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

 


Fonterra news ‘as far from milk & disaster as the moon’

Fonterra news ‘as far from milk & disaster as the moon’

Farmers will be breathing a huge sigh of relief with Fonterra’s benchmark forecast payout for 2014/15 being held at $6 per kilogram of Milk Solids (kg/MS), while other aspects of the announcement are a great boost of confidence in New Zealand agribusiness.

“This is as far from milk and disaster as the moon is,” says Andrew Hoggard, Federated Farmers Dairy chairperson.

“While this season remains a super trim one last season was definitely a silver top one.

“The milk price hold is good news given there’s been widespread speculation about it sliding below the $6 mark, however, we’re not out of the woods yet. We still advise farmers to err on the side of caution by budgeting in the mid-$5 payout range.

“I tell you what though, news that Fonterra is putting $555 million more into Edendale and Lichfield, on top of what’s going into Pahiatua and elsewhere, represents a huge vote of confidence in the dairy industry and the provinces.

“It’s going to be a great shot in the arm for jobs building this new capacity, let alone the 75 full-time jobs that will be generated plus many more downstream jobs that will flow from it.

“We’re more than pleased to see this investment ahead of this season’s peak-milk, given last year’s buttermilk lakes represented a lost opportunity. Fonterra has recognised the need for more capacity with investments worth over half a billion dollars.

“It also shows how wrong it is to think that milk is a low value export.

“That’s shown by Fonterra stepping up in China with a joint venture taking up to 20 percent in Beingmate; a leading Chinese producer of infant formula.

“Let’s say it has been a long time between drinks, but it is right to get back on the horse.

“I feel Fonterra supplier-shareholders will back this investment of up to $615 million. It shows just how international Fonterra’s global reach is, something many Kiwis don’t understand.

“Look at the joint venture with Beingmate. It will take what we produce in New Zealand, along with paediatric products made at Darnum in Australia and whey specialty ingredients manufactured at Fonterra’s plant in the Netherlands.

“But this is just the start since New Zealand’s core competitive advantage and future lies in agribusiness,” Mr Hoggard concluded.

ends

© 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