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.
While Fonterra’s first quarter revenue is up 4% on the same period last year, sales volumes are down 20% to 3.9 billion liquid milk equivalent (LME).
Gross margin of 16.7% is also down on last year, says chief executive Theo Spierings.
He says the first quarter financial results were generally as expected as the co-op started the year with record low inventory followed by the second year of low spring milk collections from NZ due to wet weather.
“This has challenged our ingredients business where we had lower volumes to sell. As a result, sales were down 19% to 3.6b LMEs compared to the same time last year.
“The gross margin in ingredients was in line with the second half of last year. However, when we compare it to the same period last year it was down from 12.1% to 8.1%, mainly due to the rise in commodity prices,” says Spierings.
“Our consumer and foodservice business continued with strong sales volumes in our key markets across Greater China and Asia with overall just a 3% decline to 1.3b LMEs in total volume compared to the record levels at the same time last year.
“Gross margin in consumer and foodservice was 24%. While this is down on the 31% in the first quarter of 2017 when input costs were lower, it is up on the gross margin percentage in the last quarter of 2017. This positive trend shows we can create more value in our consumer and foodservice business despite higher input costs and it reflects the strength of our strategy of moving more volume into higher value.”
Spierings says the co-op expected performance to be weighted to the second half of the year and remains confident in its full year forecasts following revisions after the recent Danone news.
“We are focused on continued tight operational and financial discipline and a keen eye on our customers’ needs to maximise sales opportunities.”
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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