Tuesday, 15 November 2022 08:55

New capital structure a step closer

Written by  Sudesh Kissun
Fonterra chair Peter McBride. Fonterra chair Peter McBride.

Fonterra chair Peter McBride hopes the Government reaches a decision on its new capital structure before the end of the year.

As 100 Fonterra farmers gathered for its annual meeting in Rotorua last week, the primary production select committee released its report on the legislative changes to the Dairy Industry Restructuring Act (DIRA).

McBride says it's another key milestone in the legislative process.

"We remain hopeful that the Government will reach a decision before the end of the year, after which we will move to the Flexible Shareholding structure as fast as possible."

In the past few years, the co-op has moved its strategy away from a global-volume play to a focus on deriving value from sustainable New Zealand milk.

McBride says that strategy is starting to deliver - as demonstrated by this year's milk price and earnings performance.

"Our customers are at the heart of our strategy.

"We will achieve our performance targets by continuing to deliver products to market in a way that meets their changing expectations."

McBride told the meeting that 73% of global consumers find sustainability pledges important when buying dairy products.

He says it's great news for a co-op that's strategy is focused on New Zealand milk and being a leader in sustainability.

"New Zealand dairy farmers already have the world's lowest carbon footprint.

"If we can maintain that advantage, we have an excellent opportunity to build mutually beneficial relationships with our premium customers.

"Maintaining a sustainable supply of that New Zealand milk, in an environment where we expect the country's total milk volumes to decline, has been a key priority for board and management over the past few years."

More like this

Fonterra posts solid results

Fonterra has delivered a solid half-year result, thanks to higher margins and sales volumes across the co-op's diversified product and category mix.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.

» Latest Print Issues Online

Milking It

Papal visit

OPINION: European farmers are going to extreme lengths to have their message heard.

Thai egg tarts

OPINION: The hustle and bustle of one of Bangkok's most popular fast food outlets may feel a world away from…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter