Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
Fonterra is reducing its 2011-12 forecast payout by 15c/kgMS as a result of declining commodity prices and a soaring Kiwi dollar.
The revised forecast comprises a farmgate milk price of $6.35/kgMS, down from $6.50/kgMS. The season's distributable profit range forecast of $570 million – $720m, equating to 40-50ckgMS/share remains unchanged.
Fonterra chairman Henry van der Heyden notes price declines in the five out of the last six Global Dairy Trade (GDT) trading events.
Overall, the GDT-Trade Weighted Index is down 5.7% since December 13 2011 when the forecast of $6.50/kgMS was announced.
He says the New Zealand dollar's continuing strength, higher levels of global milk production, and uncertainties in international markets led to the board decision to lower the Fonterra farmgate milk price forecast.
Fonterra chief executive Theo Spierings says the trends are indicating for stronger global production continuing into 2012.
"While we have had a strong start to the season in New Zealand, with record milk flows, we are also seeing higher milk production levels in the US and Europe.
"International milk powder demand, however, currently appears robust which should help offset the impact of the stronger milk supply growth.
"In the past few weeks, global markets seem to be reacting to the ongoing economic difficulties in Greece, the potential for conflict in the Middle East and China's reduced growth forecast. These events appear to be having a negative influence on most commodity prices.
"We think dairy commodity prices are likely to remain under some pressure through to mid-2012," says Spierings.
Fonterra will announce its interim results and dividend on March 29.
Prime Minister Christopher Luxon says the relationship between New Zealand and the US will remain strong and enduring irrespective of changing administrations.
More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.
The a2 Milk Company (a2MC) says securing more China label registrations and developing its own nutritional manufacturing capability are high on its agenda.
Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.
As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.
Livestock can be bred for lower methane emissions while also improving productivity at a rate greater than what the industry is currently achieving, research has shown.
OPINION: NIWA has long weathered complaints about alleged stifling of competition in forecasting, and more recently, claims of lack of…
OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the…