increase font size
Covid-related uncertainty continues to affect global dairy markets but strong demand from China is helping New Zealand farmers.
Fonterra chief executive Miles Hurrell says milk powders are proving resilient.
This allowed the co-op to recently increase the mid-point of the forecast farmgate milk price range to $6.80/kgMS.
“As it’s still relatively early in the season and we know a lot can change, we’ve still got a range of plus or minus 50 cents,” he told Fonterra’s annual meeting in Masterton today.
But there are some unknowns: how exchange rates will play out, milk supply from the EU and US and how Covid behaves globally.
Hurrell says obviously, the higher milk price puts extra pressure on Fonterra earnings but he says the co-op remains confident in its forecast earnings range is 20 – 35 cents per share.
“There are a few key assumptions that we’ve built into this forecast that are worth being aware of.
“The first is that we’ll see Asia and Greater China driving an improved trading performance as COVID-19 restrictions ease.
“The second assumption is that we’ll have lower financing costs and less significant one-off items, like impairments.
“And we are also assuming that we won’t see the same kind of price relativities between reference and non-reference products in Ingredients as we did in the second half of 2020 when the milk price softened.
“Whether or not these assumptions eventuate is not 100% certain.”
Hurrell says the co-op must stay on strategy, being agile and drawing on strengths across the supply chain to manage and adapt to changes around the globe.
One of the country's leading experts on China has praised the NZ Government for its handling of the recent incident with China over that country's cyber attack on two of our parliamentary institutions in 2021.
Hopes of NZ sheepmeat prices picking up anytime soon in the country's key export market of China looks highly unlikely.
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Zespri has unveiled the award-winning KiwiBrothersTM mascots in China for the first time to market its large kiwifruit crop.
Japanese consumers pay a premium for food that contains ingredients that support health.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
OPINION: The new government has clearly signalled big cuts across the public service.
OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…
