Fonterra launches $1500 on-farm funding for eligible farmers
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Fonterra needs to sit closer to its customers and listen to their needs, because products are being invented that don't necessarily align with what customers want.
This startling admission by Fonterra chief executive Theo Spierings to the recent Dairy Womens Network conference came with further details.
"We need to sit close to our customers, sit close to the market," he said.
"You need not only to please your customers, but know what they want. We have good people in the market but they are kind-of 'hosts' or 'hostesses' for the customers.
"They don't translate [customers'] needs properly back to our innovation centre in Palmerston North and our factories."
Spierings says at present all the knowledge and innovation is deployed to invent something and push it out to the market. "We say 'you can buy it, but if you don't want to buy it, then don't buy it'. We need to sit closer to our customers and bring their needs back."
Spierings was outlining aspects of his planned market strategy at the conference on March 21, ahead of consideration by the board and a public release last week of the new strategy and the half year results.
He said Fonterra had the best customer base in the world, but "could not be everywhere". It needed to work out where it wanted to be in the world and to "increase its philosophy."
"We need to think how we can make dairy a driver of health in the world." How to deliver best nutrition for mothers and children, and for ageing people, how to meet demand for healthier choices and to deliver better, healthier convenience foods: these were key targets.
He says we "invent great things, and craft them well" but do not ask ourselves "can we win?" against the competition. We would be better supplying ingredients to big players in China such as Nestle rather than compete with them on product, Speirings says.
Instead of plant for products, New Zealand must think of the next generation of processing plant, such as spray dryers and packaging equipment.
Spierings warns we need to help China with its own milk production or risk losing business.
"We must link with the Chinese and build something with them together on the ground, based on their local milk – safe and good local milk.
"We must help them otherwise they will shut the door on imports of ingredients."
Ingredients demand from China will last 20 years at least, while the West – which drove global growth from 1980-2000 – is "now in trouble."
Trends that began in 2000 in the West, and are on track for 2030, include lower growth, higher unemployment, children who could be poorer than parents, and plateauing life expectancy.
Globally there will be increased connectivity, volatility, high capital and resources costs and increased problems for governments.
But Asia has an emerging middle class of 300 million people who want to buy our products.
A Chinese business leader says Chinese investors are unfairly viewed as potential security risks in New Zealand.
In the first of two articles focusing on electrification in New Zealand, Leo Argent talks with Mike Casey, operator of the 100% electric-operated Electric Cherries orchard and founder of advocacy group Rewiring Aotearoa.
A Foundation for Arable Research initiative which took a closer look at the efficiency of a key piece of machinery for arable farmers - their combine harvesters - has been recognised at the Primary Industry NZ Awards.
Prime Minister Christopher Luxon has reiterated New Zealand’s ‘China And’ policy, adding that it wasn’t about choosing one market over another but creating more options for exporters.
A long running trade dispute between New Zealand and Canada over dairy access has been resolved.
New Zealand Police is urging rural property owners to remain vigilant and ensure their property is secure.
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