Fonterra appoints new CFO
Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.
Fonterra is suspending for six months the five cents differential between its share-backed and non-share backed Farmgate Milk Price.
The decision means that farmers will not be required to immediately share up to cover increased milk production at the end of this season.
Instead, they will share up based on the new rolling three season average Share Standard which comes into effect from June 1, 2013.
Fonterra chairman Henry van der Heyden says: "For most farmers, the new Share Standard should result in a lower required minimum shareholding from that time.
"This is a commonsense solution that will simplify farmers' business decisions between now and June 2013. It will ease the transition into the introduction of the three season rolling average from that time."
Earlier in the year, the board decided on a five cent difference in the Farmgate Milk Price for share-backed and non share-backed production.
"We have since seen higher levels of milk production this season than originally forecast – and some of our farmer shareholders were considering adding to their shareholding now to gain the benefit of the full milk price," van der Heyden says.
"The board's made a practical decision to suspend the five cent milk price differential for the next six months, because it made no sense to encourage farmers to acquire additional shares in this period.
"Instead, this decision sends a strong signal to our farmer shareholders that they should not feel any pressure to purchase shares to back all their production this season.
"It means farmers can focus on other priorities, while also getting used to managing their shareholding through the Fonterra Shareholders' Market and Fund," says van der Heyden.
The decision does not apply to the contract milk price (for milk supplied by farmers who are not Fonterra shareholders), or former NZDL suppliers.
OPINION: The recent Federated Farmers / Rabobank 2024 Farming Salaries Report revealed strong growth in farm salaries over the past two years.
The low unemployment environment is one of the key factors driving on-farm salaries higher over the past 24 months, says Rabobank general manager for country banking Bruce Weir.
Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.
A seminar on rural dispute resolution has been organised at Lincoln University, Christchurch this month.
The legacy of Dr Peter Snow continues to inspire as the recipients of the 2023 and 2024 Peter Snow Memorial Awards were announced at the recent National Rural Health Conference.
One of Fonterra’s global customers, Mars is launching an ambitious sustainable dairy plan to work with dairy farmers and cut emissions by 50%.
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
OPINION: It seems every bugger in this country can get an award these days.