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.
The $8.40/kgMS payout was probably the worst thing that happened to the dairy industry, says family corporate farmer Trevor Hamilton.
He says in the present era of market volatility and low payouts, farmers need to go and check the balance sheet and really delve into their cost structure.
Hamilton, who has farms in the North and South Islands, says farmers need to get costs down to about $3.50/kgMS.
"My personal view is that if you average the Fonterra milk price over the last ten years it's about $6.00. So medium term if you have a sound business at about $6.00 you are probably ok. But if you haven't, you could well do with an assessment of your business."
Hamilton says dairy companies such as Tatua and Westland Milk Products, with a higher percentage of value add products, are more shielded from the volatility of the commodity market. He says while Fonterra does have some value add products, it's a very small percentage of their business. But he says it's hard to blame Fonterra for this given that they have to take all the milk produced in NZ.
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.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
The Ministry for Primary Industries (MPI) has informed staff it will cut 391 jobs following a consultation period.
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