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

 

Fonterra’s Australian Business is on Track

27 March 2017

Fonterra’s Australian Business is on Track And Investing for the Future


Fonterra’s Australian business is in good shape and performing well, says Fonterra Australia managing director René Dedoncker.

The Fonterra Co-operative Group Ltd announced its half-year results for its global operations, posting a NZD$418 million net profit after tax, up two per cent.

Fonterra Australia has contributed to this overall result which René says comes on the back of “all the hard work with our turnaround, making sure we’re focussing on areas where we have a clear advantage.

“We had to make tough decisions with our transformation. Our three businesses are now delivering good results for us, although there are headwinds ahead,” René says.

“In Ingredients, we’re achieving strong exports and are on track to become the largest exporter in Australia. In fact, it has the healthiest new product development pipeline in history. Our Darnum site is driving value, and is expected to produce more than 40,000 tonnes in this financial year.

“In the Consumer area, we’re the branded leader in cheese and spreads, and we’re developing new, innovative products to meet with the changing needs of our consumers.

“And in Foodservice, which is all food that is consumed out of the home such as in restaurants, cafes and fast food, we’re winning in our Italian Kitchen area with our specially formulated cheeses and cooking creams,” René says.

To meet the growth demand, Fonterra is investing in more capacity at its processing sites.

Its A$140 million Stanhope cheese plant in Victoria is on track, with the first cheese expected to roll off the line in mid-2017. It’ll produce 50 per cent more cheese for the domestic and export market.

“We’re also investing in our Wynyard site in Tasmania to put in more cheese capacity, and at Cobden, we’ve built a new cool room to accommodate the growing demand for butters.

“We’re also consolidating our warehouses and distribution centre into one state-of-the-art 12-storey distribution facility due to be ready in the middle of this year.”

“This improved performance has enabled us to lift our forecast milk price for the season to $5.20 per kgMS, from an opening price of $4.75 per kgMS.”

René acknowledges the challenging times experienced by dairy communities in Australia over the past year.

“It has been difficult for our farmers, their families, communities and the dairy industry as a whole. We’ve learned that we all need to stay closer to the signals from the global markets, as the milk price being paid just wasn’t reflective of the world market,” he says.

“We’re fully committed to working with and building good relationships with our farmers.”

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Reserve Bank: A least regrets approach to uncertainty

The Reserve Bank of New Zealand – Te Pūtea Matua makes decisions about official interest rates in a way that is robust in the face of uncertainty about the economy, Reserve Bank Assistant Governor Christian Hawkesby says in a speech published today*... More>>




Shocking Stuff: Lower Income Areas Paying More For Power

Analysis from Consumer NZ and Powerswitch has found major differences in electricity pricing depending on where you live, with those in lower income areas being hit the hardest... More>>



Science Media Centre: Understanding DDoS cyber attacks – Expert Reaction

Cyber attacks have hit several New Zealand organisations this month, disrupting their online services. The Distributed Denial of Service (DDoS) attacks were the same kind of cyber attack that affected the NZX around this time last year... More>>



Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>


Energy-from-waste: $350 Million Plant To Deliver Renewable Energy Considered

Investigations have begun into the viability of building an Energy-from-Waste plant that will safely convert 350,000 tonnes of waste, that would otherwise be dumped into South Island landfills annually, into renewable electricity... More>>

Olam: Confirms plans for commissioning of NZ dairy plant

OFI, a global leader in natural and sustainable food ingredient solutions, today confirmed plans to develop a new dairy processing facility at Tokoroa. It is now taking expressions of interest from potential farmer suppliers, employees, contractors, and general trade suppliers... More>>