Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Fonterra has been notified that rating agency Standard and Poor's has downgraded the co-op's credit rating from A to A-.
Chief financial officer Lukas Paravicini says "Our underlying financial strength and credit quality remain strong. This is recognised by Standard and Poor's maintaining our rating in the 'A' category and reflects our fundamental strength and financial discipline.
"It is important to note that the revised rating will not have any impact on Fonterra's strategy or on farmer shareholder payout."
Paravicini says the co-op's current debt is at expected levels for this stage of the investment cycle.
"We carefully planned our investment strategy by first reducing our gearing over a number of years to enable us to make higher levels of investment in key strategic opportunities.
"These investments are making the co-operative stronger and positioning us well for the future. We have built additional manufacturing capacity in our home base of New Zealand which is improving returns by giving more product options during the peak production period and our planned investments in China are building our presence in our number one strategic market."
Paravicini says Fonterra is continuing its strong financial discipline, including capital investment management, setting a prudent advance rate payment to farmers for the current season, and applying its dividend policy to ensure an ongoing retention of a portion of earnings.
He says Fonterra are progressing well with their business transformation and this will further strengthen their financial position. "Global dairy prices are also recovering which is a positive development, particularly for our farmer shareholders."
Standard and Poor's noted that its new methodology for agricultural co-operatives introduced in March does not always adequately capture the significant financial flexibility, and hence strength, of the co-op.
"Given this, we are disappointed that Standard and Poor's has not reconfirmed its rating from April, especially when global dairy prices have significantly improved and we have continued our strong financial discipline."
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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.