Fonterra’s $3.2b capital return to farmers set to boost rural incomes and NZ economy
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
Beingmate is very close to appointing a chief executive officer, says Fonterra’s chief executive Theo Spierings.
Fonterra views this as the biggest step required at present, he says.
According to Spierings there is a mandate to execute a transformation plan and Beingmate returned a very small profit -- which includes a government grant.
“There was pressure on turnover because the market is coming out of new regulations; there is turnover pressure but a small profit,” he says.
All recommended directors were appointed at the annual meeting, “so a very calm and stable reappointment process of directors”.
Fonterra’s formula product Anmum had strong development in pilots in two cities in the first three years of the partnership. Anmum is an important pillar of the Beingmate business right now, Spierings says.
They are clearly on a pathway to a $100 million target in consumer products in year three. But cashflow and liquidity had an impact over the last couple of the months.
Spierings says it is “important that there is cash to the people buying and growing the Anmum business”.
Fonterra has written down $405 million in its Beingmate business.
“Clearly this outcome is unacceptable to our shareholders,” the co-op says in the report.
“The recovery of the value of this investment is the number-one immediate priority for the chief executive and management team.
“As an 18.8% shareholder, we do not have direct control over the company. But we are working to influence its direction and continue to call for an urgent business transformation through our relationship with Beingmate’s founder and majority shareholder.
“The board (Fonterra’s) has a working group – that includes independent directors Simon Israel and Clinton Dines – who both have significant China experience and expertise – to provide guidance and oversight to management as they work to recover the investment.”
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.
The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.
Dignitaries from all walks of life – the governor general, politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.
Agriculture and Forestry Minister, Todd McClay is encouraging farmers, growers, and foresters not to take unnecessary risks, asking that they heed weather warnings today.
With nearly two million underutilised dairy calves born annually and the beef price outlook strong, New Zealand’s opportunity to build a scalable dairy-beef system is now.

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