Medals galore for Fonterra cheeses
Fonterra cheeses are continuing their golden run at the annual New Zealand Cheese Awards.
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.”
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.
OPINION: We have good friends from way back who had lived in one of our major cities for many years.