increase font size
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.”
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
One of New Zealand’s largest fertiliser plants could be forced to shut down for four months as uncertainty looms over gas supply.
Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.
The Environmental Protection Authority (EPA) is consulting on a proposal to ban weedkillers containing chlorthal-dimethyl (DCPA).
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.
A Taupo company says it's the first to bring CO₂-powered water heating technology to New Zealand dairy sheds, helping farmers cut energy costs by up to 85%.
OPINION: Sydney has a $12 million milk disposal problem.
OPINION: Canterbury milk processor Synlait's recovery seems to have hit another snag.
