Expert Says Fonterra Backing Current Strategy With New CEO Appointment
The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.
The co-op has also announced a 2021-22 earnings guidance range of 25-40c/share.
Fonterra chief executive Miles Hurrell says the strong milk price is likely to continue.
“A high milk price is good for farmers and good for the New Zealand economy.
“However, this does have the potential to squeeze our sales margins and impact earnings.”
Hurrell says the impact of COVID-19 continues to be felt, particularly across the supply chain.
“We expect competitive tension in the global shipping market to continue this financial year. We have largely been able to mitigate this thanks to the strength of our Kotahi partnership which has allowed us to keep our product moving through the supply chain.”
The co-op’s final payout for last season is $7.74/kgMS; comprising farmgate milk price of $7.54/kgMS and a dividend of 20c/share.
