increase font size
New Fonterra director Leonie Guiney and husband Kieran at the co-op’s AGM.
Fonterra is dropping a target to achieve 30 billion litres of milk volume by 2025.
The announcement by chief executive Miles Hurrell marks a major departure from the V3 strategy implemented by former chief executive Theo Spierings.
In 2012, Spierings unveiled its V3 strategy involving “volume, value, and velocity” aimed at increasing milk production volumes to ensure Fonterra maintains its share of the growing dairy market, driving more value from its milk through higher-value products, and doing so at speed.
Hurrell told Fonterra’s annual general meeting last week that when he took over a few months ago, he promised to take stock of the business, get the basics right and ensure more realistic forecasting.
“We have dropped our volume-based ambition,” he told about 400 farmers at the AGM held at its Lichfield plant in South Waikato.
“Our ambition to achieve $35 billion in revenue from 30 billion LMEs (liquid milk equivalent) by 2025 created confusion because it places too much emphasis on volume.
“Our co-op is not about being big for the sake of it.
“We’re about creating value for our farmers, our unitholders and for NZ. That doesn’t change.”
Hurrell also spoke of the need to maximise the NZ milk pool and not creating volume through farm developments around the world.
“When we shifted to talking about off-shore milk pools, we also created confusion.
“The concept of global milk pools can sound like we are creating volume through farm developments around the world.
“This is not what we are doing; I think it is important to clarify this.”
Hurrell says Fonterra’s approach has always been to generate global demand for its full suite of NZ-made products.
Hurrell says Fonterra has long-standing relationships with farmers in Australia and Chile.
“These allow us to make products locally, meet demand in overseas markets and take advantage of any lower tariffs that may exist. “This continues to be the right approach.”
Fonterra’s China farms recorded a direct loss of $9m last year.
In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.
A four year trial has reaffirmed that mixing plantain into dairy pastures can help reduce nitrogen losses to freshwater while maintaining milk production and profitability, say researchers.
Fonterra has opened its upgraded Chengdu Application Centre, bringing New Zealand dairy expertise closer to customers in one of China's fastest-growing regions.
Tatua chair Stephen Allen says he leaves the co-op with a deep sense of gratitude for the people who have contributed to its success.
Federated Farmers president Colin Hurst and his family raised a glass of milk last week to toast the start of a new addition to their farming operation at Makihihi, south of Timaru.
Celebrating 50 years in the rural landscape of Central Canterbury and beyond, Ashburton-based Carrfields, has been the exemplar for all aspects of modern agriculture via its extensive range of services including supply, growing, agronomic advice and marketing.
For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.
West Otago dairy farmer Luke Kane has been awarded the 2026 Rabobank Dr John Morris Business Development Prize.
OPINION: As the general election approaches, political parties are churning out policies in the hope of attracting more votes.
An LIC bull, Tronnoco AR Sadio-ET S3F, bred by Tony and Keri O'Connor of Tronnoco Farming Co Ltd near Timaru, has won the 2026 Mahoe Trophy.
With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.
OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided…
OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.
