Rural round-up

March 8, 2019

Test will come when new cattle rustling laws applied

Livestock rustlers could spend up to seven years in prison when new penalties are imposed but a Northland farming official says police need more resources to investigate and take rural crimes more seriously.

The Crimes Amendment Bill, which was passed unanimously by Parliament on Tuesday, makes theft of livestock or any other animal, including beehives and farm dogs, an offence liable for up to seven years in prison.

Also passed was the offence of unlawful entry on agricultural land with the intent to steal livestock or to act unlawfully against specified things such as buildings or machinery on that land — a crime which could see the offender put behind bars for up to a decade.

It makes it the same penalty as for burglary. . . 

Water levels drop and fire dangers rise as drought continues in Nelson – Tim Newman:

Water restrictions in Nelson continue to tighten as the region continues its long dry period into the beginning of Autumn. 

Nelson’s Maitai Dam, which supplies the city with drinking water, has seen its water levels drop significantly during that time. 

Nelson City Council infrastructure group manager Alec Louverdis said the dam was currently 71 per cent full.  . . 

The future of food production from a female perspective:

Nine influential Kiwi women from across the primary industries sector are gathering in Manawatu next week to discuss where-to-next for our food producing nation. They’re coming together as part of the ASB Perspective 2025 round-table discussion, which is a headline event at this year’s New Zealand AgriFood Week in Palmerston North.

It’s the fourth year ASB has been the main sponsor of New Zealand AgriFood Week, which is delivered by the Central Economic Development Agency, and its unique perspective panel is considered a must attend event at the Globe Theatre in Palmerston North. . . 

Majority of beekeepers vote against commodity levy on honey:

Commercial beekeepers have voted not to support the introduction of a honey levy with only 23.56% voting for the introduction of a commodity levy.

Commenting on the result Bruce Wills, Chair of Apiculture NZ, the industry organisation which led the commodity levy proposal says: “It’s no secret that this is not the outcome I, or the Board, wanted to see. I believe it will set back the development of the honey industry, but I understand that at present commercial beekeepers are hurting with the erosion in honey prices as a result of over-supply, for all floral types other than mānuka honey.” . . 

Bids for Fonterra’s Tip Top due in by Monday – Jenny Ruth:

(BusinessDesk) – Indicative bids to buy Tip Top ice-cream from Fonterra Cooperative Group are due in by Monday, according to the Australian Financial Review which says it has seen a copy of the confidential information memorandum.

Its Street Talk column says the business is being pitched by First NZ Capital as a “unique opportunity to invest in an iconic New Zealand company with 80 years of heritage.”

While the memorandum talks about Tip Top’s “unrivalled market position,” it also notes that Unilever, which has the rights to Magnum ice-cream and a host of dairy free products, dominates the premium end of the market where the fat margins are. . . 

Fonterra appoints Judith Swales COO Global Foodservice:

Fonterra CEO Miles Hurrell has confirmed Judith Swales to the role of Chief Operating Officer, Global Consumer and Foodservice. This follows her appointment to the role in an acting capacity earlier this year.

Miles Hurrell says “Judith has been providing strong leadership into our Consumer and Foodservice business unit, and the momentum she has gathered deserves to be continued.” . . 

Scales Corporation enters into petfood joint Venture with Alliance Group:

Diversified agribusiness Scales Corporation Limited today announced an agreement to enter into a petfood Joint Venture (JV) with Alliance Group Limited (Alliance). Under the terms of the JV, Alliance will pay $15 million to acquire a 50% interest in Meateor’s New Zealand business and operations.

Managing Director Andy Borland says: “We are pleased to enter into a partnership with one of New Zealand’s leading farmer co-operatives. This venture is about developing New Zealand as the premier supplier of petfood proteins. We think the venture provides a number of benefits to the entire New Zealand petfood-supply industry including as an avenue for the industry to improve scale; improved relationships with customers including the ability to commit to longer-term relationships; an ability to move into higher value and added value ingredients; and ability to leverage extended customer and supplier networks.” . . 


Rural round-up

March 7, 2019

Miles Hurell says Fonterra top job was never a done-deal :

The Country’s Jamie Mackay always thought Miles Hurrell would be a shoo-in for Fonterra’s chief executive position but the man himself says it was never a done deal.

“Far from it. They gave me an opportunity to see what we could do in that six months [as interim CEO] and clearly it’s worked. The board have liked what they’ve seen,” said Hurrell.

Fonterra’s new chief executive told Mackay he is well aware that he has a big job ahead of him. . . 

Years of work ahead to eradicate M. bovis, programme director says  – Brianna McIlraith:

More than 80,000 cows have been culled around the country as part of the effort to stop the spread of the Mycoplasma bovis disease, but eradication is still a long way off, the man in charge of the programme says.

Geoff Gwyn said another two years of ‘heavy lifting’ lay ahead before the Ministry for Primary Industries was confidently on top of the bacterial disease, and experts had advised that eradication could take between five and 10 years. . .

Potentialseen in double-muscled Beltx sheep breed – Sally Rae:

A Southland farming family has invested significantly in the Beltex sheep breed, believing it will be of ”major benefit” to the New Zealand sheep industry.

Brent and Ann-Maree Robinson, and son Michael, who farm at Glenham, near Wyndham, last year paid $12,000 for a ram lamb at the inaugural Beltex sale in Canterbury.

Last week, they bought the second top-priced ram lamb for $21,000 at this year’s sale at Mt Somers, a 2-tooth ram for $11,500 and some Beltex ewes to help build their breeding programme. . . 

Woman claims inaugural female shearing crown – Ellen O’Dwyer:

Emily Welch still remembers the time a fellow male competitor refused to shake her hand for out-shearing him.

That was in 2007, when Welch came second in the senior finals at the Golden Shears.

Now the Waikato shearer is the first to have her name etched on the women-only trophy after taking first place in the inaugural event at this year’s Golden Shears competition in Masterton. . . 

Community rallies to support Cambridge wetlands project :

A Cambridge school’s planting project not only assisted local farmers’ environmental efforts, but also attracted plants and sustenance from local businesses.

As part of an environmental initiative between DairyNZ’s education programme and the Student Volunteer Army, 26 rural schools were matched recently with 26 farmers to carry out riparian planting projects around the country.

Two farmers taking part were sharemilkers Stu and Leah Gillanders, who teamed up with a class from Cambridge Middle School to plant a wetland on Merv and Marion Hunt’s Karapiro farm. . .

Dannevirke TeenAg award winner’s passion for Hereford  cattle :

Dannevirke teenager Niamh Barnett knows first-hand how nerve-racking bidding at a livestock auction can be.

The 17-year-old bought some Hereford cows at the Woodlynd Polled Herefords dispersal sale in Gisborne in February 2018.

“I went with a price I was prepared to pay for each animal. I just hoped I didn’t get outbid,” she laughed. . . 


Rural round-up

March 6, 2019

Miles Hurrell permanently appointed Fonterra chief executive officer:

Fonterra Co-operative Group (FCG) has announced the permanent appointment of Miles Hurrell as its Chief Executive Officer (CEO), with immediate effect.

Mr Hurrell had been the Co-operative’s interim CEO since August last year.

Fonterra Chairman, John Monaghan says the Co-operative’s Board has been impressed by Mr Hurrell’s leadership and commercial skills as it continued to breathe fresh air into the Co-operative. . . 

Fonterra caught in death valley :

The sale of Tip Top is crucial to Fonterra’s aim of reducing its debt by $800 million before the end of this financial year, dairy industry commentator Peter Fraser believes.

Fast-moving consumer goods companies can command some very high multiples of earnings when being traded.

Fraser is an economist who advised the Ministry of Agriculture during Fonterra’s restructuring attempt a decade ago and has commented on the dairy industry since.  . . 

M. Bovisfoundonthreefarms – Sally Rae:

Bulk milk testing from all dairy farms has confirmed Mycoplasma bovis infection on three farms, the Ministry for Primary Industries’ latest stakeholder update says. All three properties had previously known links to the bacterial cattle disease.

Another 51 farms would be further investigated as part of routine surveillance while testing was yet to be completed from about 50 farms that calved later in the season.

Testing would begin shortly after calving because the bacteria was more likely to be shed during times of stress, such as after calving and the start of lactation, the update said. . . 

Alex woolhandler to represent NZ at champs – Sally Rae:

It’s bonjour France for Alexandra-based woolhandler Pagan Karauria. Karauria (30) will represent New Zealand at the world championships in Le Dorat in July, after gaining selection at the Golden Shears in Masterton on Saturday night.

Her success was even more remarkable given she suffered life-threatening injuries in a vehicle crash in Central Otago 10 and a-half years ago and has battled with the lasting effects since. . . 

Indoor lambing unit is in enviro contest – Joanna Grigg:

Richard Dawkins of The Pyramid has entered his family sheep and cattle business in the 2019 Cawthron Marlborough Environmental Awards and is up against forestry, marine, wine industry, landscape/habitat, community innovation and business innovation entries for the supreme title.

The winners will be named on March 22.

The Pyramid is in contention for the Federated Farmers Award for sheep and beef entries.  . . 

Farm loan delinquencies highest in 9 years as prices slump – Roxana Hegeman:

The nation’s farmers are struggling to pay back loans after years of low crop prices and a backlash from foreign buyers over President Donald Trump’s tariffs, with a key government program showing the highest default rate in at least nine years.

Many agricultural loans come due around Jan. 1, in part to give producers enough time to sell crops and livestock and to give them more flexibility in timing interest payments for tax filing purposes.

“It is beginning to become a serious situation nationwide at least in the grain crops — those that produce corn, soybeans, wheat,” said Allen Featherstone, head of the Department of Agricultural Economics at Kansas State University. . . 

 


Rural round-up

October 19, 2018

Fonterra CEO Miles Hurrell responds to claims co-op is a failed experiment:

This week, the Herald published an article by industry observer Tony Baldwin, which argued in some depth that Fonterra has been a failed experiment. What follows is a response from Fonterra CEO Miles Hurrell to that article.

I took the job of CEO of Fonterra because I believe in the Co-op’s potential and the positive difference it makes to New Zealand and consumers around the world.

It’s clear the challenge is big and we don’t always get everything right. I’ve been open about that with our farmers, unit holders, employees and the New Zealand public.

Now our focus has shifted to rolling up our sleeves and getting on with the job. We are well underway with our business review, which will deliver a balanced portfolio of high-performing investments, aligned to strategy and delivering returns across the short, medium and longer term. . .

Hands-on hard yards training – Hamish MacLean:

Colderidge Downs, in the Rakaia Gorge, looks like paradise, but the Coleridge Down Training Farm is home to hands-on hard-yards-style training for youth with a passion for agriculture and the outdoors.

Covering extensive hill country to intensive irrigated pastoral land, the group of central Canterbury farms cover about 10,000ha, run 42,000 stock units, and take on three cadets a year to ultimately gain level 3 and 4 qualifications through primary ITO in a two-year course.

Lachie Mee (18) finished at Waitaki Boys’ High School as a year 12 pupil last year and started at Coleridge Downs in January along with two other first-year cadets.
And when he started, he quickly learned he had entered the workforce. . . 

 

Pāmu Deer Milk Wins Novel Food Award at NZ Food Awards:

Pāmu is excited to announce its success at the prestigious Massey University New Zealand Food Awards, taking home the Novel Food or Beverage Award for its groundbreaking deer milk product.

The announcement was made at the NZ Food Awards Gala Dinner last night, an event which highlights the best New Zealand has to offer in the food and beverage industry.

“The Food Awards are all about rewarding innovation, which makes this acknowledgement very meaningful to us,” said Pāmu Chief Executive, Steve Carden. “We spent over three years testing and trialing deer milk and have been incredibly pleased with the reception it has received amongst the restaurant industry. We knew it had broad appeal for desserts but have been really inspired by the range of savory applications we’ve seen chefs across the country develop. Some chefs have even created deer-milk cocktails.” . . 

Marks & Spencer weave NZ’s troubled wool into new line – Eric Frykberg:

New Zealand’s troubled coarse wool industry could benefit from a new line in sustainable clothing at British retail giant Marks & Spencer.

Six lines of men’s blazers have gone on sale at stores throughout Britain, made with New Zealand product.

Coarse wool has been struggling to earn its keep for years, with greater volumes having to be put onto the market in an often unsuccessful attempt to make up for falling prices.

Only fine fibre from breeds such as merino have helped the wool sector to prosper overall. . . 

‘Have your Say’ campaign launched for Rural NZ:

National Leader Simon Bridges has today launched the ‘Have Your Say’ listening campaign for Rural New Zealand as the next step in National’s 2020 election policy development process.

“We know farmers and growers contribute $42 billion a year in exports that sees 350,000 people employed in the sector, and New Zealand’s success depends on it. This success is underpinned by sustainable business practices that continue to enhance the environment for our children.

“We want to make sure rural communities can access top-quality public services and infrastructure like broadband, rural policing, education and health services. . .

Big cheese competition – Robyn Bristow:

Amateur cheesemakers will pit their skills against one another in the third annual Amateur Cheesemakers Competition at the Oxford Farmers Market on Sunday.

Those with a passion for cheesemaking must have their cheeses entered by 9am to be in with a chance of picking up a $50 prize. A $5 Farmers’ Market voucher will be given to everyone who enters.

Anyone wanting to be part of the taster/judging panel can register for $2, giving them the chance to taste all the entries and pick the three cheeses that tempt their tastebuds the most. . . 


Fonterra drops forecast payout

October 10, 2018

Fonterra has dropped its forecast farmgate milk payout for the current season:

Fonterra Co-operative Group Limited today revised its 2018/19 forecast Farmgate Milk Price from $6.75 per kgMS to a range of $6.25-$6.50 per kgMS and increased its forecast New Zealand milk collection volumes by 1.3 per cent to 1,550 million kgMS.

While no-one will be celebrating this, it’s not unexpected and it’s still not a bad price.

Although it’s very early in the season and it could well change again.

Fonterra Chief Executive, Miles Hurrell, says the change in the forecast Farmgate Milk Price was due to a stronger global milk supply relative to demand at this time.

“I know how hard it is for farmers when the forecast Farmgate Milk Price drops, but it’s important they have the most up to date picture so they can make the best decisions for their farming businesses.

“We are still seeing strong production coming from Europe, US and Argentina. While the hot weather in Europe has slowed down the region’s production growth, it is still tracking ahead of last year. US milk production is up slightly and Argentina’s is up 6.8%.

“Here in New Zealand, the season has got off to a positive start, mainly thanks to good weather and early calving in the South Island. As a result, we have increased our forecast milk collections for the year to 1,550 million kgMS – up from 1,525 million kgMS.”

Mr Hurrell says that global demand is simply not matching current increases in supply.

“At recent Global Dairy Trade (GDT) events, prices for all products that make up the milk price have fallen. Demand for WMP, in particular, continues to grow in China, and it remains strong across South East Asia, but it simply isn’t matching current levels of supply.”

Talking about the new move to provide a range for the forecast Farmgate Milk Price, Mr Hurrell says it was part of the Co-op’s intention to provide the best possible signals.

“We operate in a hugely volatile global market place, so it is very difficult to pinpoint an exact forecast Farmgate Milk Price this early in the season. For example, weather conditions can change suddenly and this can have a significant impact on the global milk supply.

“As a result, we have chosen to give a range of $6.25-$6.50 per kgMS and be clear that the Advance Rate is based on $6.25 per kgMS and the final price could be outside this range as we are still early in the season and up against considerable volatility. We therefore recommend farmers budget with ongoing caution.”

The timing of today’s update is driven by available market information and is not a DIRA requirement. Fonterra is required to give a forecast for DIRA purposes by 15 December 2018.

Supply and demand – the former is higher than the latter which depresses the price.

It’s as simple as that.

 


Rural round-up

October 2, 2018

Fonterra’s China farms are a target for asset sales – Keith Woodford:

This is the first of a two-part series putting Fonterra’s China Farms under scrutiny. In this first part, the focus is on the origins of how Fonterra managed to entrap itself in its loss-making China Farms project.

Fonterra’s new leadership team of Chair John Monaghan, CEO Miles Hurrell and CFO Marc Rivers has made it clear in recent farmer meetings that debt reduction is a priority.  All options are supposedly on the table. However, the only way to achieve rapid debt reduction is by selling non-strategic assets. In that context, Fonterra’s China Farms must surely be lined up in the cross wires.

Fonterra’s China Farms have been loss-making for at least four years. Accumulated losses over that period, using market prices rather than internal transfer prices, total NZD $179 million EBIT.  These losses are before any contribution to Fonterra’s unallocated overheads of nearly $500 million per annum or paying interest on the borrowed capital. More detail on that in Part 2 of this series. . .

Planting a billion trees – Primary Land Users Group:

How does that relate to the Waikato Region under PC1?

The Government has set a goal to plant one billion trees over 10 years (between 2018 and 2027).

Why plant 1 billion trees? The short answer is because trees absorb carbon dioxide (CO2) from the atmosphere and turn it into wood, which holds carbon for as much as hundreds of years. Trees absorb CO2, protect the soil, improve water quality and create wildlife habitat. The long answer is because New Zealand has committed to reduce greenhouse gas levels which contribute to climate change. It has three reduction targets – for 2020, 2030 and 2050.

Urbanitess keen for a career in dairy :

One in five of all people wanting to take up a dairy apprenticeship is coming from New Zealand’s biggest city, and Primary ITO chief executive Linda Sissons says many more will be needed where they came from. Primary ITO (industry training organisation) and Federated Farmers are celebrating the first year of the joint Federated Farmers Apprenticeship Dairy. . .

Have your say on the dairy herd management scheme:

The Ministry for Primary Industries (MPI) wants to hear from the dairy industry and people with an interest in how the dairy herd improvement regulatory regime can help to ensure that New Zealand’s dairy industry remains world leading.

The dairy herd improvement regulatory regime has not been comprehensively reviewed since it was established in 2001, says Emma Taylor, MPI’s Director of Agriculture, Marine & Plant Policy. “It’s important the dairy herd improvement regulatory regime reflects the changing needs of the dairy industry. It’s timely to look at how the regulatory settings can better support industry both now and into the future. . .

Consuming milk at breakfast lowers blood glucose throughout the day :

A change in breakfast routine may provide benefits for the management of type 2 diabetes, according to a new study published in the Journal of Dairy Science. H. Douglas Goff, PhD, and the team of scientists from the Human Nutraceutical Research Unit at the University of Guelph, in collaboration with the University of Toronto, examined the effects of consuming high-protein milk at breakfast on blood glucose levels and satiety after breakfast and after a second meal. Milk consumed with breakfast cereal reduced postprandial blood glucose concentration compared with water, and high dairy protein concentration reduced postprandial blood glucose concentration compared with normal dairy protein concentration. The high-protein treatment also reduced appetite after the second meal compared with the low-protein equivalent.

“Metabolic diseases are on the rise globally, with type 2 diabetes and obesity as leading concerns in human health,” Dr. Goff and team said. “Thus, there is impetus to develop dietary strategies for the risk reduction and management of obesity and diabetes to empower consumers to improve their personal health.” . .

Capacity crowd expected at inaugural ‘Beyond Bovis’ seminar:

 Hundreds of farmers and rural professionals are expected to attend the inaugural ‘Beyond Bovis’ seminar in Hamilton next month Held in conjunction with the Waikato A&P Show the event is, according to the Director of Showing Waikato, Doug Lineham, the first of its kind in New Zealand, its goal being to rebuild and strengthen the New Zealand cattle industry in the wake of Mycoplasma Bovis (Mb).

The impact of (Mb) has extended beyond the breeding and animal containment strategies of individual farms to a widespread impact on the movement of all cattle,” Doug Lineham said. . .

 

Good and bad news in Fonterra’s annual report

September 13, 2018

Fonterra’s annual report has both good and bad news:

The good – last season’s payout dropped a cent but is still the third highest the company has achieved.

The bad – a net loss after tax of $196 million.

Federated Farmers Dairy Chairperson Chris Lewis says the company must do better.

“That’s the first full-year loss in their 18-year history. From a $745 million profit last financial year to a $200 million loss – that’s a big drop and they simply must do better. But I’m confident they’ll turn things around.”

Chris says farmers and shareholders will be looking for the new chief executive and chairperson to hit the ground running.

“I hope those two have a new broom for the shop floor. Good communication will be key.” . . .

Highlights:

  • Total Cash Payout for 2017/18 season: $6.79
    • Farmgate Milk Price $6.69 per kgMS
    • Dividend of 10 cents per share
  • New Zealand milk collections: 1,505 million kgMS, down 1%
  • Sales volumes: 22.2 billion Liquid Milk Equivalents (LME), down 3%
  • Normalised sales revenue: $20.4 billion, up 6%
  • Net loss after tax: $196 million
  • Normalised EBIT: $902 million, down 22% 
  • Normalised gross margin: 15.4%, down from 16.9%
  • Return on capital: 6.3%, down from 8.3%
  • Normalised earnings per share: 24 cents
  • Gearing ratio: 48.4%, up from 44.3%
  • FY19 forecast Farmgate Milk Price: $6.75 per kgMS
  • FY19 forecast earnings per share range: 25-35 cents 

It might be easier for a new chair and new, albeit acting, CEO to make the necessary changes to improve performance than it would had the board and management stayed the same.

Director elections are underway and could bring in some fresh talent that will help the process.

The media release continues:

Fonterra CEO Miles Hurrell says the Co-operative’s business performance must improve.

“There’s no two ways about it, these results don’t meet the standards we need to live up to. In FY18, we did not meet the promises we made to farmers and unitholders,” says Mr Hurrell.

“At our interim results, we expected our performance to be weighted to the second half of the year. We needed to deliver an outstanding third and fourth quarter, after an extremely strong second quarter for sales and earnings – but that didn’t happen.”

Mr Hurrell says that in addition to the previously reported $232 million payment to Danone relating to the arbitration, and $439 million write down on Fonterra’s Beingmate investment, there were four main reasons for the Co-operative’s poor earnings performance.

“First, forecasting is never easy but ours proved to be too optimistic. Second, butter prices didn’t come down as we anticipated, which impacted our sales volumes and margins. Third, the increase in the forecast Farmgate Milk Price late in the season, while good for farmers, put pressure on our margins. And fourth, operating expenses were up in some parts of the business and, while this was planned, it was also based on delivering higher earnings than we achieved.

“Even allowing for the payment to Danone and the write down on Beingmate, which collectively account for 3.2% of the increase in the gearing ratio, our performance is still down on last year.”

Mr Hurrell says when looking at the underlying performance of the business, which you can see in the normalised EBIT of $902 million, progress has been made in moving more milk into higher value products.

“While sales volumes were down 3% in FY18, a larger proportion of milk was sold through Consumer and Foodservice and Advanced Ingredients. In fact, 45% of our sales volumes were through these businesses and this is up from 42% in FY17, despite the higher input-price environment.

“Our Consumer and Foodservice business grew in all regions, except Oceania, with our strongest growth in Greater China. Of particular note, our Consumer business in China broke even this year, two years ahead of schedule. A big contributor to this success is the popularity of Anchor, which is now the number one brand of imported UHT milk in both online and offline sales in China.

“Despite this progress, performance across the Co-operative was below our expectations. Based on this, the Board has decided to limit our dividend to just the 10 cents paid in April and has confirmed the final Farmgate Milk Price for the 2017/18 season at $6.69 per kgMS,” added Mr Hurrell.

Plan for the future:

Mr Hurrell says these results are not just numbers – they’re the livelihoods of the Co-operative’s farmers and their families and the investment of unitholders.

“There are people depending on us – farmers, unitholders and employees who want to be part of a successful Co-operative. We are putting in place a clear plan for how we are going to lift Fonterra’s performance. It relies on us doing a number of things differently.

Fonterra’s Board and Management has outlined a plan based on three immediate actions:

  1. Taking stock of the business Fonterra will re-evaluate all investments, major assets and partnerships to ensure they still meet the Co-operative’s needs today. 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. This will start with a strategic review of the Co-operative’s investment in Beingmate.
  2. Getting the basics right – Fonterra has already begun taking action and fixing the businesses that are not performing. The level of financial discipline will be lifted throughout the Co-operative so debt can be reduced and return on capital improved.
  3. Ensuring more accurate forecasting – the business will be run on more realistic forecasts with a clear line of sight on potential opportunities as well as 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.

And the outlook for the coming season:

The forecast Farmgate Milk Price for the 2018/19 season is held at the $6.75 per kgMS Fonterra announced at the end of August and the Co-operative’s forecast earnings per share range for FY19 is 25-35 cents.

At $6.75 per kgMS the forecast Farmgate Milk Price for the 2018/19 season is the third consecutive year of strong milk prices. That’s good for farmers and for rural economies where farmers spend 46 cents of every dollar they earn.

Chairman John Monaghan says the Co-operative is being clear with farmers and unitholders on what it will take for the Co-operative to achieve the forecast earnings guidance.

“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 $950 million, and between $540 million and $590 million, respectively.”

“FY19 is about lifting the performance of our Co-operative.

“We are taking a close look at the Co-operative’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 of the Co-operative’s investments, major assets and partnerships against our strategy and target return on capital. You can expect to see strict discipline around cost control and respect for farmers’ and unitholders’ invested capital. That’s our priority.”

The results are here.

 


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