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

Fonterra Announces Interim Leadership Changes Ahead of Richard Allen CEO Transition

Fonterra has announced interim changes to the leadership of its Global Ingredients business.

Expert Says Fonterra Backing Current Strategy With New CEO Appointment

The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.

Former Fonterra Director Urges Bipartisan Support for India Free Trade Agreement

A former Fonterra director with farming interests in India says he's surprised with the political posturing over the Indian free trade agreement.

Fonterra launches farmer-led youth dairy programme in Waikato and Bay of Plenty

A new farmer-led programme aimed at bringing young people into dairy farming is under way in Waikato and Bay of Plenty.

$10m Boost for Govt Coffers From Pāmu

State farmer Pāmu (Landcorp) has announced it will pay a $10 million special dividend to the Crown off the back of a strong outlook for the business and a capital repayment of $9.5 million following Fonterra's consumer business sale.

Featured

Āta Regenerative Brings Global Soil and Water Experts to New Zealand Farms

Āta Regenerative is bringing international expertise to New Zealand to help farmers respond to growing soil and water challenges, as environmental monitoring identifies declining ecosystem function and reduced water-holding capacity across farms.

Yili’s New Zealand Dairy Group Posts Record $1.58 Billion Revenue

Yili's New Zealand businesses have reported record profits following a major organisational and strategic transformation.

Hino Truck Owners Have 10 Days Left to Register for Proposed $10.9M Settlement

Owners and lessees of certain Hino Trucks New Zealand diesel vehicles have just 10 days remaining to register or opt out of a proposed $10.9 million class action settlement.

Silver Fern Farms Airfreights 90 Tonnes of Chilled Meat to UAE Amid Freight Disruptions

Silver Fern Farms has successfully produced and delivered 90 tonnes of premium chilled New Zealand lamb and beef to the United Arab Emirates via airfreight.

New Zealand Tractor Sales Climb 5% in First Quarter of 2026

For the first three months of 2026, new tractor deliveries saw an increase over the previous two months, resulting in year-to-date deliveries climbing to 649 units - around 5% ahead of the same period in 2025.

FAO Warns Strait of Hormuz Fertilizer Crisis Could Tighten Global Food Supplies Into 2027

QU Dongyu, director-general of the Food and Agriculture Organization of the United Nations (FAO), has issued a warning saying that global fertiliser scarcity caused by disruptions in the Strait of Hormuz will lead to lower yields and tightening food supplies into 2027.