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

 


NZ And International Investment Welcomed by Farmers

MEDIA RELEASE



27 August 2014

New Zealand And International Investment Welcomed by Farmers

Fonterra Shareholders’ Council Chairman, Ian Brown said today’s announced investments in New Zealand’s milk pools and a global partnership with China’s Beingmate were bold moves that would be welcomed by the Co-operative’s Farmers.

Mr Brown: “There is a direct link between the $555 million investment in the Lichfield and Edendale sites and the $615 million investment in the partnership with Beingmate in that both align with the Fonterra strategy of increasing the volume and value of our milk.

“The investment in New Zealand operations is a real positive and will optimise the Milk Price we receive by enabling our Co-op greater flexibility in deciding which products our milk goes into and when.

“The added employment opportunities in the construction phase and, long term, within our factories will also prove to be a welcome cash injection for the local communities.”

Mr Brown said the partnership with Beingmate was an important step to increasing access to the high value Chinese nutritional powders market and, in doing so, generating greater profit and returns for Fonterra Farmers.

“China is our number one market and demand for our products continues to grow there.

“Having recently visited the China market it’s difficult to overstate the importance of having a local presence and with Beingmate’s established networks and relationships this joint venture will enable us to move further towards consumer products that add margin over the value of milk.

“Today’s announcements provide our Co-op the opportunity to extract maximum value from every drop of milk we produce through the best use of our global assets.”

Fonterra also announced it was holding its 2014/15 forecast Farmgate Milk Price at $6.00 per kg/MS and estimated dividend range of 20-25 cents per share.

Mr Brown said Farmers would be relieved with the announcement but stressed the importance of continued prudent financial planning particularly with the volatility in the market at present.

ENDS


ABOUT THE FONTERRA SHAREHOLDERS’ COUNCIL

The Fonterra Shareholders’ Council represents the interests of Fonterra Farmers to the Board of the Co-operative and plays an active role in monitoring and assessing the governance and performance of Fonterra.

There are 37 Councillors who are all Shareholders elected by their fellow Farmers in wards across New Zealand.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news