Revamped Fonterra to be ‘more capital-efficient’
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
The total payment to growers for New Zealand-grown fruit also grew 22% on the previous year to $1.143 billion, with average return per hectare reaching a record $60,758.
"Sales volumes were up 21% from the previous season, with sales of 131.6 million trays in the 2015/16 season" says chairman Peter McBride.
"This included sales of 117 million trays of New Zealand-grown kiwifruit– nearly 22 million trays more than the previous year – and 14.5 million trays of non-New Zealand kiwifruit."
As further recovery from Psa kicks in, NZ Gold totalled 32.3 million trays including 27.5 million trays of SunGold compared to last year's NZ Gold 18.6 million trays including 10.6 trays of SunGold.
Returns were $71,080 per hectare gold OGR and $8.21 per tray gold OGR compared to last season's $73,890 per hectare gold OGR and $9.80 per tray gold OGR.
Zespri's corporate net profit after tax in 2015/16 was also strong, increasing by $1.2 million to $35.8 million, with a final full-year dividend of 24 cents per share.
Zespri chief executive Lain Jager says each season brings its own challenges and opportunities.
"We remain focused on consistently delivering our strategy over time and staying on track to provide the world's best portfolio of kiwifruit 12 months a year," he says.
"For the 2016 season and beyond, Zespri will focus on growing demand ahead of supply as our volumes grow strongly and growing our share of the market with a premium price positioning."
McBride says the industry was encouraged to see the progress made in implementing the recommendations of the Kiwifruit Industry Strategy Project or KISP.
The industry asked the government to amend the regulations to allow for better shareholder alignment with production, update the definition of Zespri's core business and provide the regulator Kiwifruit NZ with a broader skill set and more independence.
"We're pleased that the government has agreed to change the regulations to allow these three changes, which ensure that New Zealand kiwifruit growers continue to own and control Zespri into the future."
He says these regulatory changes are part of a broader package of initiatives including formation of a National Maori Growers' Forum.
- The record volume of SunGold of 27.5 million trays (from total New Zealand gold volume of 32.6 million trays) sold in excellent time, earning an average return for the gold pool of $8.21 per tray.
- The record per hectare Green return of $56,673 (up from $53,884 last year)
- Continued investment in Zespri's Northern Hemisphere production to grow SunGold supply alongside the growth in NZ volumes.
