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12 Women the lynchpin of community building Vol 21 No 10, March 20, 2023
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Fonterra trumpets a leap in profit Gerald Piddock
MARKETS
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Fonterra
ONTERRA’s after-tax profits are up 50% to $546 million and it will pay an interim dividend of 10 cents a share, it announced in its half-year results. Its total earnings per share were 33c and the forecast farmgate milk price range was $8.20-8.80/kg MS.
While milk powder prices have softened recently, impacting our forecast farmgate milk price range, protein prices have been high, and this is reflected in the lift in earnings we’re reporting today. Miles Hurrell Fonterra The co-op also upgraded its full-year forecast normalised earnings from 50-70c per share to 55-75c per share and announced a proposed tax-free capital return to farmer owners and unit holders of around 50c per share, subject to completion of the sale of its Chilean Soprole business. This earnings upgrade was based on better-than-expected margins in its ingredients business. Chief executive Miles Hurrell
said the results for the first half of the year show the co-op is performing well, with profit up 50%, against a backdrop of ongoing market volatility. “Our co-op’s scale and diversification across channels and markets has enabled us to navigate through disruption and make the most of favourable market conditions in a number of areas,” Hurrell said. “While milk powder prices have softened recently, impacting our forecast farmgate milk price range, protein prices have been high, and this is reflected in the lift in earnings we’re reporting today. “With less milk collected and whole milk powder prices down, we have produced less whole milk powder and more skim milk powder and cream products, and this has allowed a higher return. We have also made the most of higher margins in our protein portfolio, notably casein, caseinate and cheese products. “Our improved earnings and strong balance sheet have enabled us to pay an interim dividend of 10c per share, which is positive news for our farmer owners and unit holders. We also expect to be able to pay a strong fullyear dividend, in addition to our proposed capital return. “The outlook for high-quality sustainable New Zealand dairy remains positive. We have a clear strategy and are well-positioned to Continued page 3
Breeding them tough and tender in the wild west Thomas Condon of Flagstaff Herefords in the Mahitahi valley on the West Coast, where most of the stock work is done on horseback due to the rugged terrain.
PEOPLE 7
Norwood recognises rural sporting heroes Timbersports legend Jack Jordan takes top honours at the Norwood New Zealand Rural Sports Awards.
PEOPLE 16 NZ might be ‘further along than it thinks’ in terms of regenerative agriculture, global food exec says.
Researchers warn rural NZ to expect rise in waterborne pathogens and rats carrying bacteria after floods.
New Craigmore Sustainables chief operating officer appreciates New Zealand‘s ‘amazing competitive advantage’.
MARKETS 9
OPINION 19
PEOPLE 22
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