Wednesday, 25 November 2015 11:01

More capacity worth the cost - Wilson

Written by  Sudesh Kissun
Wilson says the increased capability will help maintain a good milk price for farmers. Wilson says the increased capability will help maintain a good milk price for farmers.

Fonterra chairman John Wilson says the co-op has invested $2.4 billion in additional capacity over the last three years.

While the investment has come at a cost to shareholders in terms of debt servicing, Wilson says it has provided the co-op flexibility.

Speaking at the co-op's annual meeting in Waitoa today, Wilson says the co-op's debt gearing ratio will come down to 40-45% before the end of the season.

He says the increased capability will help maintain a good milk price for farmers.

"We have added 8m litres more capacity in the last year," he says.

"It has eliminated losses at peak and offers us flexibility to grow returns from value added products."

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Featured

Flood-hit Tasman farms begin long recovery

People affected by the recent two severe flood events in the Tasman district are weary and exhausted trying to deal with the devastation on their farms and orchards, according to the head of the Rural Support Trust (RST) in the region.

Farmers urged to prepare as heavy rain looms

With adverse weather set to rain down on the Top of the South, the Bay of Plenty and parts of Northland, Agriculture Minister Todd McClay says farmers, foresters, and growers need to prepare for possible challenges.

National

Machinery & Products

Fliegl offers effluent solutions

Founded in Germany as recently as 1977, today, the Fliegl Group employs more than 1100 workers, offering an expansive range…

» Latest Print Issues Online

Milking It

It's all about economics

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter