Fonterra rules out incentive to help farmers lower emissions
Fonterra chair Peter McBride says the co-operative isn't thinking about offering farmers any financial incentives for lowering their on-farm emissions profile.
Fonterra farmers acknowledge that the forecast 2023-24 farmgate milk price range of $6 - $7.50/kgMS is well below break-even point for many of them.
Fonterra Co-operative Council chair John Stevenson says of key interest to the council and to Fonterra farmers is to what extent the strong earnings and return on capital for FY23 can be sustained in FY24 and beyond.
The council notes that the top end of the FY24 forecast earnings range of 45-60 cents per share is above the FY24 target of 45-55 cents per share announced in September 2021, but well below FY23's normalised 80 cents per share.
"Management has reported that the favourable price relativities we've experenced across FY23 have reduced from their peaks," says Stevenson.
He says farmers haev reported to them that they are encouraged to see that the business is trying to improve underlying performance outside of stream returns through its focus on reducing costs across the co-op and the two new efficiency metrics that have been announced.
Council will take a keen interest in monitoring progress against these metrics when the FY24 interim results are announced, noting the FY23 figures of $1.39 cash cash operating expenses per kgMS and $9.21 gross profit from core operations per kgMS that were reported.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
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