Fonterra rules out incentive to help farmers lower emissions
Fonterra chair Peter McBride says the co-operative isn't thinking about offering farmers any financial incentives for lowering their on-farm emissions profile.
Fonterra farmers acknowledge that the forecast 2023-24 farmgate milk price range of $6 - $7.50/kgMS is well below break-even point for many of them.
Fonterra Co-operative Council chair John Stevenson says of key interest to the council and to Fonterra farmers is to what extent the strong earnings and return on capital for FY23 can be sustained in FY24 and beyond.
The council notes that the top end of the FY24 forecast earnings range of 45-60 cents per share is above the FY24 target of 45-55 cents per share announced in September 2021, but well below FY23's normalised 80 cents per share.
"Management has reported that the favourable price relativities we've experenced across FY23 have reduced from their peaks," says Stevenson.
He says farmers haev reported to them that they are encouraged to see that the business is trying to improve underlying performance outside of stream returns through its focus on reducing costs across the co-op and the two new efficiency metrics that have been announced.
Council will take a keen interest in monitoring progress against these metrics when the FY24 interim results are announced, noting the FY23 figures of $1.39 cash cash operating expenses per kgMS and $9.21 gross profit from core operations per kgMS that were reported.
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Horticulture NZ chief executive Nadine Tunley will step down in August.
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
OPINION: It seems every bugger in this country can get an award these days.