Pipeline of rural governors critical
The future of Fonterra is assured, so long as farmer owners stay engaged in the governance of the industry and the business they collectively own.
Embattled milk processor Synlait is the latest to increase its forecast base milk price for the 2024/25 season.
In an announcement to the NZX this morning, Synlait said it would lift its forecast to $8.60/kgMS, up from $8/kgMS.
Despite this increase, the milk processor says it will continue to take a ‘conservative’ approach to its 2024/25 forecast due to exposure to what it describes as volatile future dairy commodity prices earlier in the season.
“Retention of Synlait’s milk supply remains a critical priority for the company,” the statement says. “Synlait is committed to delivering a competitive milk price and advanced rate profile, which has also been lifted for 2024/2025 to ensure the company’s on-farm offering remains attractive to farmer suppliers.”
Synlait says it will continue to monitor future forecast movements and its final milk price for the 2023/24 season will be confirmed when the company’s full-year results are revealed at the end of this month.
The announcement comes just two weeks after Fonterra announced its new forecast range of $7.75 - $9.25/kgMS, meaning a midpoint of $8.50/kgMS.
It also comes as Synlait attempts to pass a recapitalisation plan which would see $218 million in shares offered to its two largest shareholders, Bright Dairy of China and the a2 Milk Company (a2MC).
Currently, Bright Dairy owns 39% of Synlait but under the deal that would increase to approximately two thirds of the listed company. Meanwhile, a2MC would retain its 19.83% stake.
A special shareholder meeting has been scheduled for September 18 to confirm the recapitalisation.
A hundred primary schools across New Zealand are now better resourced to teach their students about food and farming after winning ‘George the Farmer’ book sets in a recent competition run by rural lender, Rabobank.
Kiwifruit growers are celebrating a trifecta of industry milestones next month.
TB differential slaughter levy rates are changing with dairy animals paying $12.25/head, an increase of 75c from next month.
Taranaki's Zero Possum project has entered a new phase, featuring a high-tech farmland barrier and a few squirts of mayo.
The recent Tractor and Machinery Association (TAMA) conference in Wellington was signalling cautious optimism on the back of rising milk and store cattle prices and drops in interest rates.
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