Why Fonterra accepted defeat in the dairy aisle
OPINION: Fonterra's sale of its consumer dairy business to Lactalis is a clear sign of the co-operative’s failure to compete in the branded consumer market.
NZ dairy farmers need to keep the focus on the cost of production, because New Zealand is the only system in the world that can live through the current volatility, says Fonterra chief executive Theo Spierings.
"I know it's not nice but the scene in Europe is much worse than what you see here because their cost price is almost double," Spierings told Dairy News.
The middle to long term prospects are "absolutely good", he says.
"Our strategy is connected to the market opportunities and our strategy is working," he says. "But at this point in time .... There are multiple areas in the world, demand pools, which have dried up for a while.
"While the middle to long term is positive, the farmers will have to manage through these low prices and the only way to do that is manage your cost price.
"We will try to do get as much money from the market as possible, but cost price on farm is crucial. We have to turn the wheel, get value from the market. Our farmers are focusing on cost."
Farmers will hopefully have enough to keep going with the current forecast of $4.50/kgMS farmgate milk price, with the 50c support and 40-50c earnings per share, bringing the payout to a potential $5.60 including the loan.
"I really do believe in the second half of this year we could see a completely different scene with a significant weather event."
An independent report, prepared for Alliance farmer shareholders is backing the proposed $250 million joint venture investment by Irish company Dawn Meats Group.
Whangarei field service technician, Bryce Dickson has cemented his place in John Deere’s history, becoming the first ever person to win an award for the third time at the annual Australian and New Zealand Technician of the Year Awards, announced at a gala dinner in Brisbane last night.
NZPork has appointed Auckland-based Paul Bucknell as its new chair.
The Government claims to have delivered on its election promise to protect productive farmland from emissions trading scheme (ETS) but red meat farmers aren’t happy.
Foot and Mouth Disease outbreaks could have a detrimental impact on any country's rural sector, as seen in the United Kingdom's 2000 outbreak that saw the compulsory slaughter of over six million animals.
The Ministry for the Environment is joining as a national award sponsor in the Ballance Farm Environment Awards (BFEA from next year).
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