Fonterra unveils healthy first quarter profit
Fonterra has unveiled a net profit of $263 million for the first quarter of its 2024-25 financial year.
That's the reaction from Mid-Canterbury farmer shareholder Jay Schmack after a recent visit to the co-op's Te Mātāpuna Innovation Lab in Singapore with her husband Wayne.
Fellow farmer shareholders Dave and Karen Ellis were also part of the visit, organised by Fonterra's Southern Central Canterbury regional manager Tom Munro.
"We got talking to Tom at a local event and mentioned that we had a day layover in Singapore on our way back from South Africa for the All Blacks' matches in September," says Jay.
"He suggested a visit to the innovation lab which sounded like an exciting opportunity."
The Innovation Lab, which opened in February, is one of several similar co-op facilities around the world, the others being in Melbourne, Amsterdam, Chicago and six in China. They act as an in-market extension of the Fonterra Research and Development Centre in Palmerston North and the teams work on a range of innovative applications using the co-op's NZMP ingredients, such as bakery products, beverages, dairy foods and snacks, to suit the local trends, tastes and cultures. The Singapore lab is focused on Fonterra's Southeast Asian markets and regularly hosts customers and suppliers to develop products tailored to that region.
Dave says the lab team was very welcoming and knowledgeable, able to give them a greater understanding of the opportunities that exist in Southeast Asia as well as the rationale behind the potential divestment of the co-op's Consumer business.
Read More
-
Sustainability dominates dairy summit
-
Co-op opens its doors to Wuhan
-
Fonterra boosts innovation spend in China's foodservice sector
"They gave us a great presentation on the different markets and applications and we were able to sample some products," says Dave.
"It was very interesting to see what they do there and learn more about the growing demand for New Zealand dairy and proteins across the region.
"We didn't know much about the scale of the market across Southeast Asia and other regions. When you look at the world markets compared to our small domestic market it puts into perspective the value that can be created by focusing more on the Foodservice and Ingredients area."
Jay says seeing the experts in action was a unique opportunity.
"We've done the Understanding Your Co-operative Programme at Fonterra's head office in Auckland and while that was informative, learning first-hand about the enormous amount of work that goes into creating value for shareholders is at another level," says Jay.
"The staff were really open about how they're working to expand the markets for our milk and create demand for high-value products and ingredients."
Tom Munro says he was pleased that the farmers got a lot out of the visit.
"It's great to be able to offer these unique experiences for our shareholders. We're always looking for ways that can help farmers build a deeper connection to the co-op," says Munro. "Jay, Wayne, Dave and Karen are really engaged so it was a pleasure to be able to give them this opportunity."
