increase font size
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
Addressing the co-op’s annual meeting in Christchurch this morning, he says the changes re-shape the co-op toward its comparative advantages.
“What this means is a more capital-efficient co-op with the ability to invest further in upstream value add opportunities in our speciality ingredients and foodservice businesses,” says McBride.
Fonterra has announced investments in its manufacturing and supply chain, making the business well positioned to service the demand that sales teams are driving in-market.
McBride told shareholders at the meeting that next year they would see a continued focus on getting the basics right.
“We will be working hard on tighter cost management, reducing our cost of quality and improving our manufacturing efficiency.
“And second, a renewed focus on sustainable growth and new opportunities in our ingredients and foodservice businesses. You will see the co-op continuing to invest further up the value chain.
“Those investments will be within regional New Zealand, where our contribution to local communities will remain significant.
“With the Co-op’s foundations well set and our risk appetite better aligned to an intergenerational farming business, it’s time to put more energy into going after these growth opportunities,” he says.
McBride also provided an update on the $4.2 billion sale of the co-op’s global consumer businesses to Lactalis
Background work is continuing to secure the last regulatory approvals and to separate the Mainland Group business from Fonterra.
Some of the regulatory approvals required have been obtained, including approval from the Overseas Investment Office in New Zealand, which Lactalis confirmed they received last week.
McBride says other regulatory approvals are still pending.
“Subject to these steps being achieved, we still expect the transaction to complete in the first half of the 2026 calendar year, and we are still targeting a tax-free capital return of $2 per share to shareholders and unit holders once the sale is complete.”
.
In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.
A four year trial has reaffirmed that mixing plantain into dairy pastures can help reduce nitrogen losses to freshwater while maintaining milk production and profitability, say researchers.
Fonterra has opened its upgraded Chengdu Application Centre, bringing New Zealand dairy expertise closer to customers in one of China's fastest-growing regions.
Tatua chair Stephen Allen says he leaves the co-op with a deep sense of gratitude for the people who have contributed to its success.
Federated Farmers president Colin Hurst and his family raised a glass of milk last week to toast the start of a new addition to their farming operation at Makihihi, south of Timaru.
Celebrating 50 years in the rural landscape of Central Canterbury and beyond, Ashburton-based Carrfields, has been the exemplar for all aspects of modern agriculture via its extensive range of services including supply, growing, agronomic advice and marketing.
For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.
West Otago dairy farmer Luke Kane has been awarded the 2026 Rabobank Dr John Morris Business Development Prize.
OPINION: As the general election approaches, political parties are churning out policies in the hope of attracting more votes.
An LIC bull, Tronnoco AR Sadio-ET S3F, bred by Tony and Keri O'Connor of Tronnoco Farming Co Ltd near Timaru, has won the 2026 Mahoe Trophy.
With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.
OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…
OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…
