Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Fonterra says its decision to delay payments to some creditors by up to 90 days is nothing new and suppliers should "align" themselves to it.
Only 2000 of its 18,000 suppliers are affected, says chief financial officer Lukas Paravacini.
"We are aligning to a payment condition that always existed, and people should expect in [this time of low payout] to very quickly align.
"We are very conscious of the role we play in the community beyond our farmers. This [slow payment] touches roughly 2000 of the 18000 suppliers; we are not touching 16,000 of them because we understand the impact that will have."
Fonterra has extended by two months the time it takes to pay suppliers, from 30 to 90 days, saying this matches what it does in other countries.
It has also asked some suppliers to cut their charges by up to 20%.
A backlash by some businesses has prompted the Green Party to ask the Government to intervene; the party accuses Fonterra of using its size to bully its suppliers and contractors in rural areas.
Meanwhile, Fonterra will give an update of its debt level on March 23 when it presents half-year results.
Last year the co-op said its gearing ratio rose to 49.7% from 42.3% a year earlier, but was 46.4% when adjusted for a $900 million advance payment to farmers. The co-op formerly aimed for a gearing ratio of 40-45%.
Paravacini says the co-op spent heavily on its New Zealand operations last year. It has since decided not to increase its debt levels.
"We made it clear in our Q1 results that we expect gearing ratio to go to 40-45% by the year's end."
He says Fonterra remains a very sound business.
Federated Farmers president Wayne Langford is claiming “some real success” on the 12 policy priorities it placed before the Coalition Government.
Federated Farmers is throwing its support behind the Fast-track Approvals Bill introduced by the Coalition Government to enable a fast-track decision-making process for infrastructure and development projects.
The latest report from ANZ isn’t good news for sheep farmers: lamb returns are forecast to remain low.
Divine table grapes that herald the start of a brand-new industry in Hawke’s Bay have been coming off vines in Maraekakaho.
In what appears to be a casualty of the downturn in the agricultural sector, a well-known machinery brand is now in the hands of liquidators and owing creditors $6.6 million.
One of New Zealand’s deepest breeder Jersey herds – known for its enduring connection through cattle with the UK’s longest reigning monarch, Queen Elizabeth II – will host its 75th anniversary celebration sale on-farm on April 22.