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8 Peace and politics on a Welsh farm Vol 22 No 38 | September 30, 2024
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Fonterra puts spring in farmers’ step MARKETS
Fonterra
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ONTERRA chair Peter McBride says the cooperative’s strong result for the 2024 financial year is the culmination of a lot of effort and hard work from its senior leadership team. It posted a $1.128 billion profit after tax, announced a 55 cent per share dividend and lifted its forecast milk price for the 20242025 season by 50 cents to a new midpoint range of $9/kg MS. Farmers have been doing it tough over the past couple of years and in some cases struggling to break even, McBride said.
There’s a couple of years’ catch-up that I think farmers are looking forward to. Miles Hurrell Fonterra “We’re really pleased to announce these results.” Fonterra chief executive Miles Hurrell said it has been a strong year that maintained the strong momentum seen in 2023. It also shows how much Fonterra has recovered from 2018, when it posted a $196 million loss.
Asked if he and the rest of the senior management team had reflected on the turnaround in performance, Hurrell said they are always looking forward to the next long-term target. “We’re now looking at 2027-2029 – that’s where our heads are at.” Looking back, he said, they were doing it tough back in 2018 and were forced by circumstances to simplify the business and get back to its core functions. “The purpose in what we stand for and the fact that we are a cooperative resonates. Our people in all parts of the world know we’re a co-operative and everything they do trickles back to rural NZ and a small town somewhere – that means something.” The 55 cents per share total dividend comprises of a 15 cent interim and 25 cent final dividend and 15 cent special dividend. Hurrell said the special dividend came from capital management efficiency and ongoing balance sheet strength. The final milk price for 20232024 was $7.83/kg MS, the fourth biggest in Fonterra’s history, but below those of the two previous seasons. The total payout for a fully shared-up farmers was $8.38/kg MS, close to the break-even level for farming operations. The 50 cent lift in the forecast for the current season included a Continued page 3
Giving prisoners keys to a better life Tongariro Prison has a successful on-farm programme, led by Luan Kloppers and Claire Goddard, that is helping to put men on a better path. Photo: Sarah Horrocks – AngusPRO
NEWS 11
Every day is a farm ‘open day’
S FOECT CU OR S
Gerald Piddock and Hugh Stringleman
Alastair and Ann Reeves welcome visitors to their Te Akau farm, reasoning that if they want a premium for their product, customers should see how it is made.
SHEEP & BEEF 18-22 New UAE trade deal unlocks Sheepmeat exporters risk tariff-free access for 98.5% being unable to cash in on of exports. new markets.
Phil Weir argues for refreshed strategy and new ways to co-operate.
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OPINION 15
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