Fonterra Cuts 2026/27 Milk Price Forecast to $9.25
Fonterra has reduced its forecast 2026/27 Farmgate Milk Price.
On the New Zealand Dairy Farmers Facebook page, which has over 30,000 members, farmers have been venting their frustration on possible reductions of face-to-face support.
It claims Fonterra intends to reduce the number of area managers from 45 to 20. Farmers are calling for Fonterra to retain the current number of area managers.
A Golden Bay farmer says their Fonterra local managers have “both been amazing, quick to respond and effective.
“The next level up isn’t so good”.
“I don’t think reducing the number of area managers is a good decision in the current time given how much uncertainty we are all dealing with,” complained another farmer.
Another Waikato farmer says she spoke recently with a Fonterra director.
“There have been more calls to him on this than any other issue he’s had while on the board,” she says.
Federated Farmers dairy section chair Richard McIntyre is aware of farmer concerns but points out that this is an issue for the Fonterra Cooperative Council to deal with.
“I spoke to council chairman (John Stevenson) a couple of weeks ago and told him it was his issue to deal with,” McIntyre told Rural News.
Stevenson says that questions on specific details of the proposal should be directed towards Fonterra management. He says the council is not consulted on proposals between Fonterra and its staff.
“We are not part of the decisionmaking process. Our role is to represent Fonterra farmers,” he says.
But Stevenson confirmed that councillors have received a considerable amount of feedback from Fonterra farmers recently.
“Council is actively communicating that farmer feedback and sentiment to the board.”
Stevenson says over the last 18 months it has regularly provided feedback to the board and to management on the importance and expectation of face-to-face support for Fonterra farmers.
He says support for Fonterra farmers is critical, especially during the current period of significant change.
“Council is awaiting the outcome of this process before it can comment publicly in more detail.”
Fonterra Defends Revamp
Fonterra says the revamp won't impact the total number of people working face-to-face with farmers.
Farm Source group director Anne Douglas says the co-operative knows how important that support is to farmers.
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Farm Source group director Anne Douglas. |
In a recent update to farmers, Douglas says the changes focus on three things - improving local support, improving phone and digital tools to make things easier, and ensuring the co-op is doing everything it can to maintain, and grow, sustainable milk supply.
“We want to provide a wider range of ways that you can connect with your co-op.
“And then no matter which one you choose, depending on your preferences and needs, we aim to enhance that connection.”
The co-op is introducing three new roles to on the ground teams: regional managers, co-operative services area managers and farmer support advisors.
Once the regional manager roles have been appointed in the coming weeks, they will get in touch with farmers to introduce themselves and the members of their team, Douglas says.
The new structure is set to be in place from 1 August 2023, but Douglas notes that positions may still be filled after that date.
