Synlait has reported an underlying net profit after tax (NPAT) of $12.3 million for the first half of the 2016 financial year (HY16).
In contrast to $0.4 million in HY15, this improved performance is primarily the result of increased nutritional sales in canned infant formula.
“We’re glad to deliver a solid result for the first half of FY16. Our significant investment in customer and product development, people, plant and operating systems in recent years is beginning to transform our earnings,” said Chairman Graeme Milne. . .
Global market conditions for dairy products point to at least two more seasons of low milk payouts in New Zealand, Westland Milk Products told shareholders today as the co-operative revised its predicted payout for the 2015-16 season to $3.90 – $4.00 per kilogramme of milk solids, down from last month’s prediction of $4.00 – $4.10.
Westland CEO Rod Quin said the major driver of the revised payout remains the global oversupply of milk, compounded by the ongoing high availability and aggressive approach by the European dairy market.
Quin and Westland Chair Matt O’Regan have recently returned from Europe where they met with customers, farmers, processors, traders and industry advocates. . .
Fonterra makes best of a bad job – Allan Barber:
The PR spin has been pretty active signalling a much improved half yearly result which was duly delivered this morning. The company confirmed a 40 cent dividend for the full year with the interim dividend being paid next month as usual and the final dividend being paid in two tranches in May and August instead of October.
This improvement in cash flow will do something, but not a lot, to comfort farmers labouring under a debt burden. Unfortunately it will do absolutely nothing to support sharemilkers who will have to rely on their share of the milk payout. Predictions for the rest of 2016 are notable for their conservatism, probably in recognition of a disappointing track record when forecasting the extent of the current downturn. . .
Fonterra’s six-month results – good news but some underlying issues – Keith Woodford:
As expected, Fonterra has announced a greatly enhanced six-month profit for the period ending 31 January 2016. The profit of $409 million (NPAT; i.e. net profit after finance costs and tax) is up 123% from the same period in the previous year.
The expected full year profit of 45-55c per share implies an annual profit of about $800 million compared to $506 million for the full year 2014/15.
These figures are all very much in line with expectations . The reason for this is that when milk prices to farmers are low, then Fonterra has low input costs. Accordingly, there is more scope for corporate profit. . .
No matter which branch of farming you are in, you will face tough times, says Nelson farmer and Horticulture NZ President Julian Raine. When that happens, don’t be too proud to ask for help.
Speaking to the Farming Show’s Jamie Mackay as part of the Getting Through Adversity radio series, Julian said that even with the best planning, erratic weather events can cause mayhem. Jamie suggested that growing fruit crops is arguably one of the riskiest pursuits in farming: “One adverse event at the wrong time and suddenly your whole crop is wiped out. If you are a sheep farmer, for example, you at least have lambing spread over three weeks, or if you are dairy your risk is spread over nine months of milking.” . .
The Trans-Pacific Partnership (TPP) agreement eliminates all tariffs on beef into our biggest market, the United States, within five years of coming into force.
Trade Minister Todd McClay, speaking at the Canterbury Employers Chamber of Commerce this morning, says New Zealand exported meat products worth over $2.8 billion to TPP countries in 2015 and the gains once TPP comes into force will be significant.
“Our beef into Japan currently attracts a 38.5 per cent tariff. That has made it extraordinarily hard for our exporters to compete with other countries with lower tariffs. . .
The significant and persisting challenges in market conditions continue to weigh heavily on the nation’s farmers, with New Zealand’s rural confidence at the second lowest level recorded in the past 10 years, the latest Rabobank Rural Confidence Survey has shown.
Completed earlier this month, the survey found more than half of farmers surveyed (53 per cent) had a pessimistic outlook on the agricultural economy over the coming 12 months. This was significantly up from 30 per cent with that view in the previous survey, in late 2015. . .
Councils in rural areas might be forced to cut spending if the dairy downturn lasts for a long time, Local Government New Zealand head Lawrence Yule says.
A Westpac-McDermott Miller regional economic survey has shown big falls in confidence in major dairy areas including Waikato, Taranaki, and Southland.
Mr Yule said the businesses in many rural towns were already hunkering down as farmers tightened their spending, and that could spread. . .
NZX expects to receive regulatory approval for the new fresh milk futures and options product within two weeks.
Chief executive Tim Bennett said there was a demand for the fresh milk contracts product after Fonterra scrapped its guaranteed milk price product for the upcoming season. . .
The New Zealand government says it will help restore Fiji’s dairy industry which is losing thousands of litres of milk and was devastated as a result of last month’s cyclone.
New Zealand announced additional aid to help Fiji’s recovery on Wednesday.
A lot of that money is going into the continuing infrastructure rebuild led by the New Zealand Defence Force. . .
“Environmental champions” Richard and Dianne Kidd are Supreme winners of the inaugural Auckland Ballance Farm Environment Awards.
At a special Ballance Farm Environment Awards (BFEA) ceremony on March 30 (2016), the Helensville couple was also presented with the Beef + Lamb New Zealand Livestock Award and the Farm Stewardship Award in partnership with QEII National Trust and New Zealand Farm Environment Trust.
BFEA judges described Whenuanui Farm, the Kidd family’s 376ha sheep, beef and forestry unit, as “a show piece farm on the edge of Auckland city”. . . .
You’re about to meet a family of potato farmers who beat the odds to grow one of the country’s most successful independent chip businesses.
The Bowans are from Timaru and not only do they grow spuds, they transport them to their own factory and make the chips too.
Together they are Heartland Potato Chips.
It all started when Raymond Bowan decided to grow his own potatoes as a teenager. His son James Bowan has taken over running the family potato farm and unlike his old man, he doesn’t do it by hand anymore, there’s a flash piece of kit to help. . .
Those looking to be innovative with their food are wanted at the FoodSouth food development pilot plant on the Lincoln campus, but there are no Heston Blumenthal creations on the menu.
The final part of a national food innovation network, the facility provides three purpose-built independent food safe development spaces along with a variety of processing equipment — an extruder, ovens, dryers, enrober, mixers, and a mobile product development kitchen among them.
It enables businesses to develop product prototypes for market validation, trial new equipment, carry out scale-up trial work and sample manufacture in 20L to 200L batch sizes, conduct process development and improvement, and validate quality systems. . .
Sheep and beef farmer Warrick James has been elected as President of the Canterbury Agricultural and Pastoral Association for 2016 at the Annual General Meeting at Riccarton Park Racecourse on 30 March.
Based in Central Canterbury near Glentunnel, Mr James was confirmed as President of the 154th Canterbury A&P Show in front of outgoing President Nicky Hutchinson and Association Members.
“It means a lot to be President of the Canterbury A&P Association. We host the largest and most prestigious Show in the country – it really is the pinnacle of the A&P movement. Having been involved from a young age with my family and seeing my own children take part over the years just makes this even more special.” . . .
Trio spread cheer on woolshed tour – Suzette Howe:
At a time when life’s a bit tough for rural communities, a trio of Kiwi performers are setting off on a woolshed tour to boost morale.
They’re coming armed with their own stage curtain, a bar and plenty of laughs.
Over the next five weeks the talented ladies will transform more than 20 working wool sheds into live stages the length of the South Island.
They’re travelling by horse truck, carting hundreds of chairs, a bar, and full production set.
Farmer Georgie Harper says it’s hard to say no when the performance is brought to you. . .
Itinerary and booking information at The Woolshed Tour.