Fonterra Whareroa sets cheese record, wins top award
Fonterra Whareroa wrapped up a successful season with a record-breaking cheese production volume and several gongs at the co-op's annual Best Site Cup awards.
Fonterra last week lifted its earning guidance for this season but narrowed its forecast farmgate milk price due to softening whole milk powder prices.
The co-op's new earnings guidance is 50-70c/share, up from 45-60c. However, its forecast farmgate milk price range drops from $8.50-$10/kgMS to $8.50-$9.50/kgMS.
The new midpoint for the forecast milk price is $9/kgMS, a drop of 25c, but the co-op is holding its advance rate paid to farmers monthly for milk.
Fonterra chief executive Miles Hurell says it was a positive start to the year given the current global operating environment.
"We continue to feel the impact of geopolitical and macroeconomic events, with higher costs at every point in our supply chain.
"It's a similar story behind the farm gate with our farmer shareholders managing significantly higher input costs."
The co-op reports that globally, milk supply from key exporting regions is down over the last 12 months.
Production in Europe and Australia continues to be down, with US milk supply showing a slight improvement in recent months. In New Zealand, Fonterra's milk production is down 2.9% on the same point last season.
"Global market volatility has prompted some softening of demand for whole milk powder, particularly in Greater China, and this is reflected in our forecast farmgate milk price range," says Hurrell.
"We've seen increased participation from other regions, which has offset in part the drop in demand from Greater China. While it's still early in the financial year, we are happy with our sales contract rate."
Hurrell says the long-term outlook for dairy remains strong.
"There's no doubt that we're in a period of increased global uncertainty.
"Inflationary pressures are bing felt both on farm and across our business but looking further out, the fundamentals for dairy remain positive."
New Zealand must continue to educate Chinese consumers about the unique qualities of its red meat products and how they differ from competitors, says Silver Fern Farms chief executive Dan Boulton.
There are opportunities outside the farmgate for young farmers to further develop their skills, says 2025 Primary Industries Emerging Leader Award winner Bridie Virbickas.
A brilliant result and great news for growers and regional economies. That's how horticulture sector leaders are describing the news that sector exports for the year ended June 30 will reach $8.4 billion - an increase of 19% on last year and is forecast to hit close to $10 billion in 2029.
Funding is proving crucial for predator control despite a broken model reliant on the goodwill of volunteers.
A major milestone on New Zealand's unique journey to eradicate Mycoplasma bovis could come before the end of this year.
We're working through it, and we'll get to it.
OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.
OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.