Why Fonterra accepted defeat in the dairy aisle
OPINION: Fonterra's sale of its consumer dairy business to Lactalis is a clear sign of the co-operative’s failure to compete in the branded consumer market.
Conflicting messages from Fonterra and market analysts is causing grief to dairy farmers.
That's the view of Labour's primary industries spokesman Damien O'Connor who says that, on one day alone, Fonterra chair John Wilson was saying the market should pick up at the end of the year, while HSBC analysts were saying there is no chance this is likely to happen.
O'Connor says farmers who want to make better long term decisions are getting messages that are most alarming because they need a clear steer.
"While of course it is hard to predict the medium term market situation, the analysts and the farmers who own the company pretty much need to be on the same page when it comes to advice, and that is not happening," he told Rural News.
"Fonterra hasn't helped with its poor communications to farmers and the wider public. I have seen statements that are hopeful rather than helpful and I think farmers are getting a little tired of that and are seeing through it."
O'Connor says Fonterra has to speak out of both sides of its mouth given that it's talking to investors and unit holders on the one hand and to farmer suppliers on the other.
He believes farmers need to take a very conservative strategy in their businesses. Farmers who have already wound back their costs should continue to do so and others who haven't should do so immediately.
"I [favour] the long term projections by economist Peter Fraser that a $5.00 payout is the norm, plus or a minus a dollar. This means in a good year a $6.00 payout and in a bad year $4.00 and this is probably the paradigm farmers should be working in."
O'Connor believes the dairy industry is in for a major restructure and says there are indications that land prices will fall 20-40%.
Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.
OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.
DairyNZ says its plantain programme continues to deliver promising results, with new data confirming that modest levels of plantain in pastures reduce nitrogen leaching, offering farmers a practical, science-backed tool to meet environmental goals.
'Common sense' cuts to government red tape will make it easier for New Zealand to deliver safe food to more markets.
Balclutha farmer Renae Martin remembers the moment she fell in love with cows.
Academic freedom is a privilege and it's put at risk when people abuse it.
OPINION: For years, the ironically named Dr Mike Joy has used his position at Victoria University to wage an activist-style…
OPINION: A mate of yours truly has had an absolute gutsful of the activist group SAFE.