Fonterra’s $3.2b capital return to farmers set to boost rural incomes and NZ economy
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
Fonterra chairman Peter McBride has acknowledged that despite the co-op’s improved performance, many shareholders feel under enormous pressure.
He says the rate of change on-farm, Covid, labour shortages and environmental reforms have pushed many farmers into protest, and others out of the industry.
He told Fonterra’s annual general meeting in Invercargill today that some of that change is being driven by regulation.
“More so, it is being driven by consumer, customer and community expectations,” he says.
McBride told the meeting that last year one of Fonterra’s biggest customers stopped doing business with 47 of their suppliers because they did not meet their sustainability standards.
“These suppliers couldn’t help them achieve their future sustainability targets.”
McBride reminded farmers that they need to learn to live with constant change.
“An industry that understands consumer insights and has a customer orientation will ultimately be successful.
“Coordinated change at a national level is also necessary if we want to keep the commercial competitive advantage that comes with being the world’s most carbon efficient dairy farmers.”
He says through a science-backed approach and nationally coordinated investment, together both industry and Government can solve the significant challenges of methane and water quality, while continuing to grow the sector’s export earnings at a sustainable pace.
“Fonterra will do our bit. One of the responsibilities of being a national co-operative of scale is having a meaningful voice in conversations with the Government about realistic timeframes for the changes that are needed.
“Our scale also affords us the mandate and resources to be part of the search for solutions on behalf of farmers.
“That’s why, as part of our long-term strategy, we announced our intention to approve funding of $1 billion for sustainability initiatives to meet the co-op’s environmental commitments and develop more sustainable offerings for customers.
“We also announced an intention to increase spending on research and development to approximately $160 million a year by 2030, that’s a 50% increase on today.”
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.
The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.
Dignitaries from all walks of life – the governor general, politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.
Agriculture and Forestry Minister, Todd McClay is encouraging farmers, growers, and foresters not to take unnecessary risks, asking that they heed weather warnings today.
With nearly two million underutilised dairy calves born annually and the beef price outlook strong, New Zealand’s opportunity to build a scalable dairy-beef system is now.

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