Business not Minister’s business

June 14, 2018

NZ First MP Shane Jones has stomped with his clod hoppers where he has no business to be again:

Regional Development Minister Shane Jones has climbed into the leadership of dairy giant Fonterra, calling for chairman John Wilson to follow chief executive Theo Spierings out the door.

Jones said he told the company it should stop being political and instead focus on its business.

Says the Minister who uses personal attacks instead of polite discourse and ought to be focusing on politics not meddling in business.

They should focus less on interfering in politics and more on justifying the money they’ve lost overseas. I believe that they have become disconnected from the farming community.”

Jones said he had suggested to Agriculture Minister Damien O’Connor whether it was time to restructure the dairy co-op, and singled out Wilson for special mention.

Doesn’t he know that the Dairy Industry Restructuring Act (DIRA), under which Fonterra was created, is under review already?

The leadership of Fonterra, I believe, starting with the chairman, is full of its own importance and has become disconnected.”

He said there was an absolute absence of accountability for the “enormous amounts of dough” that the current chairman had presided over.

This sounds very like a minister full of his own importance presiding over a billion dollar slush fund with little accountability.

The CEO has gone, well that’s only one party of the double-Dutch we’ve had to put up with in Fonterra over the last nine years. I thoroughly believe this … that as the CEO leaves Fonterra, the chairman should in quick order catch the next cab out of town.

Double-Dutch? Is this a xenophobic reference to the retiring CEO Theo Spierings and past chair Sir Henry van der Heyden who stepped down nearly a decade ago?

“I’ve been bloody disappointed that Fonterra, in my view, the leadership has not accepted that there’s a new Government and there is a new narrative and I’ve had a gutsful of them believing they are bigger then what they really are.” . .

Believing they’re bigger than they are? That’s rich coming from the party with far more power – and voter money – than its voter support at the election entitle it to.

This sort of tirade does nothing to reassure  businesses which are already very wary of the policies and directions of the government.:

The time has come for the Prime Minister to step in and discipline her Regional Economic Development Minister who repeatedly seeks publicity by attacking business leaders, National’s Regional Economic Development spokesperson Paul Goldsmith said today.

“Business confidence in New Zealand is plummeting and the reasons for that are mounting.

“The Government’s low growth policies like higher taxes and stronger unions are causing businesses to hire fewer people and invest less in growth and it has them concerned about the future of New Zealand and who can blame them?

“Because on top of that you have a loudmouth Regional Economic Development Minister who’s putting his own ego and need for publicity ahead of the interests of New Zealand.

“Shane Jones’ attacks on Fonterra’s leadership are the latest burp from a man who is fast losing any respect he once had.

“He says Fonterra’s leadership is ‘full of their own importance’.  That sounds like a more apt description of himself.

“He even added he’s ‘worried about the absolute absence of accountability for the enormous amounts of dough that the current Fonterrra chairman has presided over’.

“This is startling hypocrisy from the same man who defended his own region getting the lion’s share of funding from his billion-dollar Provincial Growth Fund by stating ‘to the winner goes the booty’.

“Well it’s not his booty and it’s clear Shane Jones has no idea what accountability means.

“This Government has decided to spend $3 billion over the next three years on regional economic development, including roundabouts and church restorations. It’s critical the responsible is up to the job and focused on doing his job well.

“At the moment, all he seems good for is attacking business leaders whenever a few days have gone by without some of the media coverage for which he craves.

A friend who was at the KPMG breakfast at which Jones launched his tirade said it was entirely inappropriate, and a very poor reflection on the MP and the government.

Fonterra is a co-operative. The performance of the company and its chair are the business of its shareholders not an MP.

There is some dissatisfaction and there are concerns but this season’s  milk price is the third highest since the company was formed.

Shareholders could well be more concerned about the MP who has no business interfering in their business than the chair’s performance.

So Jones’s loose lips could well strengthen the position of Wilson who is up for re-election this year.


Rural round-up

December 19, 2017

The water is on, now for the hard bit – Hamish MacLean:

The $57million North Otago Irrigation Company expansion is complete — much to the relief of shareholders, with weather forecasters predicting a warm, dry summer. But irrigation is not so easy for farmers as simply turning on the water and watching the grass grow, Hamish MacLean finds out.

It could be a couple of years before North Otago’s newest irrigators get to grips with their new resource, but with a big dry spell predicted this summer, farmers are pleased to have a guaranteed water supply.

While the water on the North Otago Irrigation Company’s expansion began flowing in September, it was the end of November when all 85 off-takes of the expansion were commissioned, reaching the end of the line at All Day Bay. . . 

Rabobank New Zealand announces new CEO:

Rabobank New Zealand has announced it proposes to appoint Todd Charteris to the position of chief executive officer, subject to regulatory approval.

Rabobank New Zealand chairman Sir Henry van der Heyden said Mr Charteris “will bring significant experience with Rabobank on both sides of the Tasman to the role of CEO, as well as a deep knowledge of agribusiness and extensive relationships across the global Rabobank network”. . . 

Jonni keeps quality core at Stirling cheese – Sally Rae:

You could call Jonni de Malmanche a jack-of-all-trades, or more accurately, a Jane of them.

The South Otago woman is one of the long-serving staff members at Fonterra’s Stirling cheese factory, having worked there for the past 23 years.

“I still enjoy coming to work every day. I love the people, I love basically what Stirling stands for which is we make great cheese,” she said.

The factory, which opened in 1983, was built by the Otago Cheese Company, formed after the merger of three small South Otago dairy companies. In 2010, Fonterra spent $7.75 million upgrading the factory. . . 

 

Westland Milk Products soon to announce new products – Alexa Cook:

New Zealand’s second largest milk company is planning to step away from selling dairy products alone and expand into alternative protein and blended products.

Westland Milk Products has bounced back from a $14.5m loss in 2015/16 to break even this year.

Chief executive Toni Brendish says the co-operative worked hard over the past year to become more efficient.

The company’s purpose was now “nourishment made beautifully for generations” which she said gave it freedom to go beyond traditional dairy products. . . 

Dry summer weather prompts farmers to offload stock, AgriHQ – Tina Morrison:

(BusinessDesk) – Dry summer weather is denting grass growth, prompting farmers to reduce their livestock numbers, with the increased volumes of animals hitting the market starting to weigh on prices, according to AgriHQ’s Monthly Sheep & Beef report for December.

“The common factor pulling values down throughout NZ is the weather,” AgriHQ analyst Reece Brick said in his report. “It was a rapid transition from a particularly wet early spring into one of the driest late spring/early summers in recent years, catching many farmers off guard.”

For the sheep industry, below-average growth rates through November kept a lid on the number of lambs being sent to slaughter, keeping prices higher than anticipated. However numbers were now coming forward in significant volume and the long awaited fall in prices has finally begun, Brick said, noting that meat companies had dropped lamb slaughter prices by 15-20 cents per kilogram over the past fortnight, bringing the price to $7.10/kg. . .

Capital gains tax may be on the horizon with the new government:

With the new government reversing National’s tax cuts in April 2018, the government has now announced the items that are on the tax agenda, and have also signalled other potential changes. Tony Marshall, tax advisory partner for Crowe Horwath, predicts how the government’s new tax agenda may affect farmers.

As promised, the government is forming a Tax Working Group and has stated one of the focuses of the group will be looking into capital gains associated with property speculation. Capital gains tax has always been a contentious topic and sends nervous tension through the farming community. . . 

Monthly Dairy production report November 2017:

Key Statistics:

• NZ milk production for November 2017 was up 4.2% (+3.4% on a milksolids basis)
• NZ milk production for the season-to-date was up 1.8% (+1.8% on a milksolids basis)
• NZ milk production for the 12-months through November 2017 was up 1.3% (+1.9% on a milksolids basis)

Full report here.


Rural round-up

October 7, 2016

NZ meat industry pioneer honoured:

New Zealand meat industry pioneer Sir Graeme Harrison has won this year’s Rabobank Leadership Award in recognition of his extraordinary contribution to the food, beverage and agribusiness sectors.

Harrison, the founder and chairman of one of NZ’s largest exporters, Anzco Foods, was presented with the trans-Tasman award at the annual Rabobank Leadership Dinner in Sydney, Australia, last night.

It is the second year in a row a New Zealander has taken the honour with former Fonterra chair Sir Henry van der Heyden the recipient of the award last year.

Presenting the award, Rabobank Australia & New Zealand Group managing director Peter Knoblanche said Sir Graeme was a “true champion of agribusiness” who had made an enormous contribution not only as a NZ business leader, but also in the international meat industry trade”. . .

Farmers say river plan will kill businesses – Glenys Christian:

Many of the more than 150 farmers who gathered in Pukekohe last Monday believe the Waikato Regional Council’s Healthy Rivers Wai Ora plan will drive them out of business or severely limit what they can do on their properties.  

And Waikato University Professor of Agribusiness Jacqueline Rowarth told them if the plan came into force there would be a dearth of young people returning to the land.  

New Zealand enjoyed some of the best quality wild water in the world, backed up by a huge amount of environmental protection.  

She questioned comparisons made and said a lot of the research work used by the Healthy Rivers Wai Ora collaborative stakeholder group (CSG) was based on modelling without giving enough attention to the constraints and uncertainties involved, especially went it came to Overseer programme predictions. . . 

Farmers praise Northland plan – Hugh Stringleman:

Northland’s draft regional plan is pragmatic and headed in the right direction, Federated Farmers says.  

Federated Farmers Northland province found the overall thrust of Northland Regional Council policy-making was appropriate for dairy, sheep and beef cattle farmers.  

In particular, it responded to livestock exclusion rules, setback distance from waterways, farm wastewater storage, wetlands and catchment plans for improving water quality.  

It said Northland’s freshwater resources were in a reasonable state and over-allocation and nitrate loadings were not issues. . . 

A damn load of emotional effluent – Tim Gilbertson:

The Ruataniwha water storage scheme saga has gone far beyond soap opera territory: fantasy has long since replaced fact, the noisy quashing any sense.

Here are some examples. Serial anti-RWSS crusader Grenville Christie claims riparian planting stops only phosphate from entering the waterways (CHB Mail Sept 20). Incorrect. It stops virtually everything except nitrogen.

Filtering improves water quality, in some cases by up to 80% within a few months. Nitrogen enters the rivers via groundwater, so riparian planting is ineffective. But nitrogen will be severely limited by Plan Change 6, so Grenville can rest easy. . . 

Time to wake up and get safe! – Mark Daniel:

While quad fatalities keep fuelling a media frenzy, it’s time to look at the broader picture and try to understand what makes our farms such dangerous places.

Dangerous they are: statistics between 2013 and December 2015 show farmers suffered 63 deaths*; the next-highest sectors, transport and warehousing, had 17 and forestry 14 respectively during the same period.  

So the death rate on farms is around four times higher; why is that? If you’ve visited a quarry, warehouse or forest lately, you’ll know that before you get to the action you’ll be hit with rules, hazard identification, hi-vis vests, hard hats and steel-toe boots. Easy to do, you say, on a compact ring fenced site, but much harder to do in the backblocks of New Zealand. . . 

New challenge in milking goats –  Sudesh Kissun:

South Auckland farmer Hamish Noakes had no crystal ball four years ago when he pulled out of cow dairying and started milking goats.

The 40ha family-run farm at Karaka was “just too small and milking 160 cows just wasn’t working”.  

“I was always chasing my tail; I had a lot of leased blocks so I was always running around between leased blocks and running this farm,” Hamish told Rural News. . . 

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Rural round-up

June 7, 2016

Primary sector leader ‘humbled’ by award – Gerard Hutching:

Agricultural leader Chris Kelly said he was “humbled” by the Officer of the New Zealand Order of Merit (ONZM) bestowed on him in the Queen’s Birthday honours.

Kelly, who has been involved in the farming sector all his career, is best known as chief executive of Landcorp. During his 12-year stewardship of the SOE between 2001-13, Landcorp’s value mushroomed from $500 million to $1.6 billion.

“I’m proud to be part of a wonderful industry. The primary sector is not only very important for New Zealand but it’s also a great place to work.

“The most memorable component would have been my sojourn at Landcorp. I feel humbled to have been singled out because there are lots of other people who could have been,” Kelly said. . . 

Harnessing youthful energy at Mangahao – Kate Taylor:

The infamous Mangahao fog doesn’t dampen the farming enthusiasm of the Tararua Farmers of the Year. Kate Taylor paid a visit

Toddler Jack reaches for another piece of his toast as mum Ally puts a cake in the oven and dad Pete Apthorp has a well-earned coffee after sending away lambs in the early morning fog.

“The fog is at least easier to deal with than the dark last week before daylight saving ended. The people who like it lighter in the evenings have obviously never had to get stock away early for same-day kill,” says Pete with a chuckle.

Pete and Ally Apthorp, who are still in their 20s, farm on Mangahao-Pahiatua Rd, otherwise known as the Pahiatua Track to Palmerston North. They have been named the 2016 Rural Aerial Co-op Tararua Farmer of the Year and will host a field day on April 27.  . . 

NZ tech firm raises funds, wins award:

A local agri-technology company is on a high after raising $4.5 million for product development and research and being named the best AG-Tech start up in a Silicon Valley technology competition.

Engender Technologies has worked with two Centres of Research Excellence – the MacDiarmid Institute and the Dodds-Walls Centre – to develop technology to allow dairy farmers to manage the sex make-up of their herds.

It opens the way to a leading position in what’s estimated to be a $3.5 billion market. . . 

Nominations sought for 2016 trans-Tasman agribusiness leadership awards:

Nominations have opened for the 2016 Rabobank Leadership Awards, recognising the contribution of senior and emerging leaders in the success of New Zealand and Australia’s food and agribusiness industries.

The peer-nominated trans-Tasman awards – now in their eleventh year – include the flagship Rabobank Leadership Award, which was last year won by New Zealand business leader Sir Henry van der Heyden, the former chair of global dairy giant Fonterra.

The award is presented annually to an individual in a senior leadership role in the food, beverage and agribusiness sector who has created sustainable growth and prosperity at both corporate and industry level, while also demonstrating a wider commitment to society. . . 

Invasive ants eradicated from Tiritiri Matangi:

An ant considered one of the most destructive invasive species in the world has been successfully eradicated from Tiritiri Matangi Island in the Hauraki Gulf, Conservation Minister Maggie Barry says.

“Tiritiri Matangi is one of the few places in the world where Argentine ants have been successfully eradicated, the culmination of 16 years of hard work by DOC staff and volunteers,” Ms Barry says.

“They may be small, but these ants are one of the most damaging of all invasive pest species. The World Conservation Union lists them as one of the 100 worst eco-invaders on Earth.” . . 

Fungi workshop first of its kind:

Some of the world’s leading experts in fungal biology and the study of pest and weed invasions met recently at a workshop organised by researchers from the Bio-Protection Research Centre.

The aim of the  workshop, the first of its kind in New Zealand, was to stimulate discussion between scientists from different disciplines and develop a publication to guide future research in this area.

Sponsored by the New Phytologist Trust the event attracted more than 70 scientists for a day of public talks and a four day writing workshop for key participants.

“This was an incredible opportunity to bring together plant invasion ecologists, fungal ecologists and plant pathologists,” says Professor of Invasion Ecology Ian Dickie. . . 

Dairy: In a tough year, farmers can optimise tax through preferential livestock valuation:

With this years continued convergence of values between the Herd Scheme Value and National Standard Cost for dairy cattle, professional services firm Crowe Horwath says farmers are presented with an opportunity to review their livestock valuation methods and optimise their operations for tax efficiency.

That’s according to Tony Marshall, agri tax specialist who points out that the IRD’s 2016 Herd Scheme (HS) values have drawn to their closest with the National Standard Cost (NSC) in some time. “Valuation choice is important due to the tax treatment of livestock under each scheme,” he notes. “Once livestock are valued under HS, movements in value are non-taxable, whereas movements in value under the NSC method are always taxable, either as income or a deduction.” . . .

LIC bulls deliver top results for farmers:

LIC is celebrating the co-operative’s top bulls with the release of the industry’s latest Ranking of Active Sires (RAS) list – which ranks the top breeding bulls in New Zealand.

”These are our farmers’ bulls, developed by LIC on behalf of farmers for farmers,” LIC’s General Manager Biological Systems Geoff Corbett said.

The co-operative is pleased to see that 26 of the top 30 bulls of all breeds in the country are LIC’s. In other great results, the top 12 bulls across all breeds are LIC’s. . . 

CropLogic Secures New Licence for Global Growth:

Precision agriculture firm CropLogic has signed an exclusive agreement with the New Zealand Institute of Plant & Food Research to expand the marketing of its patented technology to corn, wheat, soybean and cotton farmers in the United States.

The technology — developed over 30 years out of Plant & Food Research, a New Zealand Crown Research Institute, and guided and shaped for international markets by IP investor Powerhouse Ventures — enables growers using the firm’s predictive modelling systems to pinpoint the best times to apply nutrients and to conserve precious water for maximum plant yields. . . 


Rural round-up

November 13, 2013

New Zealand’s Primary sector must not tolerate its weakest links

•        Industry must be prepared to remove those not prepared to meet baseline standards
•        Regulation needs to be balanced to avoid overburdening a strategic sector of the New Zealand economy

The global reputation of New Zealand’s primary sector lives or dies on every participant in the industry doing the right thing each and every day.  In a connected world it only takes one person to fail in fulfilling their duty to the environment, their animals or the community for significant pressure to come to bear on the whole sector’s license to operate.

The message that the industry can no longer tolerate weak links is a central theme in the latest volume of the KPMG Agribusiness Agenda 2013 which is released today. The fourth volume of the Agenda, titled “Balancing the needs of the environment, communities and businesses” discusses the issues associated with building a world class, sustainable primary sector in New Zealand. . .

Rollover protection on quads a lifesaver – researcher:

Associate Professor Charley Lamb, of Lincoln University’s Telford Division, has backed Whangarei coroner Brandt Shortland’s recommendation for more research to be done in New Zealand into the protection devices.

Mr Shortland’s recommendation follows the release this week of his findings into five quad-bike related deaths in which he says the vehicles are a farmer’s best friend, and also their worst enemy.

His recommendations include the compulsory wearing of helmets, more research on roll-bars and more training for riders.

On average, five people each year are killed in quad-bike accidents on farms and a further 850 are injured. . . .

Shock tactics and scars suggested for quad bike safety ads – Abby Brown:

Tweeting farmers say there needs to be an educational advertising campaign that uses shock tactics and even scars to warn of the hazards of using alcohol or drugs before using a quad bike.

Some farmers also said there needs to be more research on roll-over protection, speed limits need to be considered and most supported the call for the use of helmets.

Colin Grainger-Allen (@NZcows) tweeted that authorities like ACC need to use shock tactics to run educational advertising campaigns about the hazards of using quad bikes after drinking or drug use like they do with the anti-drink driving campaign. . .

Van der Heyden shares ideas with MIE – Alan Williams:

Former Fonterra chairman Sir Henry van der Heyden is playing down his role with red-meat lobby group Meat Industry Excellence (MIE).

“I’m sharing my ideas and experience from what I’ve learned in my time in the dairy industry with a large number of farmers and MIE is part of that,” van der Heyden said.

“Over the past two or three years many folk in the red-meat sectors have contacted me.”

It is understood van der Heyden has spoken at “invitation-only” MIE meetings with farmers over the past few months, ahead of director elections at the two biggest meat industry co-operatives, Silver Fern Farms and Alliance Group, at their annual meetings in December. . .

Leadership Reaffirmed for Grape and Wine Industry

New Zealand Winegrowers, the national organisation for the country’s 1,500 grape growers and winemakers, has announced the re-election of Steve Green as Chair and John Clarke as Deputy Chair for a second year.

Mr Green is proprietor of Carrick, a boutique Central Otago winery; he has been involved in the Central Otago grape and wine industry since 1994, has previously served as Chair of Central Otago Winegrowers and has been on the New Zealand Winegrowers Board since 2005.

Mr Clarke is a Gisborne grapegrower with over 30 years’ experience in the grape and wine industry. Mr Clarke, who is a former Gisborne Mayor, has previously served for ten years as the Chair of Gisborne Winegrowers and joined the New Zealand Winegrowers Board in 2006. . .

Wine & Tourism – a Winning Combination:

 2013 is turning out to be an outstanding year for Hawke’s Bay winery Sileni Estates. Off the back of recent local and international award success for their wines, Sileni Estates have recently been awarded the coveted Hawke’s Bay Cellar Door of the Year at the Hawke’s Bay A&P Wine Awards.

Cellar Door of the Year recipients in 2010 and 2012, Sileni Estates are surprised and delighted to receive the award again in 2013. Owner and CEO Graeme Avery comments, “We are thrilled that the Sileni Cellar Store has been awarded Cellar Door of the Year in three of the past four years. It is a credit to our dedicated and hardworking Cellar Store Team – Anne Boustead, Emily Lay and Simone Hartley; and to Sileni’s long term commitment to promote Hawke’s Bay and its wines.” . . .

Quality of wine shines through at Air New Zealand Wine Awards:

New Zealand wineries have again impressed judges at this year’s Air New Zealand Wine Awards with wines of outstanding quality making up the 111 gold medal winners.

Pinot Noir was the strongest performer, winning 22 gold medals, while 20 gold medals were awarded for Sauvignon Blanc and 17 for Chardonnay.

The aromatics classes, consisting of Gewürztraminer, Pinot Gris, Riesling, Viognier and Albariño, also shone in this year’s competition, bagging a total of 25 gold medals. The judges were impressed by the sparkling class, which was awarded 19 medals, including six gold.

Chair of Judges, Michael Brajkovich MW, said New Zealand winemakers are producing world-class wines across an exciting and diverse range of varieties. . .


2013 Agri person – van der Heyden

July 5, 2013

Former Fonterra chair Sir Henry van der Heyden is the 2013 Agri Personality.

The 2013 Allflex Agri Business Person is Kingi Smiler, Chairman of the Wairarapa Moana Incorporation.

The announcement was made the  Vodafone/Federated Farmers Cream of the Crop Awards, last night.

Feds chair Bruce Wills said:

“The first of Federated Farmers awards to be announced was our own Agri Personality of the Year. This is to recognise the one outstanding personality who, over 2012/13, has influenced New Zealand farming.

“When the Board met to decide the award, Sir Henry van der Heyden was easily the one person who truly stood out over the past 12-months. While he has left Fonterra his influence and mana has not diminished.

“The final award of the evening was the key Allflex Agri Business Person of the Year.

“For this award we assembled an independent panel to review the shortlist. That shortlist was made up of Landcorp’s Chris Kelly, Wairarapa Moana Incorporation/Miraka Chairman Kingi Smiler and Dr John Baker ONZM, of Baker No-Tillage.

“It was a tough decision but Kingi Smiler’s gifted business leadership of Wairarapa Moana Incorporation, a founding shareholder in Māori Dairy Company Miraka Limited, saw him emerge as first among equals.

“Kingi is simply put an outstanding business person, being a former partner in Ernst & Young and holding directorship across the agribusiness sphere. He is the chairman of Tairawhiti Land Development Trust and is currently a director of Mangatu Incorporation, the Wi Pere Trust and Wellington Rugby Union.

“If that is not enough he has also completed 19 Ironman competitions. . .


Thanks Henry

December 18, 2012

Sir Heny van der Heyden stepped down as chair of Fonterra at the company’s AGM yesterday.

In his final address as chair he said that decisions made by farmer shareholders over the last decade have laid a strong and durable foundation for future growth:

 Taking stock of the changes within the industry over the past 10 -15 years, Sir Henry reflected on the important decisions that had strengthened Fonterra’s global position and returns to farmers.

 “It’s been one huge year after another and every one of them has made us stronger.

 “Together we’ve turned a collection of co-ops into the world’s top dairy exporter.

 “Creating Fonterra was a massive leap of faith on two levels.  We put our faith in a single integrated model – and we put our faith in it succeeding in an entirely deregulated market.  I can say without a shadow of a doubt that we pulled it off,” he said.

 “Fonterra came out of the blocks with $11.8 billion in assets.  We have grown that by 28 per cent to $15 billion.  That’s an outstanding performance.

 “We have done what we set out to do – grow farmers’ wealth ¬– and that’s come through in the value of your land, your shares and your earnings on the farm.”

 Sir Henry said global demand for dairy was the strongest it had ever been and was growing.

 “We need to use all of our muscle to push ahead and stay ahead.  But we will do it our way.  History has shown we are not afraid to make the big calls and make big changes without trading what is really important.”

 Chief Executive Theo Spierings  said since Fonterra’s formation in 2001, the Board and farmer shareholders had made the tough decisions required to position the Co-operative for growth.

“Establishing a Fair Value Share, achieving a transparent Milk Price, and introducing a dividend policy were the first three hurdles.  This year, Trading Among Farmers has delivered permanent share capital and a stable capital base.

 “Looking ahead, our business strategy is to grow volumes, grow value, generate more cash and improve our return on capital. To deliver on this, our future priorities are to:

  • Shift more ingredients sales direct to customers and generate prices higher than Global Dairy Trade;
  • Grow consumer and foodservice volumes;
  • Align our costs and spending so we have the money to invest in areas that will generate growth; and
  • Maintain a balance between environmental, economic and social sustainability.

“We have to start thinking differently about cost – and have already started doing this with our focus on reducing costs by $60 million this financial year.”

 Building a durable co-operative for the future meant Fonterra had to align spending, to make sure resources were directed to the right priorities, said Mr Spierings.

Sir Henry said  that when he took the job on, he wanted to make a difference and leave the Co-operative in a better position at the end of his tenure.

He has done that and its not only shareholders who have benefited from that.

Fonterra also makes a very significant contribution to New Zealand’s economy.

Its milk in schools programme is beginning to make a valuable contribution to education and health.

New chair John Wilson and the other incumbent director Nicola Shadbolt were re-elected to the board. The other vacancy was filled by former Shareholders’ Council chair Blue Read.


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