Strong uptake of good wintering practices
DairyNZ has seen a significant increase in the number of farmers improving their wintering practices, which results in a higher standard of animal care and environmental protection.
A day of bad news for Fonterra farmers is ending on a high note – the co-operative is paying out $800 million today as capital return to shareholders.
In a statement to NZX, Fonterra confirmed that the capital return was implemented yesterday by way of a court-approved scheme of arrangement under Part 15 of the Companies Act 1993 (Scheme).
“Payments to shareholders are being processed today in accordance with the terms of the Scheme,” the co-op says.
The capital return has been funded by sale of co-op assets including its successful Soprole business in Chile.
Fonterra purchased one out of every six shares held by each shareholder for $3/share repurchased. This is equivalent to 50 cents for each of the six shares.
At the same time, one share held by each shareholder, which is not bought by Fonterra, will be subdivided so that each shareholder will end up holding the same total number of shares as they held before the repurchase.
The capital return provides some relief to Fonterra farmers, who this morning faced a second cut to the forecast milk price in two weeks.
In May Fonterra announced an opening 2023/24 season forecast Farmgate Milk Price range of $7.25 to $8.75/kgMS, with a midpoint of $8/kgMS.
Two weeks ago, it was forced to slash the mid-point by $1 to $7/kgMS. This morning it shaved another 25c of the mid-point.
The co-op says a slump in global dairy prices has forced the revision of the forecast milk price.
On Global Dairy Trade, dairy prices are now at their lowest point since late 2018, while WMP prices are at their lowest point since this time in 2016.
The Government has also come out today with its emissions pricing plan for the agriculture and the proposals have been roundly rejected by farmers.
The Government has shifted farm-level emissions reporting requirements into quarter 4 of 2024; emissions pricing won’t start until two years from now in quarter 4 of 2025.
Work will also get underway to allow scientifically validated forms of on-farm sequestration into the ETS, which can help reduce the cost to farmers.
DairyNZ says the agriculture emissions pricing plan released by the Government today is thoughtlessly timed and lacks the detail dairy farming needs for a viable solution.
DairyNZ chair Jim van der Poel says today’s outcome comes after a significant delay and does not reflect the progress the dairy sector has been seeking.
Prime Minister Christopher Luxon says the relationship between New Zealand and the US will remain strong and enduring irrespective of changing administrations.
More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.
The a2 Milk Company (a2MC) says securing more China label registrations and developing its own nutritional manufacturing capability are high on its agenda.
Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.
As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.
Livestock can be bred for lower methane emissions while also improving productivity at a rate greater than what the industry is currently achieving, research has shown.
OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.
OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.