Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Fonterra farmers are in line to be paid a milk price over $9/kgMS for the first time ever.
The co-operative today lifted its 2021-22 forecast farmgate milk price range to $8.90 - $9.50/kgMS, up from $8.40 - $9.00 per kgMS.
This increases the midpoint of the range, which farmers are paid off, by 50 cents to $9.20/kgMS.
The previous record milk price of $8.40/kgMS was set in 2013-14 season.
Fonterra chief executive Miles Hurrell says the price lift is good news for both farmers and New Zealand communities.
The new midpoint of $9.20/kgMS would contribute $13.8 billion to the New Zealand economy this season.
Hurrell says the increase is the result of consistent demand for dairy at a time of constrained global milk supply.
“In general, demand globally remains strong – although, we are seeing this vary across our geographic spread. Overall, global milk supply growth is forecast to track below average levels, with European milk production growth down on last year and US milk growth slowing due to high feed costs.
“It’s a similar supply picture in New Zealand. Earlier this month we reduced our forecast milk collections for 2021/22 from 1,525 million kgMS to 1,500 million kgMS due to varied weather and challenging growing conditions.”
While the higher forecast Farmgate Milk Price does put pressure on margins in Fonterra’s consumer and foodservice businesses, prices in the ingredients business are favourable for milk price and earnings at this stage, notes Hurrell.
“As a result, we remain comfortable with our current 2021/22 earnings guidance of 25-35 cents per share.”
Hurrell says there are a number of factors the co-op is keeping a close eye on, including growing inflationary pressures impacting on operational costs, the increased potential for volatility as a result of high dairy prices and economic disruptions from COVID-19, particularly as governments respond to the rapid spread of the Omicron variant.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
Horticulture NZ chief executive Nadine Tunley will step down in August.