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.
NZ dairy farmers need to keep the focus on the cost of production, because New Zealand is the only system in the world that can live through the current volatility, says Fonterra chief executive Theo Spierings.
"I know it's not nice but the scene in Europe is much worse than what you see here because their cost price is almost double," Spierings told Dairy News.
The middle to long term prospects are "absolutely good", he says.
"Our strategy is connected to the market opportunities and our strategy is working," he says. "But at this point in time .... There are multiple areas in the world, demand pools, which have dried up for a while.
"While the middle to long term is positive, the farmers will have to manage through these low prices and the only way to do that is manage your cost price.
"We will try to do get as much money from the market as possible, but cost price on farm is crucial. We have to turn the wheel, get value from the market. Our farmers are focusing on cost."
Farmers will hopefully have enough to keep going with the current forecast of $4.50/kgMS farmgate milk price, with the 50c support and 40-50c earnings per share, bringing the payout to a potential $5.60 including the loan.
"I really do believe in the second half of this year we could see a completely different scene with a significant weather event."
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.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.