Tuesday, 01 December 2015 13:11

Higher returns demanded

Written by 
Under pressure: Fonterra shareholders council chair Duncan Coull; board chair John Wilson and chief executive Theo Spierings face journalists after the annual meeting. Under pressure: Fonterra shareholders council chair Duncan Coull; board chair John Wilson and chief executive Theo Spierings face journalists after the annual meeting.

Fonterra farmers are looking forward to higher returns as a result of the co-op's capital expenditure.

Shareholders Council chairman Duncan Coull says farmers have contributed their capital to support the strategy.

"It is now very important that these strategic initiatives are backed by tangible returns to our farmers on the investments they have made in the co-op," he told the annual meeting.

He says farmers are backing Fonterra's strategy of shifting more milk into higher returning products. "We can already see this working in the first quarter results announced recently."

He noted the co-op had used its strength to help farmers during a tough year, increasing earnings in the second half and raising advance payments.

"This demonstrated the co-op using its strength to help farmers when they needed it the most," Coull said.

Chief executive Theo Spierings told shareholders the co-op must "stay the course" despite market uncertainty.

He said the recent events in Europe, including the shooting down of a Russian plane by Turkey, are further compounding the markets. So Fonterra needs to stay the course and stay focussed on strategy.

"We look at things we're doing well and do them faster; things we're not doing well we need to improve on," he says. "These are the things we can control; we can't control the other things happening around the world."

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Featured

$52,500 fine for effluent mismanagement

A Taupiri farming company has been convicted and fined $52,500 in the Hamilton District Court for the unlawful discharge of dairy effluent into the environment.

Ospri brings Bovine TB testing in-house

The move to bring bovine TB testing in-house at Ospri officially started this month, as a team of 37 skilled and experienced technicians begin work with the disease eradication agency.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Arable advocacy?

OPINION: Spare a thought for the arable farmer, squeezed on one side by soft global prices and on the other…

Gaslight much?

OPINION: Labour leader Chris 'Chippy' Hipkins is carrying on the world-class gaslighting of the nation that he and his cohorts…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter