Fonterra unveils divestment plan
Fonterra is exploring full or partial divestment options for its global Consumer business, as well as its integrated businesses Fonterra Oceania and Fonterra Sri Lanka.
The latest New Zealand Institute of Economic Research (NZIER) Quarterly Survey of Business Opinion shows a further strengthening in business confidence over the September quarter.
A net 26% of firms are expecting improved economic conditions over the coming months.
The improvement in confidence was broad-based across most regions, with optimists outnumbering pessimists in dairy-intensive regions such as Taranaki and Southland, the NZIER says.
The recent increase in global dairy prices and subsequent upward revision by Fonterra to its dairy payout forecast have reduced the risks to the dairy sector and boosted confidence. Nonetheless, confidence remains strongest in tourism-intensive regions such as Auckland, Otago and the Bay of Plenty.
Firms are also expecting a strong lift in demand in their own business, with a net 32% expecting an improvement in own trading activity over the next quarter – the highest level since mid-2014.
The building sector was again the standout sector, with confidence in the sector boosted by a strong pipeline of residential and commercial construction work. Rapid population growth has boosted demand for housing and new office buildings, and firms expect a further ramp-up in building activity over the next few years.
Despite the high levels of activity, capacity utilisation and pricing indicators in the building sector eased.
Hiring over the past quarter eased, in contrast to the surge in hiring intentions for the next quarter. A net 27% of firms are looking to increase headcount in the next quarter – the highest level for 43 years.
Firms report increased difficulty in finding labour, and this may have limited the extent to which firms could increase headcount over the past quarter. The difficulty in finding labour is particularly acute for skilled labour, with shortages at levels not seen since December 2007.
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.