Category Archives: Dairy

Fonterra resolves Chilean dispute with buy-out

Fonterra’s announcement that it is purchasing the minority shareholding interests in Chilean dairy company Prolesur solves an acrimonious relationship between Fonterra and the Fundación Isabel Aninat. This may prove to be an early step in the rationalisation and eventual divestment … Continue reading

Posted in Agribusiness, Chile, Dairy, Fonterra, Uncategorized | 2 Comments

Mycoplasma bovis eradication assessed as still feasible but with major caveats

The Mycoplasma bovis Technical Advisory Group (TAG), in its latest report released today (30 October 2019), has made a judgement that eradication of the disease remains feasible. As such, the national eradication program will undoubtedly continue. However, within its report … Continue reading

Posted in Agribusiness, Dairy, Mycoplasma bovis | Leave a comment

Chilean Dairy and Fonterra

I wrote this article in Santiago Airport, waiting for a rescheduled flight to New Zealand. It had been a long night with flights cancelled because of the tragic Santiago riots, and thousands of stranded passengers sleeping on chairs and on … Continue reading

Posted in Agribusiness, Dairy, Fonterra | 4 Comments

Agricultural GDP leaves out more than it includes

Agricultural GDP catches well under one quarter of the agribusiness system. As such it fails to capture the importance of agribusiness to the economy. One of the problems facing New Zealand’s agriculture is a widespread urban perspective that agriculture is … Continue reading

Posted in Agribusiness, Dairy, Meat Industry | 4 Comments

Fonterra’s new strategy

Fonterra’s annual report contains no big surprises. The strategy is one of stepping back from consumer brands and global milk pools. This has been driven by necessity. As such, it is a move towards a little Fonterra and away from … Continue reading

Posted in Dairy, Fonterra | 2 Comments

Fonterra’s company culture lies at the heart of the matter

In my last article I wrote about Fonterra’s capital structure, how it operates, and how it is no longer fit for purpose. This article here explores aspects of how Fonterra got into its structural dilemma. The starting point is to … Continue reading

Posted in Dairy, Fonterra | 2 Comments

Fonterra’s capital structure is no longer fit for purpose

Fonterra’s delay in announcing its results, driven by Fonterra’s need for discussions with its auditors about appropriate asset values, provides an opportunity to reflect on Fonterra’s capital structure and whether it is still fit for purpose. The simple answer is … Continue reading

Posted in Dairy, Fonterra | 2 Comments