Winston Peters calls Fonterra vote result 'utter madness'
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
Fonterra has announced a forecast earnings per share range for the 2017 financial year of 50 to 60 cents.
The forecast farmgate milk price has been maintained at $4.25/kgMS, making the total payout available to farmers in the 2016/17 season $4.75 to $4.85.
Chairman John Wilson says the solid forecast earnings per share range reflects performance improvements across the business and would be welcomed by farmers. However, with the farmgate milk price forecast remaining at $4.25/kgMS, it is another financially challenging season for farmers.
"The cooperative is aware of how tough the situation on farm remains," Wilsons says.
"We are focused on delivering as much cash as possible to our farmers by bringing payments forward while maintaining a strong balance sheet. This forecast is our best estimate at this early stage of the season. We will continue to update our farmers as we move through the season."
Wilson says the $4.25 farmgate milk price reflects the continuing global uncertainty and the high NZD/USD exchange rate which continues to impact the competiveness of New Zealand dairy exports.
"The recent weakening of the Euro, combined with the continued strength of the New Zealand dollar, has meant a price advantage for European export dairy products," he says.
"We expect global milk supply and demand to come into balance over the course of this season. Farmers globally are producing less milk in response to lower prices and we are forecasting a 3% reduction in our New Zealand milk collection for this season."
Chief executive Theo Spierings says the returns from the ingredients, consumer and foodservice businesses continue to grow in-line with Fonterra's business strategy to convert more milk into higher returning products.
"We are seeing the benefits of our investments in manufacturing over recent years," Spirings says. "We now have more flexibility to make the right products at the least cost, delivering better returns for our farmers' milk.
"Our good progress in continuing to increase value through our consumer and foodservice businesses, particularly in important markets such as China, Malaysia, Indonesia, Sri Lanka, Oceania and Latin America, is reflected in the lift in the earnings per share forecast.
"Constantly improving the performance of our business is an absolute priority and puts us in a strong position to create more value for our farmers. We are generating significant improvements and cash benefits through our ongoing business transformation that contribute to both our farmgate milk price and our earnings."
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.
Rural retailer Farmlands has reported a return to profitability, something the co-operative says shows clear progress in the second year of its five-year strategy.
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