Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Fonterra On Track To Deliver Merger Business Case

Fonterra CEO Craig Norgate says the company is on track to deliver the Business Case supporting last year's dairy industry merger.

He told the American Chamber of Commerce in New Zealand today that Fonterra had an absolute obligation to deliver on the Business Case, which outlined cost savings, revenue enhancements and strategy gains worth over NZ$300 million by the third full year after the merger.

"Everything we do to deliver on the Business Case is being measured in fine detail and we have an obligation to transparently report on it. Right now, we continue to be on track and our challenge is to demonstrate to shareholders that we have delivered the $300 million into their pockets."

Mr Norgate said he was pleased with the company's operational performance during its integration process, saying it had not suffered from the customer-retention problems, operational problems or defections of key people that are typical in many mergers.

It had met the challenge of record milk production, record peak production through the spring, and the expansion of manufacturing capacity at Clandeboye, Stirling, Tirau and Hautapu.

"In the market, despite the downturn on prices, we are confident we are on track to deliver a record payout to our supplying shareholders." The current payout forecast is NZ$5.40 per kilogram of milk solids, eight percent up on last year.

Mr Norgate also committed himself and Fonterra to be advocates for a Closer Economic Relationship with the United States.

"There are very real benefits to the United States from an agreement with New Zealand," he said. "The key benefit is that we represent low-hanging fruit as they seek to achieve wider trade liberalisation goals in the interests of prosperity and security. With New Zealand - and with Australia - it has the opportunity to complete a model deal, one that would increase the momentum for further economic liberalisation in the Asia Pacific region."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news