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.
Could Fonterra have predicted the current downturn in dairy prices?
That’s the question the co-op board is looking into, doing more analysis of international markets to determine whether the downturn could have been forecast correctly, says chairman John Wilson.
He told Rural News that during the last 12 months the co-op found it “increasingly difficult” to forecast prices.
Other dairy companies around the world faced a similar problem. “I was in Europe recently and their two major cooperatives -- Arla and FrieslandCampina -- said they also have struggled to forecast.”
He says “unexpected significant events” also impaired their ability to forecast correctly.
Milk production in Europe boomed as prices rose; Russia’s ban on European and Australian dairy products caused the global market to flood with milk; and supply/demand analysis in China was affected by inability to get accurate data.
Wilson says Fonterra is keen to find out if the current downturn could have been correctly forecast.
Meanwhile Wilson says the growth in global milk production is slowing as low returns force farmers to milk fewer cows.
Growth in Europe for the year ending July 2015 was less than 1%. DairyNZ expects New Zealand milk production to be down 2% this season.
In the US, milk production varies between the West Coast and Mid-West regions; milk production across the US is expected to grow 1.5-2% but the domestic demand is growing.
Wilson says the drop in production is pleasing in respect of commodity pricing. He expects less milk to help lift prices but cautions that the next six months will be crucial.
“A lot depends on weather conditions and how much milk is produced around the world,” he says.
Farmers worldwide are struggling to sell milk below the cost of production.
NZ farmers are looking at their farm systems -- looking to maximise pasture usage and buying less supplement.
While the global market is awash with milk, demand is varied across the markets, says Wilson. Demand in Middle East and Africa is significantly up while South American demand is down due to economic weakness.
In China, the world’s biggest market for dairy products, demand is soft as the country works through large inventories. “There has also been strong milk production in China in 2014.”
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.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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