increase font size
Fonterra Co-operative Council chair John Stevenson.
Fonterra shareholders are concerned with a further decline in the co-op’s share of milk collected in New Zealand.
Last season, the co-operative’s share of NZ milk dropped to 78.1%, below a target of 79%.
Fonterra Co-operative Council chair John Stevenson told the co-op’s annual meeting in New Plymouth yesterday that farmers are concerned.
“Council sees retention of milk as a key measure of success of the introduction of the flexible shareholding capital structure and Fonterra’s revised strategy,” Stevenson says.
Fonterra chairman Peter McBride agreed that its faces increasing competition for both milk and capital at home. However, he says opportunity still exists for the co-op.
“We are and always will be a New Zealand farmer-owned co-op, but we are also a global export business. When considering our strategy, we need to challenge ourselves to look beyond the back fence, and past the here and now.”
He also noted that the world was moving out of an era of trade liberalisation and co-operation and into a world that is more expensive, competitive and volatile. Expectations are evolving and New Zealand milk is becoming scarce, he notes.
“Customers are increasingly calling on us to partner with them to improve their sustainability and innovation capabilities. And there’s even more focus on sustainability from banks, regulators, and from a market access perspective.
“The cost of capital has increased, and many industries – including agriculture and our bankers– face higher capital requirements.
“In this new global context, Fonterra also faces increasing competition for both milk and capital here at home. That all sounds inherently negative, and it’s certainly not without risk, but the opportunity for us still absolutely exists.
“Demand for dairy continues to grow and, in a rapidly changing world, we are uniquely positioned to capitalise on any shifts.”
McBride says Fonterra has high quality New Zealand milk which is becoming scarce.
“And most critically, we have scale. That gives us great confidence in the future of our co-op. Success will come by focusing on our comparative advantages, simplifying the business to meet that, and then aligning our people to achieve that singular vision.”
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
If there was a silver lining in the tragedy that was Cyclone Gabrielle, for New Zealand Young Grower of the Year, Grace Fulford, it was the tremendous sense of community and seeing first-hand what good leadership looks like.
New research could help farmers prepare for a future where summer rainfall is increasingly unpredictable and where drought risk is rising, no matter what.
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…
