Tuesday, 23 November 2021 08:55

Doing nothing not an option

Written by  Sudesh Kissun
Fonterra chairman Peter McBride. Fonterra chairman Peter McBride.

Doing nothing to arrest the slide in milk supply is not an option, says Fonterra chairman Peter McBride.

He told farmer shareholders that the total New Zealand milk supply is likely to decline or be flat at best.

McBride says Fonterra's supply depends on the actions it takes with the capital structure, performance, productivity and sustainability.

"If we do nothing, we are likely to see around a 12-20% decline by 2030 based on the milk supply scenarios we have modelled.

"Protecting a strong New Zealand farmer-owned co-operative of scale is in all our interests."

He notes that being a strong co-op ensures it pays the highest sustainable milk price. Fonterra's milk price sets the benchmark for prices Kiwi dairy farmers are paid for their milk.

"Based on our current operations, our farmgate milk price could be 6-13 cents lower by 2030 if we make no changes to our capital structure."

More like this

Why Fonterra needs to change

OPINION: Making a change to any businesses is difficult. Augmenting a capital structure with the diversity of stakeholders and complexity as at Fonterra is a significant challenge.

Anti co-operative?

OPINION: Agriculture Minister Damien O’Connor has thrown a spanner in the works as far as Fonterra’s proposed capital structure is concerned.

Tributes to a dairy champion

Fonterra chairman Peter McBride has paid tribute to dairy industry leader John Luxton, who passed away earlier this month.


Dairy tops organic exports

Dairy has been named as New Zealand’s largest organic sector with exports of $153.8 million, up 55% from 2017.

Machinery & Products

Gongs for John Deere

The tractor of the Year 2022 Awards, held at the recent EIMA show in Bologna, handed out a brace of…

Digital pre-start safety checks

According to numbers published by ACC, more than 60 farm-related injuries are reported every day, leaving much room for improvement.

JV for Bucket Test App

Irrigation NZ and global farm management company CropX have established a joint venture agreement for the Bucket Test app.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Poo-powered BMW

OPINION: Car maker BMW is partnering with a California dairy farm to turn effluent into clean energy to power its…

Not bad

OPINION: New Zealand may be a minnow on the global stage but here’s another example how our ag sector punches…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter