Data sharing initiative wins national award for saving farmers time
The work Fonterra has done with Ballance Agri-Nutrients Ltd, LIC and Ravensdown to save farmers time through better data connections has been recognised with a national award.
Fonterra's profit announcement will be small consolation for dairy farmers facing an extended period of low milk returns.
So says Labour's Primary Industry spokesperson Damien O'Connor.
"The capital restructure of Fonterra which established Trading Among Farmers created an inevitable tension between the milk price and dividend payout," says O'Connor.
Outside investors have been demanding a better return on their unit investments, he says.
"While analysts and investors may praise the outcome, farmers are waking up to the long term consequences of the new structure in tight times.
"Most will still be entitled to the dividend stream from their co-operative shares but the pressure on many to sell the shares and keep their farm viable will lead to larger differentials over time in returns to suppliers of milk to Fonterra."
Increasing the value of the dividend is also unlikely to be of benefit to the nearly 4000 sharemilkers, who will also miss out on the payment, says O'Connor.
"Moving more product into value added income streams should be increasingly beneficial for the company but should not come at the expense of lower milk payments to supplying shareholders.
"Milk production for Fonterra was down 4% last year. There's concern that over time Fonterra will face a supply risk and struggle to fill the huge processing facilities it has built. If growth in milk production coincides with ongoing competitive foreign investment in farms and processing plants, the dairy industry will end up in an unprofitable meat industry conundrum."
O'Connor says the half year results may be hailed as a success by Fonterra but many dairy farmers will struggle to share the celebration.
Holstein Friesian excellence was front and centre at the 2025 Holstein Friesian NZ (HFNZ) Awards, held recently in Invercargill.
The work Fonterra has done with Ballance Agri-Nutrients Ltd, LIC and Ravensdown to save farmers time through better data connections has been recognised with a national award.
This past week has seen another round of negotiations between India and New Zealand to produce a free trade agreement (FTA) between the two countries.
Cautiously optimistic is how DairyNZ's regional manager for the lower North Island, Mark Laurence describes the mood of farmers in his patch.
The Infrastructure Commission has endorsed a plan by Chorus to expand fibre broadband to 95% of New Zealand much to the delight of rural women.
Questions are being raised about just how good the state of the dairy industry is - especially given that the average farmgate payout for the coming season is set to exceed $10/kgMS.
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