Why Fonterra accepted defeat in the dairy aisle
OPINION: Fonterra's sale of its consumer dairy business to Lactalis is a clear sign of the co-operative’s failure to compete in the branded consumer market.
Fonterra farmers are putting their co-op on notice over the decision to reduce milk price and not to pay any more dividend this year.
Read: Fonterra knocks off 5c from last season’s payout.
Fonterra Shareholders Council chairman Duncan Coull expressed his “absolute disappointment” with the board decision.
In a strongly-worded statement, Coull says the board and management have some challenges ahead in rebuilding confidence through consistent performance and prudent management of shareholders’ capital.
“Having effectively retained an extra 20-25 cents council will seek to understand how this will be used and to what extent it will influence our gearing and credit rating as the strength of both is fundamental moving forward.
“The board and management can look forward to some very challenging discussions with council over the coming weeks and we will be seeking a very clear understanding of the plans that are being implemented in order to restore confidence in the shareholder base.”
In a rare move, Fonterra has reduced last season’s milk price by 5c to 6.70/kgMS. While it has retained the previously announced 25-30 cents guidance range for the dividend, it has indicated that the 10c/share dividend paid in April will be all farmers and investors will be getting for buying Fonterra share units.
It says this is being done to prop up the co-op’s balance sheet.
Coull says while he can understand the board’s rationale and that it is prudent to protect the balance sheet, “but the fact that we find ourselves in this situation is unacceptable”.
“While council acknowledges that part of governance is managing risk, another key responsibility is to createlong-termm value for shareholders.”
NZPork has appointed Auckland-based Paul Bucknell as its new chair.
The Government claims to have delivered on its election promise to protect productive farmland from emissions trading scheme (ETS) but red meat farmers aren’t happy.
Foot and Mouth Disease outbreaks could have a detrimental impact on any country's rural sector, as seen in the United Kingdom's 2000 outbreak that saw the compulsory slaughter of over six million animals.
The Ministry for the Environment is joining as a national award sponsor in the Ballance Farm Environment Awards (BFEA from next year).
Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.
OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.
OPINION: For years, the ironically named Dr Mike Joy has used his position at Victoria University to wage an activist-style…
OPINION: A mate of yours truly has had an absolute gutsful of the activist group SAFE.