increase font size
Chief executive Miles Hurrell says he's pleased by the result.
Fonterra is reporting a first quarter gross profit of $270 million, up $72m on the same period last year.
Chief executive Miles Hurrell says he is pleased with the progress the co-op has made in the first quarter- from August to October 2020. The co-op has continued to make progress on implementing its strategy.
“Despite ongoing market disruptions from COVID-19, we are continuing to build on the momentum achieved in the last financial year,” he says.
Sales volumes are in line with the same period last year, which was before the full impact of COVID-19.
“This reflects strong demand for dairy and careful management of our supply chain,’ says Hurrell.
“We’ve seen improvements right across our business, which has resulted in a 40% increase in our normalised earnings. There’s been a couple of exceptions to this – Europe, which has been impacted by higher costs, and Africa, which has been impacted by lower volumes as we have shifted product to meet strong demand across Asia.”
Fonterra’s Greater China Foodservice business has been the stand-out performer: demand for dairy in China continued to recover strongly from COVID-19.
The co-op expanded its foodservice business into another 13 cities in China, bringing the total number of cities it operates in to more than 360.
“And our teams are helping to drive demand by continuously releasing new innovative ways of using our products in local cuisine as they pursue the next big food trend in China,” says Hurrell.
Demand in the Southeast Asia (SEA) Consumer business has improved year-on-year, while the SEA Foodservice business has started to recover as COVID-19 restrictions eased in some markets.
In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.
A four year trial has reaffirmed that mixing plantain into dairy pastures can help reduce nitrogen losses to freshwater while maintaining milk production and profitability, say researchers.
Fonterra has opened its upgraded Chengdu Application Centre, bringing New Zealand dairy expertise closer to customers in one of China's fastest-growing regions.
Tatua chair Stephen Allen says he leaves the co-op with a deep sense of gratitude for the people who have contributed to its success.
Federated Farmers president Colin Hurst and his family raised a glass of milk last week to toast the start of a new addition to their farming operation at Makihihi, south of Timaru.
For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.
West Otago dairy farmer Luke Kane has been awarded the 2026 Rabobank Dr John Morris Business Development Prize.
OPINION: As the general election approaches, political parties are churning out policies in the hope of attracting more votes.
An LIC bull, Tronnoco AR Sadio-ET S3F, bred by Tony and Keri O'Connor of Tronnoco Farming Co Ltd near Timaru, has won the 2026 Mahoe Trophy.
With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.
A Palmerston North shearer has been sentenced to six months' community detention and 12 months' supervision after being found to have physically abused three lambs while shearing them.
OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided…
OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.
