increase font size
FONTERRA HAS told the primary production select committee it is 'broadly supportive' of the DIRA Bill and says it's pivotal to its future.
Heading Fonterra's team at the committee hearing, chairman Sir Henry van der Heyden noted that at a principle level the board thinks it's the right thing for New Zealand, the right thing for the co-op and the right thing for its farmers.
"We're actually quite excited it's finally coming into the back straight, especially around TAF which we think can deliver a hellava lot for New Zealand.
"There is a silent majority of farmers out there who email and phone me every day saying 'Let's get on with it; we've been waiting for this for a long time and we're excited."
Unsurprisingly, one of Fonterra's main points was on TAF, saying it will ensure Fonterra has the stable, permanent capital base it needs to protect itself from future shocks and to invest and grow.
Van der Heyden told the committee "TAF ensures permanent capital – a balance sheet that allows the board to execute strategy that will deliver value for all new Zealanders, the cooperative itself and farmer shareholders."
Most of the changes the co-op had put forward in TAF were of a "technical nature," van der Heyden said. But he noted concerns about "behavioural" provisions in section 109K which he claimed could "impede conduct that is part of operating a well functioning market."
He also voiced concerns about the milk oversight provisions in the bill. "Fonterra's position on the milk price oversight is that we don't think it's necessary, but we can live in that space. The Shareholders Council has a different view. From our perspective we've always had a transparent, robust process in setting the farmgate milk price so we don't see the need for oversight, but we can live with it."
Chief executive Theo Spierings told the committee Fonterra as a co-op was now at a crossroads in respect of where it was going.
Growth during the past ten years had been unprecedented and the organisation was well placed for the future. But nothing could be taken for granted, and the DIRA Bill is seen as a defining moment for Fonterra.
"We welcome the legislation as it enables us to go forward and deliver our strategy. I have viewed Fonterra for about 25 years from the other side of the world as a competitor and I've always regarded it as the envy of the world."
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
New Zealand avocado growers have received a major boost by securing a collective FernMark Licence for their exports.
Beef + Lamb NZ's countrywide director roadshow arrived in Feilding last week, bringing with it ongoing positivity in the sector, an overview of the work B+LNZ does on behalf of levypayers and a proposed change on how the levy would be collected in the future.
A stronger than expected outlook for dairy has prompted one bank to lift its 2025-26 season forecast milk price by 75c to $10.25/kgMS.
Chinese dairy giant Yili Group says its New Zealand operations are on track for strong revenue growth in 2025 after recording significant year-on-year growth for the first half of the year.
Trade Minister Todd McClay says the US tariff decision appears to be based on a calculation of trade deficits, with countries running a surplus with the US moved to the higher rate.
Alliance Group has announced plans to sell a 65% stake in the farmer-owned co-operative to Irish meat processor Dawn Meats Group for $250 million.
