Coutts appointed chair-elect of Mainland Group
Fonterra has named Elizabeth (Liz) Coutts the chair of Mainland Group, the proposed divestment entity of the co-operative’s consumer business.
Canterbury milk processor Synlait is confident of retaining its farmer supplier base following a turnaround in its financial performance.
Acting chief executive Tim Carter told Dairy News that last week’s announcement of new milk premiums for its South Island farmer suppliers “is a tangible way to show them that we are back on track”.
Carter says the response from farmers has been “very positive”.
The listed company has signalled that it expects half-year earnings before interest, taxes, depreciation, and amortization (EBITDA) to January 31 to be in the range of $58 million to $63 million. Last year the company reported a bottom- line loss of $70m.
To keep its South Island supplier base, many of whom had issued notice of cessation of supply to the company, Synlait has announced new premiums.
Carter says that while “the job is not yet done”, the company has made a good start to recover.
He admits that farmer suppliers want surety that Synlait is here for the long term.
“Since 2000s, we have delivered consistent performance except for last few years.
“Our farmers are rightly asking for surety that we are here for the long term.”
Carter says the positive financial forecast and the new milk premiums go hand-in-hand.
“Without our farmers and their milk, we have no business.”
Synlait says it will pay 10c/kgMS premium to South Island farmers committed to a future with Synlait without a cease notice in place. The premium will be in place for the next three seasons, and paid on top of Synlait’s base milk price and in addition to the incentives for specialty milk and its Lead With Pride programme.
The company will also amend milk supply agreements to enhance cashflow security – guaranteeing, from the current season, an average Synlait milk price that matches the market base milk price, and from next season, to match the market advance rate.
Carter says the Synlait team has worked extremely hard to lift productivity and performance in the past six months.
“The announcement demonstrates the huge progress being made and, while we cannot take our foot off the pedal, we are pleased to announce we expect to return to profitability at our upcoming half year result,” he says.
“Farmers are an important backbone to our business. To further recognise that, we have increased our commitment to existing and new South Island suppliers with additional premiums in place for each of the following three seasons. We are confident this will secure our milk supply which is critical to our future.”
Federated Farmers supports a review of the current genetic technology legislation but insists that a farmer’s right to either choose or reject it must be protected.
New Zealand’s top business leaders are urging the US Administration to review “unjustified and discriminatory tariffs” imposed on Kiwi exporters.
New tariffs imposed by President Donald Trump signal an uncertain future, but New Zealand farmers know how to adapt to changing conditions, says Auriga Martin, chief executive of Farm Focus.
A global trade war beckons, which is bad news for a small open economy like New Zealand, warns Mark Smith ASB senior economist.
Carterton's Awakare Farm has long stood as a place where family, tradition and innovation intersect.
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
OPINION: Is it the beginning of the end for Greenpeace?
OPINION: The good times felt across the dairy sector weren't lost at last week's Beef + Lamb NZ annual meeting.