Medals galore for Fonterra cheeses
Fonterra cheeses are continuing their golden run at the annual New Zealand Cheese Awards.
Fonterra chairman John Monaghan says the co-op's new strategy sounds simple, but the best strategies often are.
Click here to read about Fonterra's new strategy.
“Simplicity shouldn’t be confused with a lack of ambition,” he said.
Fonterra’s earnings range forecast for 2019-20 starts at 15-25 cents per share. The five year plan is to achieve a target of 50c/share.
“Our starting earnings range reflects our change in culture. We will earn the right to make ambitious decisions by first doing the basics right and returning our balance sheet to a position of strength. That will give us options to go for the opportunities which we create in the future.”
The board also reviewed the dividend policy guidelines within the context of the new strategy. Monaghan says the new guidelines better reflect the annual performance and financial strength of the cooperative.
“Under the new guidelines, we would expect the dividend payment to be 40-60% of reported net profit after tax, excluding any abnormal gains, from what was previously 65-75% of adjusted NPAT over a period of time. An interim dividend will not be more than 40% of the forecast total dividend and no more than net earnings at half year.
“In addition to the new percentage of earnings, two additional key principles will guide our board when considering the payment of a dividend. A dividend should not require our co-op to take on more debt, and a dividend should not reduce our co-op’s ability to service existing debt.
“The distribution of any abnormal gains, such as an asset sale, will be considered separately,” he said.
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.
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
The opportunity to spend more time on farm while providing a dedicated service for shareholders attracted new environmental manager Ben Howden to work for Waimakariri Irrigation Limited (WIL).
Federated Farmers claims that the Otago Regional Council is charging ahead unnecessarily with piling more regulation on rural communities.
Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.
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