Pallet maker retains Fonterra contract
Timpack, one of New Zealand's largest wooden pallet and bin manufacturers, has been rewarded an exclusive contract to supply Fonterra.
Former Fonterra chairman John Monaghan says the co-operative’s capital structure isn’t broken, but needs tweaking to ensure it remains fit for the future.
He told the co-operative’s annual meeting in Masterton that a revised capital structure will help Fonterra execute its strategy successfully.
“The objective of our review is to ensure our capital structure is fit for the future,” says Monaghan who stepped down from the board this month after 12 years.
“We’re not trying to fix something that is broken.”
Monaghan gave shareholders a glimpse into the capital structure review currently being conducted behind closed doors by management and the board.
“We started by identifying what the key elements of a financially sustainable co-op are, and then defined our ‘problems to solve’.
“To address these challenges, we are now looking at a whole range of alternative structures, as well as options within our current structure, and we are thoroughly testing them against the design principles.”
Monaghan hinted that there would be some difficult decisions for shareholders ahead.
“There is no easy answer…every structure involves trade-offs,” he says.
Fonterra’s board and management are expected to take their proposals to farmers soon.
“When we are in a position to do so, we will work with farmers and the Shareholders Council to reach a decision that takes us forward, together,” he says.
Fonterra’s new strategy, unveiled last year after two consecutive years of losses, focuses on three goals – healthy people, healthy environment and healthy business.
It also focuses on New Zealand milk, rather than setting up milk pools overseas.
Monaghan noted that there was still a high level of uncertainty as to how the global recession and new waves of Covid-19 will impact demand for dairy globally.
He believes the best way of coping with uncertainty is to stay on strategy and to focus on what is within the co-op’s control.
“We were match fit when Covid struck, with a new strategy, structure, and culture. That has us well positioned to come out the other side where there will be new opportunities,” he says.
Monaghan says he remains very optimistic about the future of the industry and Fonterra.
“Roughly six billion people around the world rely on dairy products as one of their most important sources of protein and energy. We’re not out to feed the whole planet; the point here is that the opportunity for us is significant.
“People will always pay for quality, and we produce what I believe is the best milk in the world.
“Our continued success will rely on our ability to balance sustainable economic returns with the continued regeneration of our environment. I firmly believe that through a strong co-op we can achieve both.”
The 2025 South Island Agricultural Field Days (SIAFD) chairman, Rangiora farmer Andrew Stewart, is predicting a successful event on the back of good news coming out of the farming sector and with it a greater level of optimism among farmers.
WorkSafe New Zealand is calling on farmers to consider how vehicles move inside their barns and sheds, following a sentencing for a death at one of South Canterbury’s biggest agribusinesses.
Now is not the time to stop incorporating plantain into dairy pasture systems to reduce nitrogen (N) loss, says Agricom Australasia brand manager Mark Brown.
Building on the success of last year's events, the opportunity to attend People Expos is back for 2025, offering farmers the chance to be inspired and gain more tips and insights for their toolkits to support their people on farm.
Ballance Agri-Nutrients fertiliser SustaiN – which contains a urease inhibitor that reduces the amount of ammonia released to the air – has now been registered by the Ministry of Primary Industries (MPI). It is the first fertiliser in New Zealand to achieve this status.
Precision application of nitrogen can improve yields, but the costs of testing currently outweigh improved returns, according to new research from Plant and Food Research, MPI and Ravensdown.
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