Hurrell Resignation: No Bonus or Golden Handshake for Fonterra CEO
Fonterra is rejecting New Zealand First's claim that outgoing chief executive Miles Hurrell is in line for a 'golden handshake'.
The co-op has narrowed the forecast farmgate milk price range from $9-$11/kgMS to $9/-$10/kgMS, with the midpoint changing from $10/kgMS to $9.50/kgMS.
Fonterra has also increased its forecast milk collections for the 2025/26 season from 1,525 million kgMS to 1,545 million kgMS.
Chief executive Miles Hurrell says they’ve seen strong milk flows this season, both here in New Zealand and other milk producing nations.
“This increase in milk supply has put downward pressure on global commodity prices, with seven consecutive price drops in recent Global Dairy Trade events. As a result, we have narrowed the forecast Farmgate Milk Price range for the season and adjusted our midpoint.
Fonterra started the season with a wide forecast range - of $8/kgMS-$11/kgMS.
Hurrel says the new midpoint of $9.50/is in the middle of this range and remains a strong forecast for the season.
Read More:
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- Global milk surplus drives dairy prices lower at latest GDT auction
“We continue to be focused on maximising returns for farmer shareholders through both the farmgate milk price and earnings. This includes through building strong relationships with customers who value our products, utilising price risk management tools, and optimising our product mix,” says Hurrell.
Last week's GDT auction recorded the seventh straight drop in the price index - the 3% drop, the second largest among the seven drops. Whole milk powder prices, primary determinant of Fonterra's farmgate milk price, has seen six consecutive drops. Six months ago, WMP price was around US$4374/MT; last week's overnight auction saw the WMP price drop to US$3452/MT.
