Silver Fern Farms makes second loss – Alan Williams:
Silver Fern Farms made a pre-tax loss of $36.5 million in the year ended September 30, on top of its $42m loss the previous year.
The company has negotiated a new debt package with its banks for a two-year period, with a first-year facility of up to $609m, chief executive Keith Cooper said.
The preliminary result did not disclose total assets at balance date, but at the same time in 2012 Silver Fern had $316.6m of borrowings funding total assets of $796m.
The latest loss was disappointing and unacceptable, outgoing chairman Eoin Garden said. . .
(BusinessDesk) – Silver Fern Farms, New Zealand’s biggest meat processor and marketer, narrowed its annual loss as it deals with the “collapse” of the sheep meat market last year, and is mulling options for a sector-wide overhaul to inject some life in the industry.
The net loss narrowed to $28.6 million in the 12 months ended Sept. 30 from a loss of $31.1 million a year earlier, the Dunedin-based company said in a statement. Sales slipped 1.5 percent to $2 billion. The company blamed last year’s sheep meat market spike and subsequent collapse for the two years of losses, and said it has completed a programme to work through the downturn.
“Market consumption and pricing continued to decrease in the first half of the 2012/13 year, resulting from further writedowns of balance date stocks,” chairman Eoin Garden said. “In reality, the market collapse dramatically impacted upon two financial years due to large stock positions over the September 2012 balance date.” . . .
Silver Fern Farms and the Alliance Group, agree that further consolidation is needed in the meat industry.
But both big farmer-owned co-operatives see different obstacles in the way of the farmer campaign to merge the two co-ops as the starting point for forcing wider changes in the industry.
The Meat Industry Excellence group is frustrated at the failure of the major processors and exporters to agree on any reform measures after months of discussions. It is pushing a merger idea in co-op board elections currently underway.
However, Alliance Group chair Murray Taggart of Canterbury says it does not support the view that the co-operatives should be the main vehicle for consolidation and bear the costs. . .
Hopes scare a ‘turning point’ – Sally Rae:
Federated Farmers chief executive Conor English hopes Fonterra’s recent whey contamination scare is a ”turning point” for New Zealand.
Addressing the recent Global Food Safety Forum in Dunedin, Mr English likened the fiasco, which turned out to be a false alarm, to the earthquakes in Christchurch.
Christchurch now had a better city and he believed the incident should be like an earthquake for Fonterra and the dairy industry. . .
[I think it’s a bit premature to say Chirstchurch now has a better city, but it is getting better]
Fonterra today welcomed a new Dairy Cooperation Arrangement between the New Zealand Government and Sri Lankan Government signed by Sri Lankan Minister for External Affairs Gamini Lakshman Peiris and New Zealand Minister for Foreign Affairs Murray McCully on the sidelines of the Commonwealth Heads of Government meeting in Colombo yesterday.
Fonterra Director and farmer-shareholder John Monaghan, who was in Colombo representing Fonterra at the Commonwealth Business Forum earlier this week, said the agreement will help formalise and support further public and private sector dairy sector cooperation between the two countries.
“The New Zealand dairy industry and Fonterra have a long history working with the Sri Lankan dairy industry. . .
Fonterra has donated $100,000 to ChildFund New Zealand to support its relief and recovery efforts in the Philippines following the devastating Typhoon Haiyan.
The money will provide desperately needed food, water and essential hygiene items and help to establish safe spaces for children.
Fonterra chief executive Theo Spierings said the co-operative is encouraging its farmers and employees to donate. . .
Two Hawke’s Bay wineries represented the region at a huge wine fair in Hong Kong and report that there is keen interest in wines beyond those from Marlborough, with importers and distributors wanting to know more about local wines.
Elephant Hill Estate and Winery and Moana Park manned the Hawke’s Bay Winegrowers Inc. stand that was part of the Hong Kong International Wine and Spirit Fair held over three days earlier this month that attracted over 20,000 buyers. . . .