Thursday, 09 December 2021 12:08

Fonterra farmers are under 'enormous pressure'

Written by  Sudesh Kissun
Fonterra chairman Peter McBride says farmers are under enormous pressure. Fonterra chairman Peter McBride says farmers are under enormous pressure.

Fonterra chairman Peter McBride has acknowledged that despite the co-op’s improved performance, many shareholders feel under enormous pressure.

He says the rate of change on-farm, Covid, labour shortages and environmental reforms have pushed many farmers into protest, and others out of the industry.

He told Fonterra’s annual general meeting in Invercargill today that some of that change is being driven by regulation.

“More so, it is being driven by consumer, customer and community expectations,” he says.

McBride told the meeting that last year one of Fonterra’s biggest customers stopped doing business with 47 of their suppliers because they did not meet their sustainability standards.

“These suppliers couldn’t help them achieve their future sustainability targets.”

McBride reminded farmers that they need to learn to live with constant change.

“An industry that understands consumer insights and has a customer orientation will ultimately be successful.

“Coordinated change at a national level is also necessary if we want to keep the commercial competitive advantage that comes with being the world’s most carbon efficient dairy farmers.”

He says through a science-backed approach and nationally coordinated investment, together both industry and Government can solve the significant challenges of methane and water quality, while continuing to grow the sector’s export earnings at a sustainable pace.

“Fonterra will do our bit. One of the responsibilities of being a national co-operative of scale is having a meaningful voice in conversations with the Government about realistic timeframes for the changes that are needed.

“Our scale also affords us the mandate and resources to be part of the search for solutions on behalf of farmers.

“That’s why, as part of our long-term strategy, we announced our intention to approve funding of $1 billion for sustainability initiatives to meet the co-op’s environmental commitments and develop more sustainable offerings for customers.

“We also announced an intention to increase spending on research and development to approximately $160 million a year by 2030, that’s a 50% increase on today.”

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

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

» Latest Print Issues Online

The Hound

Why?

OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents…

Fat to cut

OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter