increase font size
Fonterra chief executive Theo Spierings says since the co-op's formation in 2001, the board and farmer shareholders had made the tough decisions required to position it for growth.
Establishing a Fair Value Share, achieving a transparent Milk Price, and introducing a dividend policy were the first three hurdles, he told Fonterra's annual meeting in Hamilton today.
"This year, TAF (trading among farmers) has delivered permanent share capital and a stable capital base," he says.
"Looking ahead, our business strategy is to grow volumes, grow value, generate more cash and improve our return on capital."
To deliver on this, Spiering's priorities are to:
• Shift more ingredients sales direct to customers and generate prices higher than Global Dairy Trade;
• Grow consumer and foodservice volumes;
• Align costs and spending so the co-op has money to invest in areas that will generate growth; and
• Maintain a balance between environmental, economic and social sustainability.
•
"We have to start thinking differently about cost – and have already started doing this with our focus on reducing costs by $60 million this financial year."
Building a durable co-operative for the future meant Fonterra had to align spending, to make sure resources were directed to the right priorities, says Spierings.
Fonterra released its interim results last month, showing a continuation of the strong earnings performance delivered by the co-op through the 2023 financial year. Here’s what Fonterra chair Peter McBride and chief executive Miles Hurrell said about the results…
OPINION: Last week's revelation that data relating to New Zealand MPs was stolen amid Chinese state-sponsored cyber espionage targeting two arms of the country’s Parliament could test the long-standing trade relations between the two countries.
A 'proteinification' wave is sweeping through the US and Fonterra is cashing in with New Zealand made protein.
Fonterra cheeses are continuing their golden run at the annual New Zealand Cheese Awards.
Fonterra is talking up the strength of its Australian business despite a 70% drop in half-year profit after tax.
State farmer Pamu has appointed Ash-Leigh Campbell as an associate director and observer on its board.
A near miss experienced by a North Island farmer worker when their tractor ‘park’ gear failed, has been shared as the latest Safety Alert from Safer Farms.
The dairy industry has lost its mojo in the last six or seven years, according to a leading dairy farmer, Trevor Hamilton.
Biosecurity Minister Andrew Hoggard has reiterated that 'frontline' biosecurity services within Ministry for Primary Industries (MPI) will not be cut under the Government's plan to reduce the public service.
Could smaller foodservice operators take advantage of the benefits of artificial intelligence (AI)?
An appalling case of migrant worker exploitation on a Southland farm isn't acceptable, says Federated Farmers dairy chair Richard McIntyre.
