Forget about another share trading review
Former Fonterra director Nicola Shadbolt says the recent collapse of a few dairy cooperatives should be blamed on their strategy, not their co-op structure.
Australian dairy farmers have welcomed dairy co-op Murray Goulburn’s “honesty and transparency” in announcing its 2017-18 milk price.
The beleaguered milk processor says it will pay an opening milk price of A$4.70/kgMS, and it forecasts a full-year payment of A$5.20 - $5.40.
United Dairyfarmers of Victoria president Adam Jenkins says it recognises MG is in a challenging situation trying to navigate its way from the past into the future, but a A$4.70/kgMS opening price presents a serious challenge for dairy farmers still recovering from the events of last year.
“The importance now is for MG to deliver returns to farmers as soon as the returns are realised in the marketplace,” Jenkins says.
The UDV passed a motion at its annual conference in May to call on milk processors to release their opening prices by June 10 each year, ahead of the season.
Jenkins says the early release of an opening milk price showed Murray Goulburn had listened to the industry and the farming community.
MG chief executive officer Ari Mervis says that in setting the forecast the co-op had taken a “prudent view on key assumptions for commodity prices”.
“Although global commodity prices have shown some recovery since this time last year, whole milk powder and particularly skim milk powder prices remain under 10 year averages,” he said in a letter to suppliers.
“This has been somewhat offset by firmer butter and cheddar prices. We have also had regard to Global Dairy Trade auction results over the past two months and current futures pricing, both of which suggest some ongoing price volatility in global markets.”
Mervis says while the opening and forecast prices are an improvement on the current season, Murray Goulburn’s performance remains below his expectations.
He says the co-op has begun a comprehensive review of all aspects of MG’s strategy and corporate structure, including its profit sharing mechanism and capital structure.
“I see this review as a fundamental next step to strengthen MG for the future,” he told suppliers.
“While the previous decisions resulting from the manufacturing footprint review, including the announcement of three site closures, were necessary, I do not consider them alone to be sufficient to move the business forward.
“Given the timeframes associated with the site closures, the expected financial benefits are not expected to be fully realised by MG until FY19.
“A further update on the strategic review is expected to be provided at the time of MG’s full year results in August.”
Acclaimed fruit grower Dean Astill never imagined he would have achieved so much in the years since being named the first Young Horticulturist of the Year, 20 years ago.
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.
OPINION: Microplastics are turning up just about everywhere in the global food supply, including in fish, cups of tea, and…
OPINION: At a time when dairy prices are at record highs, no one was expecting the world's second largest dairy…