increase font size
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.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
Farmers supplying milk to Taupo-based processor Miraka are getting a 2024-25 season base milk price of $10.16/kgMS.
OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
