Thursday, 29 March 2012 16:52

Fonterra on track for $20 billion

Written by Adam Fricker

font size decrease font size increase font size
Print
Email

Fonterra Cooperative Group's half year results mean it could be on track for revenue of $20 billion.

"At this point last year Fonterra's half-year profit was $293 million, but in 2012, that's grown to $346 million," says Willy Leferink, Federated Farmers Dairy chairperson. "The big question for farmer-shareholders is whether the year's back end will remain as strong."

Declining results on Fonterra's GlobalDairyTrade auction platform back up opinion that soft commodities are undergoing a price correction, while the kiwi is high against the US dollar reducing farmgate returns even further.

"If the high dollar continues, it will start to cause problems," says Leferink. He says farmers should base their budgets on less than $6 per kilogram of milksolids. Anything more is "extremely brave".

More like this

Moxham Family's Organic Milk Now Comes as Gelato

Horowhenua organic dairy farmers Ange and Wayne Moxham have taken their business to a new level.

Milk Glut Drags Fonterra Forecast Down to $9.20/kgMS

A milk glut around the world shows no sign of easing, putting downward pressure on farmgate milk prices for the next few months.

Fonterra & Silver Fern Farms Launch Beef-on-Dairy Programme

As dairy farmers lock in plans for the upcoming mating season, a partnership between Fonterra and Silver Fern Farms has been formed with the aim of making it simpler to create additional value from calves not entering the replacement herd.

South Waikato Farmer Cuts Nitrogen With Soil Biology Trial

South Waikato farmer Bas Nelis is always interested in fine-tuning his business to improve results.

Fonterra Cuts 2026/27 Milk Price Forecast to $9.25

Fonterra has reduced its forecast 2026/27 Farmgate Milk Price.

Featured

Farm Safety Improves Through 'Incremental Gain', Says Birkett

Improving health and safety is about incremental gain rather than a sudden decision, says Leeston farmer and Federated Farmers health and safety spokesman David Birkett.

Editorial: The Price of Progress

OPINION: Alistair Carmichael raises some interesting questions about striking a balance between profitability in farming and preserving the character of rural communities.

NZ Ploughing Champions' Gear Stuck at Sea Before Worlds

Ploughing champions Mark Dillon and Malcolm Taylor earned the right to represent the country at the World Ploughing Championships in Osijek, Croatia, on 5 and 6 September, after winning their titles at the New Zealand Ploughing Championships in Middlemarch in 2025.

Gallagher Adds Second Production Line as Wearables Boom

The man appointed to lead Gallagher's global Animal Management business through the next stage of growth believes the wearables boom is here.

Moxham Family's Organic Milk Now Comes as Gelato

Horowhenua organic dairy farmers Ange and Wayne Moxham have taken their business to a new level.

Faulkner: Take Rural Infrastructure Out of Politics

Federated Farmers' new vice president Sandra Faulkner says the issue of adverse events emergency management and infrastructure needs to be taken out of the three-year political cycle.