Fonterra, a global dairy company based in New Zealand, has reported its financial results and provided a forecast for the remainder of 2024. Dairynews.today publishes the company’s commentary without changes.
“Our new capital structure has been in place for a year and encouragingly, we’re seeing new Co-op farmers citing it as a reason for returning to the Co-op. Some are wanting to take advantage of the flexible shareholding options now available to them and this, coupled with the Co-op’s stability, means we have a strong pipeline of farmers wanting to join the Co-op.
“We have also been utilising our scale, optionality, and strong balance sheet to deliver benefits to farmers. This includes getting cash to farmers sooner through our revised Advance Rate guideline.
“Earlier this financial year, we returned $804 million to farmer shareholders and unit holders following the divestment of Soprole. We also completed the sale of our DPA Brazil JV with Nestlé to Lactalis.
“Since announcing our on-farm emissions target, we have been working with customers to commercialise our farmers’ sustainability credentials. This includes introducing to customers our regenerative agriculture position, which recognises our farmers’ pastural farming system.
“We’ve continued to decarbonise our New Zealand operations as we progress toward the Co-op’s scope 1 and 2 emissions reductions target, including commissioning our wood biomass boiler at Waitoa and announcing plans to electrify a 20-megawatt boiler at our Edendale site.
“We’ve also deployed a new technology within our manufacturing base which has unlocked 8,000 MT additional production capacity for our high-value UHT cream,” says Mr Hurrell.
“Looking out to the remainder of the year, while global inflationary pressures are easing, we are monitoring the potential for volatility as a result of geopolitical instability.
“Our partnership with Kotahi and diversification across markets means we’re well prepared for disruption in global supply chains or changes in demand from key importing regions.
“We’re pleased with our first half performance for FY24 and look forward to the second half as we continue to deliver for our farmer shareholders and unit holders,” says Mr Hurrell, CEO Fonterra.
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