Latest news with #Fonterra
NZ Herald
3 days ago
- Business
- NZ Herald
Fonterra leads NZ sharemarket rise
Fonterra's share price rose today as investors anticipate a strong dividend is on the way. Photo / Supplied The New Zealand sharemarket rose slightly on a quiet day today, while Fonterra's share price rallied as investors look forward to a potentially higher dividend. The S&P/NZX 50 Index closed up 0.15% or 19.09 points, rising to 12,480.05, with 42.85 million shares changing hands to the value of $113.94 million.
NZ Herald
3 days ago
- Business
- NZ Herald
Dairy exports vital for NZ economy despite butter price concerns: Dr Jacqueline Rowarth
The same might well apply to your house. Downsizing parents have been known to assist their children into the family home while choosing somewhere less expensive for themselves. But if an outlander said they would give you twice the money of the valuation of your home, would you then accept it in the knowledge your children would ultimately be better off? There could be $1 million extra to spend on whatever you and they need, want or desire – a different house and a car, holiday or whatever. This is the philosophy behind Fonterra's approach to selling products from the dairy industry. A considerable amount of time and energy is spent marketing and positioning to achieve the best price possible for the product. The money keeps people in employment, funds repairs, maintenance and infrastructure development, and also funds research into new products. The bulk of the export income goes to the dairy farmers so that they, too, can employ people and create vibrant businesses, while also funding farm research through their levy contribution to industry good bodies such as DairyNZ and Beef + Lamb NZ. The income streams give everybody more choice, including the Government through tax-take investment. Every dairy dollar created by New Zealand cows and sold offshore generates over seven times the value in New Zealand and increases employment by over eight Full Time Equivalent positions. The $27 billion in export dollars is $5400 for every New Zealander, which multiplied by seven is almost $40,000. That is just for dairy. It is a lot of packs of butter, or cheese, and certainly litres of milk. The Government's concept of doubling the value of exports underpins its desire (and New Zealand's need) for improved health, education and infrastructure, as well as police, environment, and every other group important to New Zealand's functioning as a developed nation. Prices come down when supply exceeds demand, writes Dr Jacqueline Rowarth. If the export income increases, New Zealanders are better off. Despite this, there has been yet another outcry over the price of butter, with statements that it should be cheaper because New Zealand produces so much of it. Prices come down when supply exceeds demand, or if the product is being used as a loss leader by the seller. Vegetables and fruit tend to be cheaper in peak harvest season because supply is plentiful. The Food Price Index shows increases during winter and drought (and in the aftermath of cyclones). There is no glut in dairy products – they are in demand. Loss leaders are a different issue. They are an inducement to customers to enter a store to purchase the product at a price which might be below market cost. The goal is to stimulate sales of other, more profitable goods or services. The store accepts the 'loss' on the chosen product on the basis that it will make more money on sales overall, as customers are led into the shop… Inevitably, this leads to a discussion on supermarkets and whether the current structure allows sufficient choice for New Zealand customers. Supermarkets have borne the brunt of complaints about rising food prices (overlooking the impact of an increase in wages, power, rates and compliance costs, and the fact about 40% of food is imported). An article published last year showed each New Zealand supermarket was generating over 40% more revenue than US supermarkets. But each New Zealand supermarket was also serving more people. The article suggested having more competition between supermarket companies would reduce the revenue (implication - profit - which is not necessarily the case) for each supermarket. What was not apparent was that by serving more people, the New Zealand supermarkets were offering a service for less than that being charged in other countries. From the data, it appeared that in the UK and Australia, the revenue per person was 40% and 23%, respectively, higher than in New Zealand. When comparing prices here with those overseas, the role of GST, which adds 15% to the purchase price, is often overlooked. Further, unlike farmers elsewhere, New Zealand farmers do not receive Government support (taxpayer money). In many cases in the northern hemisphere, the support is what keeps the business solvent while ensuring domestic food security and a managed landscape. Discussing butter prices, Gareth Kiernan, chief forecaster at Infometrics, has explained that the alternatives are subsidies (which have to be paid for with tax) or regulation. There is a cost to both, resulting in inefficiencies. Next time you need butter (or cheese, or milk or any food), thank a farmer for being the bedrock of the economy. The current Government is grateful; we can be, too.
The Spinoff
4 days ago
- Business
- The Spinoff
Fonterra boss nabbed science and tech advisory role after texting PM
A Fonterra manager with no scientific background was announced as a member of the PM's science and technology advisory council in May. Documents released under the Official Information Act show she had sent Christopher Luxon a text message to tell him she was keen for the gig to 'support this national mission'. When the makeup of the prime minister's science, innovation and technology advisory council – designed to advise the government on where to direct scientific funding to ' drive economic growth' – was announced in May, some scientists expressed concern that half of the six members came from agriculture backgrounds and had no academic scientific experience. One of those was Komal Mistry-Mehta, chief innovation and brand officer at Fonterra, who, an Official Information Act request has now revealed, was appointed after she texted the prime minister to say she was keen to support the 'national mission'. The establishment of the science, innovation and technology advisory council was announced in January 2025, alongside some of the 'most significant science reforms in three decades '. Setting up the council was one of many recommendations made by the Science System Advisory Group, which was tasked with reviewing the science sector in May last year. The review recommended the group be made up of 'distinguished New Zealand scientists who are not institutional leaders, and individuals from the innovation sector and business'. In May 2025, the members of the advisory council were unveiled, including Sir Peter Gluckman, who led the science sector review, and John Roche, a dairy industry expert and former chief science adviser for the Ministry of Primary Industries, who was appointed deputy chair. Roche was also named as the prime minister's chief science adviser, ending a 310-day wait for a replacement for Dame Juliet Gerrard, who left the role in June 2024. Science, innovation and technology minister Shane Reti was appointed chair of the council, and $5.8m was set aside in the budget to fund its establishment and operation over the next five years. Half of the group's six members have backgrounds in dairy, though Roche is the only one with both agricultural and scientific expertise. Craig Piggott is the founder and head of Halter, an agri-tech company which develops smart-collars for cow and sheep herding, and before that he was working as a mechanical engineer for Rocket Lab, while Fonterra chief innovation and brand officer Komal Mistry-Mehta has held a number of high-level jobs at Fonterra, including heading the company's corporate venture branch, and has a background in law. Communications released to The Spinoff under the Official Information Act show that after the advisory council's establishment was announced on January 23, Mistry-Mehta texted Luxon on February 4 to let him know she was keen on securing a role within the council. 'I saw the recent Science & Technology changes and I think it's a positive step forward for New Zealand, and I'm a big believer in the laser focus on growth,' she wrote. 'As someone who is sharply focused on the commercialisation of R&D [research and development] globally, I wanted to reach out to let you know I would love to support this national mission on your council, or in whatever capacity that would be valuable.' Luxon replied eight days later, on the morning of February 12. 'That's awesome, Komal, thanks so much for stepping up,' he wrote back. Six minutes later, he forwarded Mistry-Mehta's text message to Reti, with the note: 'Komal leads Fonterra R&D. She won Young Exec of the Year a few years back.' A couple of months later, on May 8, the day after the council appointments were announced, Mistry-Mehta sent Luxon another text, telling him she was 'excited to get stuck into the council'. He replied 14 minutes later: 'You are going to be awesome, and thank you so much for stepping up for New Zealand.' Reuben Davidson, the Labour Party's science, innovation and technology spokesperson, told The Spinoff that there had been criticism from across the scientific community that the government's approach was 'all about the old economy'. 'A Fonterra appointment confirms that, with a healthy dose of cronyism,' he said. 'Is it about finding the best people for our boards, or just handing out roles to those people who can text the PM directly?' Davidson said. 'We shouldn't need to OIA text messages from the PM to find out how critical board appointments are being made.' The New Zealand Association of Scientists co-president Lucy Stewart told The Spinoff that prioritising the commercialisation of research and development (R&D) was like holding a marathon with short-distance runners, and having no one to complete the rest of the race. The association was 'incredibly concerned' that certain areas of science would be defunded because they were not seen as financially viable, she said, as was seen with humanities and social sciences being cut from Marsden Fund grant eligibility in December last year. The review that recommended the establishment of the advisory council emphasised the importance of science, innovation and technology beyond its role in economic growth. 'One of the current government's five key economic strategies is to exploit the research and innovation system,' it said. 'But the system has much broader roles to play in terms of national wellbeing, and in stewardship of the nation's physical, environmental, social and human assets.' New Zealand has historically been 'not very good' at commercialising R&D, Stewart said, but not for lack of care – 'there's lots of variants of science where it's not very straightforward [to make a profit]. If it was easy, everyone would be doing it.' She said her main concern over Mistry-Mehta's appointment was that if Fonterra was interested in working on science research, they should be investing in it themselves. 'The board is clearly weighted and being asked to do work that leans in a particular direction,' Stewart said. 'They're supposed to set the direction, and if they start deprioritising things – even if it gets changed in the next few years – it's going to be really damaging, and the impacts could be long term.'
Otago Daily Times
6 days ago
- Business
- Otago Daily Times
Cheese-makers extend winning streak
Fonterra's Clandeboye team has extended its run as the co-op's best cheese-makers for a key market in a five-year streak. The South Canterbury site was singled out for the Greater China Star Quality Cheese Award for the fifth time at Fonterra's annual Best Site Cup awards The award goes to the team producing the highest quality product and best customer service to the co-op's greater China consumer market. Clandeboye cheese and protein manager Conrad Harle said the team's long-standing commitment to quality and customer satisfaction had paid off again. ''The team takes great pride in delivering consistently high-quality cheese to our customers in greater China, ensuring every product meets the highest standards,'' he said in a statement. ''Our very customer-focused approach and strong relationships drive this success, and we are eager to keep raising the bar.' The awards in their 19th year generate friendly competition between co-op sites for the right to win a range of categories including sustainability, innovation and efficiency. Clandeboye has a strong history of manufacturing cheese. The site near Timaru began operating in 1904 and is one of Fonterra's largest cheese production facilities. More than 1000 workers process about 40% of the South Island's milk supply. At the peak of the season, more than 13 million litres of milk is collected daily to be turned into cheddar and mozzarella which is shipped to more than 50 countries including the largest market of China, United States, the Middle East and Africa, South East Asia and Australia. Cheddar is the mainstay product with Clandeboye's oldest manufacturing plant able to process up to 1.8 million litres of milk a day – equal to 200,000 1kg blocks. Cheese making combines pasteurisation, curd cutting, pressing, and ageing with modern automation to produce consistent products and advanced ageing processes. Mozzarella has become a major part of the site's production, with Clandeboye the largest producer of it in the Southern Hemisphere. The cheese ends up in more than half a billion pizzas every year around the globe. Last year Fonterra announced it was replacing polluting coal boilers at the site with a $64 million conversion to wood pellets. Two boilers are due to be completed in September, as part of its commitment to exit coal by 2037.
Otago Daily Times
6 days ago
- Business
- Otago Daily Times
South Canterbury team extends best cheese-maker award streak
Fonterra's Clandeboye team has extended its run as the co-op's best cheese-makers for a key market in a five-year streak. The South Canterbury site was singled out for the Greater China Star Quality Cheese Award for the fifth time at Fonterra's annual Best Site Cup awards The award goes to the team producing the highest quality product and best customer service to the co-op's greater China consumer market. Clandeboye cheese and protein manager Conrad Harle said the team's long-standing commitment to quality and customer satisfaction had paid off again. ''The team takes great pride in delivering consistently high-quality cheese to our customers in greater China, ensuring every product meets the highest standards,'' he said in a statement. ''Our very customer-focused approach and strong relationships drive this success, and we are eager to keep raising the bar.' The awards in their 19th year generate friendly competition between co-op sites for the right to win a range of categories including sustainability, innovation and efficiency. Clandeboye has a strong history of manufacturing cheese. The site near Timaru began operating in 1904 and is one of Fonterra's largest cheese production facilities. More than 1000 workers process about 40% of the South Island's milk supply. At the peak of the season, more than 13 million litres of milk is collected daily to be turned into cheddar and mozzarella which is shipped to more than 50 countries including the largest market of China, United States, the Middle East and Africa, South East Asia and Australia. Cheddar is the mainstay product with Clandeboye's oldest manufacturing plant able to process up to 1.8 million litres of milk a day – equal to 200,000 1kg blocks. Cheese making combines pasteurisation, curd cutting, pressing, and ageing with modern automation to produce consistent products and advanced ageing processes. Mozzarella has become a major part of the site's production, with Clandeboye the largest producer of it in the Southern Hemisphere. The cheese ends up in more than half a billion pizzas every year around the globe. Last year Fonterra announced it was replacing polluting coal boilers at the site with a $64 million conversion to wood pellets. Two boilers are due to be completed in September, as part of its commitment to exit coal by 2037.
