Divestment means Fonterra can focus on its strengths
OPINION: Fonterra's board has certainly presented us, as shareholders, with a major issue to consider.
Fonterra is urging its farmers to streamline the use of palm kernel expeller (PKE) on farm.
The co-op is recommending PKE guidelines to its farmers of a maximum of 3kg/per cow/per day and says this will future-proof its position as a supplier of high-quality pasture-based milk products.
PKE is a by-product of the palm oil industry in South East Asia; it is derived from the nut of the palm fruit after the oil is mechanically extracted.
PKE is a dry, gritty meal with a soapy smell and has low palatability until cows get a taste for it. However, PKE has reasonable levels of energy (ME) and protein, and is relatively easy to introduce to cows over a range of farm systems.
Fonterra group director cooperative affairs Miles Hurrell says that consumers globally are driving a trend towards dairy products that are sourced from pasture-based milk.
"More than ever consumers want to know what is in their food and where it comes from.
"We are in a unique position to make the most of this trend to enhance returns to our farmers who are already renowned for producing the best milk in the world. This recognition is a direct result of our farmers' pasture-based farming model.
"This gives us a key competitive advantage globally. Our milk products have an excellent reputation and we want to maintain that, and stay ahead of increasing consumer expectations. Already on GDT a premium is often paid for products made from New Zealand milk compared to products made from milk sourced in other countries."
This commitment has seen Fonterra advsing its farmers that it is establishing guidelines for the use of PKE) as a supplementary feed for dairy cows. Hurrell says going forward the cooperative is recommending PKE guidelines to its farmers of a maximum of 3kg/per cow/per day.
"After pasture, PKE is one of the cheapest supplementary feed options for farmers, and our data shows that use of PKE is increasing. We recommend our farmers follow these guidelines in order to future-proof the cooperative's position, while upholding our high standards of animal welfare.
"The recommended maximum of 3kg/per day/per cow is a voluntary guideline and we will be working with our farmers to help them maximise on-farm profitability while ensuring the health of their herd," says Hurrell.
Meat co-operative, Alliance has met with a group of farmer shareholders, who oppose the sale of a controlling stake in the co-op to Irish company Dawn Meats.
Rollovers of quad bikes or ATVs towing calf milk trailers have typically prompted a Safety Alert from Safer Farms, the industry-led organisation dedicated to fostering a safer farming culture across New Zealand.
The Government has announced it has invested $8 million in lower methane dairy genetics research.
A group of Kiwi farmers are urging Alliance farmer-shareholders to vote against a deal that would see the red meat co-operative sell approximately $270 million in shares to Ireland's Dawn Meats.
In a few hundred words it's impossible to adequately describe the outstanding contribution that James Brendan Bolger made to New Zealand since he first entered politics in 1972.
Dawn Meats is set to increase its proposed investment in Alliance Group by up to $25 million following stronger than forecast year-end results by Alliance.
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