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.
Fonterra is renewing contracts for some of its organic dairy farmers in the middle and lower North Island, following a turnaround in its niche organics business.
Managing director fonterra nutrition, Sarah Kennedy, said the cooperative has worked hard over the past 18 months to return its organics business to profitability.
"Eighteen months ago we were losing money so we restructured the business to focus on markets in Asia, while also reducing our costs to ensure on-going profitability," Kennedy says. "We reduced transport costs by concentrating organic milk supply in the central and lower North Island.
"Our focus on Asia has also paid off with higher premiums for organic ingredients and increasing demand, mostly out of China.
"Based on this turnaround, we are now able to renew contracts for farmers in the middle and lower North Island who have contracts expiring this year. The remainder of our organic suppliers in these regions have between 1-2 years left in their existing contracts with us.
"We want to ensure we build a business that is sustainable. With that in mind, we are conducting a thorough review to ensure we have the right business model to cope with volatile markets and will come back to our farmers early next year.
"We know our farmers are looking for certainty but it's critical we get this right for the long-term benefit of the whole cooperative."
The organics plans outlined to farmers today mean:
• Farmers currently supplying organic milk in Manawatu, Taranaki and Wairarapa, who have contracts expiring in FY13, will have them renewed for a further two year term.
• Farmers currently supplying organic milk in the Waikato and Bay of Plenty, who have contracts expiring in FY13, will have them renewed for a further three year term.
• Fonterra will continue to concentrate organic milk supply in the middle and lower North Island, meaning Northland suppliers will not have their contracts renewed.
• Fonterra will update farmers who have contracts expiring in FY14 and FY15 by early next year.
Fonterra is meeting with farmers in Northland, Waikato, Manawatu and Taranaki over the next two days to provide a full update on its organics operations.
Acclaimed fruit grower Dean Astill never imagined he would have achieved so much in the years since being named the first Young Horticulturist of the Year, 20 years ago.
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.
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