Wednesday, 04 May 2016 08:55

Fonterra’s performance under blowtorch

Written by 
Deputy Prime Minister Bill English. Deputy Prime Minister Bill English.

Deputy Prime Minister Bill English says farmers should not put the blame on Fonterra.

On the co-ops performance, English says during a downturn there is always a temptation to blame; however that's a product of world supply.

"You can't expect Fonterra to be setting the world price."

He is confident that whatever Fonterra is discussing with its shareholders it is helping farmers maintain a cohesive and confident view of the future.

Fonterra is expecting milk production to be lower by 4% this season. English says this allows the co-op to focus on its volume-to-value strategy. More milk is going into higher value products.

Shareholders and the Government would like to think more could have happened sooner, English says.

"But Fonterra has had to deal with this big surge in production over recent years so they are now well geared up with the right attitude to push more volume into high value added products.

"In five years that's how farmers will judge them: on how the co-op has succeeded in turning more milk into high value products."

However, English notes that higher value added products would always be risky investments; Fonterra's product range will always be underpinned by a base load of competitive production of milk powder commodity type products.

More like this

Featured

Farmers urged not to be complacent about TB

New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.

Editorial: Making wool great again

OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.

National

Lame stories from a country vet

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s…

Machinery & Products

Amazone extends hoe range

With many European manufacturers releasing mechanical weeding systems to counter the backlash around the use and possible banning of agrochemicals,…

Gong for NH dealers

New Holland dealers from around Australia and New Zealand came together last month for the Dealer of the Year Awards,…

A true Kiwi ingenuity

The King Cobra raingun continues to have a huge following in the New Zealand market and is also exported to…

» Latest Print Issues Online

Milking It

Greenpeace a charity?

OPINION: Should Greenpeace be stripped of their charitable status? Farmers say yes.

Synlait's back

OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter