Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
A Fonterra shareholder says he doubts that consumers around the globe are clamouring for products with a low carbon footprint.
Garry Reymer, Cambridge, claims some of the co-operative's major customers are seeking to piggyback on Fonterra farmers' low carbon footprint to meet their politically driven environmental obligations.
Reymer, Waikato Federated Farmers dairy chair, says consumers of Fonterra products "just want a safe food that is high in protein at a good price".
"We should not confuse consumers with customers," he told Rural News.
Reymer's comments come as Fonterra prepares to unveil scope 3 targets - for farmers to reduce their greenhouse gas emissions behind the farm gate.
The co-op is warning that failure to tackle scope 3 emissions will lead to major customers and consumers walking away, and even embracing plant-based products.
Reymer says some of Fonterra's customers in the Northern Hemisphere and the European Union are pushing a climate change agenda.
"Most of the greenhouse gas demand is government to government or government to business or B2B, but very rarely demanded by the consumer," he says.
He says this was highlighted by a presentation at the recent Rabobank Farm2Fork conference in Sydney, where a cotton producer from South Australia went to London to canvas how much more consumers would pay for sustainably produced cotton chinos over standard products.
"The answer came back 10 pounds - certainly not enough to cover the extra cost to produce," Reymer says. "Most of our dairy exports go to the low value markets that Europe doesn't want to or need to supply."
He adds, if NZ needs to comply with European demands, we should be able to compete in their market so we can try to capture some value for our farmers.
"Everybody wants an organic or sustainabl produced product until they get to the checkout counter then they just want cheap - except for a privileged few."
Reymer says no one has yet been able to monetise GHG reductions to the farmer.
"It will only add cost."
He says farmers are waiting to hear Fonterra's plans on scope 3 emissions. "My pick is they will not be able to add value to my bottom line. The same goes for banks and other industries that service farmers," Reymer adds.
"Why you may ask has a bank not come out and said, 'if your GHG emisions are 'x' you will pay this rate of interest and if it is 'y', you pay another'.
"But now they want us to reduce emissions at our cost to meet their scope 3 targets, so that they can say to the Government that they are going fine, but the producer's margin is eroded."
The Rural Change programme, providing free private mental health professional sessions to the rural industry, is set to continue its next chapter within Rural Support Trust from 1 July 2024.
Beef + Lamb New Zealand chief executive Sam McIvor will step down in July.
A new report shows farm employers across the dairy, sheep and beef, and arable sectors have continued to invest strongly in one of their greatest assets – their staff.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
OPINION: The new government has clearly signalled big cuts across the public service.
OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…