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 is selling its troubled China Farms business.
The farms, carrying 31,000 milking cows housed in a feedlot system, are now worth $500 million.
Over the past 10 years the co-op has invested over $1 billion in the farms with very little returns.
In its interim results announced last week, the co-op wrote down another $61m from the farms’ value. Last year it wrote down $200m.
Fonterra chief financial officer Marc Rivers says “new information” led to the latest writedown.
“Clearly as you go through a sales process, you get new information: this has to be considered as you look at value of assets on your book.
“The writedown reflects that, as we closed out the half year.”
Fonterra is also reviewing its joint China farming venture with Abbotts.
Rivers says it is continuing to look for opportunities to improve the performance of the business: the joint venture suffered a $65 million impairment to align with China Farms’ sale process and ongoing animal management costs.
Fonterra is also selling its joint venture stake in DPA Brazil: the co-op wrote down $31m in DPA’s value.
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.
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