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


Good Luck to Fonterra

28 October 2004

Good Luck to Fonterra

Fonterra Co-operative Group's bold decision to mount a takeover bid for Australia's National Foods is a positive move which should succeed, said Kevin Wooding, Chairman of Dairy Farmers of New Zealand (DFNZ).

"The $A5.45 a share bid appears to be a very attractive price and I would be surprised if shareholders did not accept," Mr Wooding said.

"There are lots of good reasons for Fonterra to take over National Foods, Australia's largest publicly owned dairy company.

"National Foods has milk, dairy foods and specialty cheese markets, and has leading brands and market shares in all sectors.

"Buying National Foods will allow Fonterra to enter the national market for milk and cultured foods such as yoghurt. And the purchase will complement Fonterra's strength in the national cheese and spreads markets.

"The acquisition will also help build a stronger platform for growing export revenues to Asia and ultimately greater returns to New Zealand farmers," Mr Wooding said.

"The takeover decision is a commercial matter for Fonterra's board and management. DFNZ was not consulted before the bid, and neither should it. But Fonterra should be reminded that there are large amounts of money at stake, and at the end of the day there has to be a dollar in it for Fonterra's owners," Mr Wooding said.

Fonterra is owned by about 12,000 farmer suppliers, most of which are members of DFNZ, an industry group of Federated Farmers of New Zealand (Inc).


© Scoop Media

Business Headlines | Sci-Tech Headlines


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>>


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news