fbpx
Print this page
Tuesday, 18 June 2024 15:15

Cut the fat?

Written by  The Hound
Cut the fat?

OPINION: Fonterra's decision to exit the ‘value-add’ game and sell its consumer brands business seems to have been met with more cheers than jeers, although some commentators are wary of the strategy to simplify.

It seems to your old mate that most of the people with skin in the game – farmer shareholders – like the decision to strip the co-op down to a lean, mean commodity machine.

Fonterra’s track record in the consumer space hasn’t been stellar, and, if they keep their costs lean, stripping out the many fat salaries that come with a brands business, there’s nothing wrong with being one of the best dairy commodity producing businesses in the world.

Maybe they could also ditch that fancy office in Auckland! Let’s see that put to a vote!

More like this

Aussie farmers get A$8.60/kgMS as opening milk price

Aussie farmers get A$8.60/kgMS as opening milk price

Australian dairy farmers supplying Fonterra are getting an opening weighted average milk price of A$8.60/kgMS for the new season or around NZ$9.26/kgMS -  NZ74c less than New Zealand suppliers, based on the current exchange rate.

Are they serious?

OPINION: The Greens aren’t serious people when it comes to the economy, so let’s not spend too much on their fiscal fantasies.

A hurry up!

OPINION: PM Chris Luxon is getting pinged lately for rolling out the old 'we're still a new government' line when challenged on a perceived lack of progress on various policy promises.

Silver Thin Farms

OPINION: The Hound hears that tension was in the air at the recent Silver Fern Farms AGM, with the board reportedly dazed and confused at why their CEO would continue to hammer farmers to lower their emissions in perpetuity, without being able to state a dollar value for any of the touted premiums.

Popular Reads

Featured

LIC Space folds for good

Farmer co-operative LIC has closed its satellite-backed pasture measurement platform – Space.

Editorial: Time for common sense

OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).

National

Machinery & Products

Calf feeding boost

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…
JD's precision essentials

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…