Winston Peters calls Fonterra vote result 'utter madness'
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.
Fonterra says milk supply and demand remains finely balanced as it starts with a cautious opening forecast milk price for the new season.
The co-operative’s opening forecast range of $7.25-$8.75/kgMS, with a midpoint of $8/kgMS, is around 40c lower than what most banks are forecasting.
Fonterra chief executive Miles Hurrell says that while milk supply and demand dynamics remain finely balanced, China import volumes have also not yet recovered to historic levels.
“Given the early point in the season, the uncertainty in the outlook and ongoing risk of volatility in global markets, we are starting the season with a cautious approach,” says Hurrell.
For the season that has just ended, Fonterra narrowed the range to $7.70 to $7.90/kgMS, with a midpoint of $7.80/kgMS. And a strong performance from its food service and consumer channels allowed Fonterra to lift its earnings range to 60-70c/share, up from 50-65c/share.
The co-op also delivered its third quarter (Q3) results last week, recording profit after tax from continuing operations of over $1 billion, up $20m on the previous year.
Hurrell says the result is driven by continued strong earnings across all three of the co-op’s product channels.
He says foodservice and consumer channels in particular had a strong third quarter with a lift in earnings compared to the same time last year.
“Fonterra’s sales volumes were up slightly on last year by 38kMT, or 1%, due to higher sales volumes in our foodservice and consumer channels.
“We also saw price relativities ease over the quarter, and we anticipate them to narrow further in Q4 as they return to more historic levels.
“Gross margins remain strong across all three channels as our inmarket teams continue to drive pricing and volume. Foodservice and consumer volumes are up 4% and 7% respectively year on year, with margins consistent with Q2.”
Gross earnings of $1.44 billion reflected improved performance in foodservice and consumer, with ingredients down year-on-year following record highs in FY23.
“Our increased earnings range assumes softer earnings in Q4 due to the seasonality of our milk collections, the higher cost of inputs in the foodservice and consumer channels, and the impact of the investments in modernising our IT systems.
“Across Fonterra, operating expenses are up due to inflation, upfront costs of driving efficiency improvements and increased IT spend. Historically, some of this IT spend would have been treated as capex and capitalised on the balance sheet.
“We are heading into year-end with a strong balance sheet, with Fonterra’s underlying performance and lower debt position helping to further reduce our financing costs.”
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.

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