Divestment means Fonterra can focus on its strengths
OPINION: Fonterra's board has certainly presented us, as shareholders, with a major issue to consider.
OPINION: There's growing confidence that dairy prices are firming up.
Last month, Fonterra lifted its forecast farmgate milk prcie mid-point to $8.50/kgMS and unveiled a new forecast range of $7.75 to $9.25/kgMS.
ANZ came out a few days later, raising its forecast milk price to $9/kgMS, which if achieved, will be the second-highest milk price on record.
The previous record was the 2021-22 season milk price of $9.30/kgMS.
The higher dairy prices can be attributed to factors such as little or no increase in milk production around the globe, including China, and firming demand. As usual, China remains the key.
Earlier this year, Chinese dairy purchases were at a 12-year low. There have been large increases in Chinese domestic dairy production, spurred on by the Chinese government. However, higher production costs and lower prices are slowing China's domestic milk production.
This has seen China come back to the Global Dairy Trade and buy a little bit more.
There's also talk that the Chinese government might encourage some dairy herd reduction to boost farm gate prices, which could lead to some additional imports.
For New Zealand farmers, things are looking up, however, higher interest rates remain a major challenge.
The average breakeven price assessed by DairyNZ for last season is $7.93/kgMS. The average breakeven price ofr the 2024-25 season is expected to creep back up to $8.07/kgMS with increased debt repayments and tax.
A $9 milk price will provide much-needed relief to farmers. For some it may prompt a little more spending on items such as repairs and maintenance, particulalrly work deferred due to low returns.
Still, the 2024-25 season has another nine months to run. Volatility will remain, but there is a good chance of prices firming.
Meat co-operative, Alliance has met with a group of farmer shareholders, who oppose the sale of a controlling stake in the co-op to Irish company Dawn Meats.
Rollovers of quad bikes or ATVs towing calf milk trailers have typically prompted a Safety Alert from Safer Farms, the industry-led organisation dedicated to fostering a safer farming culture across New Zealand.
The Government has announced it has invested $8 million in lower methane dairy genetics research.
A group of Kiwi farmers are urging Alliance farmer-shareholders to vote against a deal that would see the red meat co-operative sell approximately $270 million in shares to Ireland's Dawn Meats.
In a few hundred words it's impossible to adequately describe the outstanding contribution that James Brendan Bolger made to New Zealand since he first entered politics in 1972.
Dawn Meats is set to increase its proposed investment in Alliance Group by up to $25 million following stronger than forecast year-end results by Alliance.
OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.
OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.