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Fonterra chief executive Theo Spierings.
Fonterra is fast tracking $100 million worth of milk plant upgrades in Australia.
The co-op says extra capacity resulting from the upgrade will allow it to process an extra 500 million litres of Australian milk.
Fonterra chief executive Theo Spierings says its Australian business has been transformed – from a return of -8% return on capital a few years ago to 15% ROC.
“Our Australian business is now processing 2 billion litres of milk with a ROC of 11 to 12%,” he told the co-op’s annual meeting in Hawera today.
Fonterra’s Australian plants are running at full capacity, with a waiting list of suppliers.
“We are the largest milk processor in Australia right now,” says Spierings.
He says there have been developments in the Australian dairy industry; Murray Goulburn has been sold to Saputo and the deal needs shareholder approval and regulatory clearances.
Spierings says while other players will be seeking regulatory cleareances, Fonterra will not rest on its laurels.
“I have approved the $100m upgrade to be fast-tracked; $100m allowing us to process another 500m L of milk is a no brainer,” he says.
“We will drive the Australian business as hard as we can,” he says.
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
DairyNZ chair Tracy Brown has waded into the debate around soaring butter prices, pointing out that the demand for dairy overseas dictates the price to farmers and at the supermarket.
Farmers are welcoming new Government proposals to make farm health and safety rules more practical and grounded in real-world farming.
Missing fresh mozzarella cheese made at home in Bari, southern Italy, Massimo Lubisco and his wife Marina decided to bring a taste of home to New Zealand.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
Irish meat processor Dawn Meats is set to acquire a 70% stake in Alliance Group, according to a report in The Irish Times.
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OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of…
