US remains important market - Fonterra
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
Fonterra will soon introduce ‘financial innovations’ to help young farmers join the co-op.
Chairman John Wilson told the co-op’s annual meeting in Hawera this month of a scheme to enable young farmers to be fully share-backed owners.
Fonterra’s milk supply is being squeezed by independent processors. In Waikato, New Zealand’s second-largest processor Open Country Dairy (OCD) wants new suppliers for a plant it is building at Horotiu.
To supply Fonterra farmers must own one share for every kgMS; but OCD suppliers don’t need to own shares. For young farmers, paying for Fonterra shares can be difficult.
The co-op collected about 82.4% of NZ’s milk production in the 2016-17 season, down from 84.1% in 2015-16.
Wilson says Fonterra will continue to defend and grow market share in NZ and, importantly, grow offshore milk sources that complement NZ farmers’ milk.
“We will continue to develop new financial tools for all our farmers... to provide flexibility for succession within our industry. And we will... protect the cooperative’s capital structure.”
Wilson told about 150 farmers at the meeting that Fonterra must remain a co-op but must continue to evolve.
“It is vital that we stay strongly committed to our co-operative principles and steadfast on strategy. But we must also continue to innovate and evolve our cooperative.”
He noted that the pace of global change is seeing the deterioration of some of the world’s largest organisations.
The average lifespan of a company listed in the Standard and Poor’s index of leading US companies has dropped from 67 years in the 1920s to just 15 years.
In October Fonterra celebrated its 16th birthday.
Wilson says the board will challenge, mentor and support the management team in innovating across the supply chain.
“Not every change we make will be successful. If we fail we will pause quickly, take the necessary learnings and then continue to drive our cooperative forward.”
New tariffs imposed by President Donald Trump signal an uncertain future, but New Zealand farmers know how to adapt to changing conditions, says Auriga Martin, chief executive of Farm Focus.
A global trade war beckons, which is bad news for a small open economy like New Zealand, warns Mark Smith ASB senior economist.
Carterton's Awakare Farm has long stood as a place where family, tradition and innovation intersect.
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
Trade and Agriculture Minister Todd McClay says New Zealand's trade interests are best served in a world where trade flows freely.
New Zealand's red meat sector says it is disappointed by the United States' decision to impose tariffs on New Zealand exports.
OPINION: At last, a serious effort to better connect farmers and scientists.
OPINION: If you believe Maori Party president John Tamihere’s claim that “nothing dodgy” occurred at Manurewa Marae during the last…