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Theo Spierings.
Fonterra chairman John Wilson says from a Fonterra governance perspective and the way the cooperative manages its business, its balance sheet is strong.
He also claims it has strong treasury policies on interest and foreign exchange risk. “So our position is very strong,” he says.
Hedging is managed through careful foreign exchange (FX) policy and everything is being run normally. “You will see that when the year-end results are released at the end of September; what our average exchange rate has been at the end of the year. And I think you will note at that time our treasury function performed very well in what has been a unique environment.
“We hedge in a very volatile environment, both for commodity prices and FX; and across financial markets and commodity markets generally we use a hedging policy to assist us to provide appropriate foresight in our forecasting for farmers and to manage the risk of volatility.”
Asked if they had rented warehouse space to stockpile milk powder as in 2008, Spierings says on the contrary they had had “an extremely strong July month of shipments”.
Spierings says the $500-600m capital spending reduction in the 2015-16 season will come from phasing new building and phasing offshore investment in farming, notwithstanding the essential investments needed to keep farms going in NZ.
He says they are in a strong position and there are no pressures on liquidity at the moment.
As dairy farmers lock in plans for the upcoming mating season, a partnership between Fonterra and Silver Fern Farms has been formed with the aim of making it simpler to create additional value from calves not entering the replacement herd.
South Waikato farmer Bas Nelis is always interested in fine-tuning his business to improve results.
Fonterra has reduced its forecast 2026/27 Farmgate Milk Price.
Fonterra's Whareroa site took home the prestigious Directors Award at the co-op's 'Oscars of Manufacturing', while Clandeboye led the way with multiple wins at this year's Best Site Cup.
After 25 years it is the right time to step away, says Colin Glass, the retiring chief executive of New Zealand's largest private corporate dairying company, Dairy Holdings.
The Ministry for Primary Industries (MPI) says no new cases of H5 bird flu have been detected following a case found earlier this week.
Two months after unveiling a major upgrade to its beef product, Halter says its farmers are on track for major production gains and additional grass growth.
New Zealanders are being urged to be alert following a confirmed positive case of H5 bird flu this week.
With a third of NZ dairy farmers still running outdated refrigerants, the country's largest farm refrigeration company says the opportunity for quick, meaningful emissions gains has never been clearer.
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As dairy farmers lock in plans for the upcoming mating season, a partnership between Fonterra and Silver Fern Farms has been formed with the aim of making it simpler to create additional value from calves not entering the replacement herd.
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