increase font size
James Barron
Fonterra's full-year results and strategy refresh has been well received by shareholders says Fonterra Co-operative Council chair James Barron.
He says farmers are now seeing "a much nimbler business".
"Management was able to fully utilise our co-op's scale and diversification by shifting milk into the markets, categories and product lines that were the most profitable in the Covid-19 environment."
Fonterra last month announced a net profit of $599 million and a long-term growth plan that includes pulling out of global milk pools and working on adding value to New Zealand milk.
Barron noted that the results are largely in line with the three-year targets announced in 2019, and show the co-op can deliver healthy earnings and a strong milk price.
He says that the dividend payment of 20c/share is evidence of the improved business performance and notes that debt has significantly reduced and is now at a comfortable level.
Barron acknowledged the hard work that Fonterra chief executive Miles Hurrell and his team had put in to achieve the results, but noted that there was still more work to do around return on capital.
He also welcomed longer-term performance targets included in the long-term strategy update.
"Council has been hearing members asking for this forward outlook, and we commend the board and management for responding with it," Barron says.
"We understand from our independent analyst Northington Partners that the level of transparency provided is high and relatively rare in the New Zealand context."
The council's annual report, out later this month, will contain more detailed analysis and commentary on the co-op's performance and projections.
In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.
A four year trial has reaffirmed that mixing plantain into dairy pastures can help reduce nitrogen losses to freshwater while maintaining milk production and profitability, say researchers.
Fonterra has opened its upgraded Chengdu Application Centre, bringing New Zealand dairy expertise closer to customers in one of China's fastest-growing regions.
Tatua chair Stephen Allen says he leaves the co-op with a deep sense of gratitude for the people who have contributed to its success.
Federated Farmers president Colin Hurst and his family raised a glass of milk last week to toast the start of a new addition to their farming operation at Makihihi, south of Timaru.
Celebrating 50 years in the rural landscape of Central Canterbury and beyond, Ashburton-based Carrfields, has been the exemplar for all aspects of modern agriculture via its extensive range of services including supply, growing, agronomic advice and marketing.
For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.
West Otago dairy farmer Luke Kane has been awarded the 2026 Rabobank Dr John Morris Business Development Prize.
OPINION: As the general election approaches, political parties are churning out policies in the hope of attracting more votes.
An LIC bull, Tronnoco AR Sadio-ET S3F, bred by Tony and Keri O'Connor of Tronnoco Farming Co Ltd near Timaru, has won the 2026 Mahoe Trophy.
With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.
OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided…
OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.
