Unfair provisions in DIRA must go — Fonterra
Fonterra says some aspects of the dairy industry regulations are “tipping the playing field in favour of foreign exporters, at the expense of Kiwi farmers”.
Fonterra chief executive Miles Hurrell says a clear plan is in place to lift the co-op’s performance.
“It relies on us doing a number of things differently,” he says.
The co-op is taking stock of the business -- reviewing all investments, major assets and partnerships to ensure they still meet today’s needs.
“This will involve a thorough analysis of whether they directly support the strategy, are hitting their target return on capital and whether it can scale them up and grow more value over the next two-three years,” he says.
“This will start with a strategic review of the cooperative’s investment in Chinese baby food company Beingmate.”
Fonterra is also looking at “getting the basics right” and has begun acting to fix the businesses that are not performing.
Hurrell says financial discipline will be lifted throughout the co-op so debt can be reduced and return on capital improved.
Farmers will get more accurate forecasting.
The business will be run on more realistic forecasts with a clear line of sight on potential opportunities and the risks.
“It will also be clear on its assumptions, so farmers and unitholders know exactly where they stand and can make the decisions that are right for them and their businesses.”
Chairman John Monaghan says the co-operative is being clear with farmers and unitholders on what it will take to achieve the forecast earnings.
“For the first time, we are sharing some business unit specific forecasts. Among others, these see the ingredients and consumer and foodservice businesses achieving an EBIT of between $850 million and $950m, and between $540m and $590m, respectively.
“FY19 is about lifting the performance of our cooperative.
“We are taking a close look at the cooperative’s current portfolio and direction to see where change is needed to do things faster, reduce costs and deliver higher returns on our capital investments.
“This includes an assessment of all the cooperative’s investments, major assets and partnerships against our strategy and target return on capital.
A New Zealand Herald columnist, who questioned the retirement of former Fonterra chairman John Wilson in July last year, is…
Former Fonterra chairman John Wilson was farewelled in Hamilton today by family, co-op colleagues, farmers and friends.
Interest in once-a-day (OAD) milking is rising, says DairyNZ senior scientist Dr Paul Edwards.
An increased focus on exports for New Zealand tomatoes could see the sector double its 2014 value by 2020.
Former Fonterra chairman John Wilson passed away this morning after a hard-fought battle with illness, the co-op announced.
The Hound was disappointed but not surprised to see the multi-national, tax-dodging environmental group Greenpeace have another crack at NZers…
Your old mate reckons Fonterra is not the only dairy company in NZ now under pressure.