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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news