Fonterra unveils divestment plan
Fonterra is exploring full or partial divestment options for its global Consumer business, as well as its integrated businesses Fonterra Oceania and Fonterra Sri Lanka.
Fonterra chief executive Miles Hurrell says the co-op cannot afford to repeat last year’s disappointing performance.
The co-op has forecast earnings of 15-25c/share for this financial year, based on a forecast EBIT range of $700-800 million.
“While this is down on last year, our forecast EPS (earnings per share) is up, reflecting lower interest and tax. To get here, we can’t repeat last year’s disappointing performance.
“The fundamentals of dairy remain strong.”
He says the world wants more dairy, and a growing middle class with high disposable incomes is looking for premium products.
“We believe we can create value from innovation, sustainability and efficiency.
“And our new strategy positions us well to leverage this.”
But at the same time, Hurrell says, the global economy is showing signs of slowing, with increasing trade tensions.
“Given our reliance on the international market, these are factors we continue to watch closely.”
On 2019-20 milk collection, he says milk collection forecast is similar to last year.
Fonterra has revised its milk price to a range of $6.55 to $7.55/kgMS – the fourth consecutive year of milk prices over $6/kgMS.
China’s Ambassador Wang Xiaolong says bilateral economic and trade cooperation between China and New Zealand has made significant and rapid progress.
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.