Divestment means Fonterra can focus on its strengths
OPINION: Fonterra's board has certainly presented us, as shareholders, with a major issue to consider.
Fonterra has delivered some good news to farmers.
It has reported half-year normalised earnings before interest and tax (EBIT) of $665 million up 77% on the comparable period last year, and net profit after tax of $409 million up 123%.
Farmers will receive an interim dividend of 20c per share next month, easing some financial pain caused by the low payout. Last year Fonterra paid 10c as interim dividend.
The co-op has not changed its forecast payout, which remains at a milk price of $3.90/kgMS and earnings per share range of 45-55c.
Chairman John Wilson says that the supply and demand imbalance in the globally traded dairy market has brought prices down to unsustainable levels for farmers around the world, and particularly in New Zealand; the strong New Zealand dollar has also had a negative impact on the milk price.
"The low prices have placed a great deal of pressure on incomes, farm budgets, and our farming families," he says.
"Our priority is to generate more value out of every drop of our farmers' milk by focusing on the areas within our control. We aim to efficiently convert as much milk as possible into the highest-returning products.
"Our management is aware of the need for strong performance to ensure that we get every possible cent back into farmers' hands during a very tough year.
"We have lifted profitability from last season to this season, resulting in higher earnings per share to help offset low global dairy prices. As a result, we have delivered an interim dividend of 20 cents per share, up from an interim dividend for last year of 10 cents per share.
"Our forecast farmgate milk price of $3.90/kgMS reflects low global dairy prices, with whole milk powder decreasing around 17% cent this season to date. Forecast total available for payout of $4.35-$4.45/kgMS currently equates to a forecast cash payout of $4.30/kgMS after retentions for a fully shared up farmer."
Listed rural trader PGG Wrightson chair Garry Moore and his deputy Sarah Brown have been voted out by shareholders.
It was love that first led Leah Prankerd to dairying.
DairyNZ has appointed Dr Jenny Jago to a newly created leadership team role - science partnerships & impact advisor - as part of a strategic refresh of the organisation's science leadership.
OPINION: Public pressure has led to Canterbury Police rightly rolling back its proposed restructure that would have seen several rural police stations closed in favour of centralised hubs.
When I interview Rachel Cox, she is driving - on her way to her next meeting.
With Fonterra's UHT plant at its Edendale site less than a year from completion, demand continues to grow for products the plant will produce, such as Anchor Whipping Cream.
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…