Friday, 12 April 2019 11:37

Restraints on Fonterra's growth

Written by  Pam Tipa
Fonterra director Brent Goldsack. Fonterra director Brent Goldsack.

Growth has been debated at the Fonterra board table and the directors’ view now is that the co-op will not see the huge growth of the past, says director Brent Goldsack.

Environmental constraints could be the limiting factor.

“Things around water and nutrients: we will get a very good handle on that,” he told the Northland Dairy Development Trust’s annual meeting in Whangarei last week. 

“But as we look at gases – whether methane or nitrous oxide -- that’s much harder.” 

Methane may be a little easier but generally it gets harder, Goldsack said.

Over 35 years production has increased threefold but the co-op won’t be getting that growth in the future, he says. With genetics and science he is confident farming will consistently improve. 

“As a board I think we are saying [growth] is probably going to be relatively flat — certainly for the foreseeable future.”

Goldsack says he is worried at the prospect of a payout of $7/kgMS or better next year because at that price people start getting ahead of themselves and do things they later regret.

“The Europeans, the Americans… they would much rather be where we are today and this is our third year in the mid $6/kgMS. It’s been a nice spot for the co-op over the last three years.”

More like this

"Our" business?

OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it both ways when it comes to the success of NZ's dairy industry.

Farmers' call

OPINION: Fonterra's $4.22 billion consumer business sale to Lactalis is ruffling a few feathers outside the dairy industry.

Wasted energy

OPINION: Finance Minister Nicola Willis could have saved her staff and MBIE time and effort over ‘buttergate’ recently by not playing politics with butter prices in the first place.

Featured

Fencing excellence celebrated

The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.

National

Machinery & Products

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.

» Latest Print Issues Online

Milking It

Buttery prize

OPINION: Westland Milk may have won the contract to supply butter to Costco NZ but Open Country Dairy is having…

Gene Bill rumours

OPINION: The Gene Technology Bill has divided the farming community with strong arguments on both the pros and cons of…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter