Category Archives: Fonterra

Fonterra heads towards a new capital structure with scope for unintended consequences

Fonterra’s latest proposals to change its capital structure will be far reaching. If implemented, they will essentially undo the misleadingly named ‘Trading Among Farmers’ (TAF) system set up in 2012. I say ‘misleading’ because in reality that was a scheme … Continue reading

Posted in Agribusiness, Fonterra, Uncategorized | Leave a comment

It’s time for Fonterra to define the new path ahead

Fonterra has spent nearly three years stabilising its finances. The focus now has to be on finding the path ahead It is now approaching three years since Theo Spierings’ departure from Fonterra was announced. The focus ever since has been … Continue reading

Posted in Agribusiness, Dairy, Fonterra, Uncategorized | 16 Comments

Fonterra stabilises finances with back to basics model, selling assets and retaining profits

Fonterra has stabilised its finances with more asset sales forthcoming. It now operates a conservative model supported by its farmer members. But the model will not create the ‘national champion’ that the Labour Government has always hoped for Fonterra’s annual … Continue reading

Posted in Dairy, Fonterra | 4 Comments

Big win for Fonterra from latest DIRA amendments

New DIRA settings give Fonterra what it wanted but make life much more challenging for any new dairy processors. Fonterra will be feeling very pleased with the final outcomes from the much drawn-out 2018-2020 review of the Dairy Industry Restructuring … Continue reading

Posted in A1 and A2 milk, Dairy, Fonterra | 6 Comments

COVID-19 and New Zealand’s agriculltural trade

Despite any attempts to diversify away from China, exports to China will be increasingly important in coming months as much of the world descends into increasing turmoil With COVID-19 now dominating all of our lives, it was easy to decide … Continue reading

Posted in Agribusiness, China, COVID-19, Dairy, Fonterra, Meat Industry | 7 Comments

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

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

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