Editorial: Agri's mojo is back
OPINION: Good times are coming back for the primary industries. From sentiment expressed at Fieldays to the latest rural confidence survey results, all indicate farmer confidence at a near-record high.
OPINION: What a difference a year can make.
Twelve months ago, Fonterra shares plummeted to $2 on the New Zealand Stock Exchange.
Compare that to seven years ago, when it was hovering around $6.50. Last week, shares were trading around $4.50. In the last financial year, Fonterra’s market capitalisation is up $4.3 billion to $7.7 billion.
The shift in share price reflects performance, and the returning confidence farmers have in Fonterra. And credit for this must go to Fonterra’s management team and staff.
It’s been a tough few years for the co-op’s farmer shareholders. Rising costs, interest rates and below par milk price have been taken a toll on dairy farming.
Thankfully, on-farm costs are easing and a potential $10 milk price on the cards this season means many farmers will be either breaking even or making a profit after a tough period. For these farmers, a rejuvenated co-op with a healthy share price puts the icing on the cake.
At Fonterra’s annual general meeting this month, the board and management expressed confidence in its revised strategy and the potential to create further value for shareholders.
The co-op has lifted its target average return on capital to 10-12%, up from 9-10%. There’s also a commitment to return more of the co-op’s earnings to shareholders, with an enhanced dividend policy of 60-80% of earnings, up from 40-60%. And the co-op is committed to maintaining the highest sustainable farmgate milk price.
With the co-op in a healthy state and the farmgate milk price heading towards $10, there’s renewed confidence among farmer shareholders. They can say Fonterra is in a strong position today and has a strong future.
Commercial fruit and vegetable growers are being encouraged to cast their votes in the Horticulture New Zealand (HortNZ) board directors' election.
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A New Zealand company is redefining the global collagen game by turning New Zealand sheepskin into a world-class health product.
With further extreme weather on the way, ANZ Bank is encouraging farmers and business owners impacted by the recent extreme weather and flooding to seek support if they need it.
New Zealand must continue to educate Chinese consumers about the unique qualities of its red meat products and how they differ from competitors, says Silver Fern Farms chief executive Dan Boulton.
There are opportunities outside the farmgate for young farmers to further develop their skills, says 2025 Primary Industries Emerging Leader Award winner Bridie Virbickas.
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OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.