading Scheme (ETS).
Biosecurity New Zealand has placed a second Otago farm on ‘a restricted place’ notice following the discovery of avian influenza in the region earlier this week.
New Zealand's primary sector is being called on to help shape the future of the country's industry by sharing views and insights about the availability and use of genetic tools.
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