Divestment means Fonterra can focus on its strengths
OPINION: Fonterra's board has certainly presented us, as shareholders, with a major issue to consider.
Fonterra says securing capital for future growth will depend on how its farmers manage emissions on-farm.
The co-operative plans to start discussions with farmer shareholders "about what a target will look like and how we'll get there".
Chief executive Miles Hurrell says having a target will help secure high value customers, enable the co-op and farmer owners to meet ongoing regulations as well as secure future finance.
Hurrell says there is "a strong pull" coming from customers, consumers and the capital market.
"Our access to the capital will be linked to how we are dealing with emissions on farm," he says.
Fonterra acknowledges making change on-farm is not easy.
Hurrell points out that the co-op currently has 18 methane-reduction projects underway and 30 active trials of potential solutions.
"These activities support us in building a stronger co-op for the future, and we'll be out talking about these topics over the coming months.
"As we've said earlier, we're well positioned to navigate the challenges we're currently seeing, while also looking out to the needs of our customers and consumers in the years ahead.
"This long-term view determines the steps we need to take today to ensure we continue to be a dairy provider of choice and strong co-op for generations to come."
The co-op is also investing in R&D and new technologies to help reduce emissions on-farm.
Projects underway include a new private-public partnership joint venture announced in November, through which Government and partners from across the food and fibre sectors will work together to reduce methane emissions.
Hurrell says the co-op is also making progress in work to transition its manufacturing sites out of coal by 2037.
"At our Waitoa site we're converting one of our boilers to wood biomass.
"Scheduled to be operating later this year, the new boiler will reduce the site's annual emissions by 48,000 tonnes of CO2e, the equivalent of taking 20,000 cars off New Zealand's roads."
Meat co-operative, Alliance has met with a group of farmer shareholders, who oppose the sale of a controlling stake in the co-op to Irish company Dawn Meats.
Rollovers of quad bikes or ATVs towing calf milk trailers have typically prompted a Safety Alert from Safer Farms, the industry-led organisation dedicated to fostering a safer farming culture across New Zealand.
The Government has announced it has invested $8 million in lower methane dairy genetics research.
A group of Kiwi farmers are urging Alliance farmer-shareholders to vote against a deal that would see the red meat co-operative sell approximately $270 million in shares to Ireland's Dawn Meats.
In a few hundred words it's impossible to adequately describe the outstanding contribution that James Brendan Bolger made to New Zealand since he first entered politics in 1972.
Dawn Meats is set to increase its proposed investment in Alliance Group by up to $25 million following stronger than forecast year-end results by Alliance.
OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.
OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.