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.
Regional New Zealand is punching above its weight in the relationship with its biggest trading partner, China.
Fonterra’s chief operating officer global operations, Rob Spurway, says increasing Chinese appetite for NZ dairy is helping drive our region’s economies and now 11% of all dairy in China comes from Fonterra farmers.
In a message to mark the Chinese Year of the Pig last week, Spurway noted that last year NZ exports to China were worth at least $16.6 billion, and $3.8b of that was generated by Fonterra in rural and regional NZ.
In total, about 25% of Fonterra’s exports go to China and are consumed by about 150 million people.
“We’re not just talking about milk powder either,” says Spurway.
Fonterra mozzarella tops at least 500 million pizzas and NZ cream goes into 500 million tea macchiatos every year. “A little bit of NZ is ending up on shelves and tables across China and in return that product is helping put food on Kiwi tables,” he adds.
China export earnings help generate income for forklift drivers in Darfield, Maungaturoto tanker operators, cheesemakers in Stirling and processors at the co-op’s plant in Te Awamutu, Spurway says.
“The benefits of our relationship with China flow into communities as our employees and farmers support businesses, schools and other local organisations across the country.”
Waikato is among Fonterra’s biggest regions for China exports, totalling $1.2b in cream, cheese and milk powder -- about $2500 per person in the region.
Of Fonterra’s 30 NZ sites, Clandeboye in Canterbury was the top producer, exporting about $566m of products to China, Southland’s Edendale exported nearly $560m and Whareroa, Taranaki exported $437m.
Chinese consumer demand has a year-long positive effect, says Spurway.
“I’m fortunate my job has taken me to China a fair number of times and my sense of pride is as strong as ever when I see our products on shelves, in bakeries and in beverages.
“It’s special knowing that a little bit of regional and rural NZ has found its way into the lives of people in Shanghai, Beijing and Dongguan.”
Penske Australia & New Zealand has appointed Stephen Kelly as the general manager of its Penske NZ operations, effective immediately In this role he will oversee all NZ branch operations, including energy solutions, mining, commercial vehicles, defence, marine, and rail, while continuing to be based at Penske’s Christchurch branch.
According to the latest Federated Farmers-Rabobank Farm Remuneration Report, released today, farm worker pay growth has levelled off after a post-Covid period of rapid growth.
The Climate Change Commission has recommended maintaining the current New Zealand Emissions Trading System (NZ ETS) settings but warns of a potential unit shortfall as early as 2028.
The Conservative Party warns that the upcoming free trade agreement between New Zealand and India may prioritise increased labour mobility while offering limited reassurance for New Zealand workers.
Southland District Council says it is actively managing the impacts of the current fuel supply challenges to ensure essential services across the district continue to operate safely and reliably.
A large crowd turned out for the last of the field days of the three finalists in this years Ahuwhenua Trophy to determine the top Maori horticulture entity in Aotearoa New Zealand
OPINION: Reckless action by Greenpeace in 2024 forced Fonterra to shut down a drying plant for four hours, costing the co-op…
OPINION: The global crusade against fossil fuel is gaining momentum in some regions.