Fonterra to roll out new payment for sustainable and high value milk

NEW ZEALAND – Fonterra, a New Zealand multinational dairy co-operative, has announced that it is introducing a Co-operative Difference Payment for farmers producing sustainable and high quality milk based on the Co-op’s on-farm sustainability and value targets. Effective from next season, from 1 June 2021, Fonterra said that it will be paying farmers an additional payment of up to 10 cents per kilogram of milk solids (kgMS) if the farm meets the Co-op’s on-farm sustainability and value targets. The dairy processor says that these are part of its strategy to…

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Fonterra reports major progress as half year profits climb to US$298.5m

NEW ZEALAND – New Zealand farmer-owned dairy co-operative, Fonterra lifted its half year net profit after tax to NZD501 million (US$298.5m), up from NZD72 million (US$42.2m), representing a 595.8% growth in reported profit as the company continues to reset its business. Fonterra reported a normalised net profit after tax of NZD293 million (US$171.68m), up from NZD72 million (US$42.2m) while the total group normalised Earnings Before Interest and Tax (EBIT) grew 87% to NZD584 million (US$342.2m). During the period, the company also managed to reduce its net debt to NZD5.8 billion…

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Fonterra Chairman John Monaghan to retire in November

NEW ZEALAND – Fonterra Co-operative Group’s Chairman, John Monaghan has confirmed that he will retire as a Director of the dairy Co-operative after serving as in the company’s board for more than a decade. Monaghan will retire at the company’s Annual Meeting this November, marking the end of his current 3-year term as Fonterra’s Chairman ends. Monaghan was elected to the board in 2008 and became chairman last year, replacing John Wilson. In a note to the Co-operative’s farmer-owners and unitholders, Mr Monaghan explained that his decision was the next…

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Fonterra selects HCL Technologies for IT infrastructure transformation

NEW ZEALAND – New Zealand dairy co-operative, Fonterra has partnered with global technology company, HCL Technologies to modernise and manage the entire technology infrastructure Fonterra employees around the world use every day. The multi-year partnership with HCL Technologies is expected to consolidate Fonterra’s technology suppliers and bring together the dairy co-operatives’ IT infrastructure services under one umbrella. According to HCL, the technology edge services provided by the company will enhance Fonterra’s employee experience, to navigate through their business operations. Piers Shore, Fonterra Chief Information Officer, says; “Fonterra is pleased to…

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Fonterra transitions into more sustainable energy at the Te Awamutu site

NEW ZEALAND – New Zealand’s leading dairy processor, Fonterra has announced that its Te Awamutu site, located in the Waikato region, North Island of the country will stop using coal starting next season. The farmer owned dairy co-operative will completely transition from coal into using pellet power at the site. Until now the site has been using a combination of fuels to process milk – including coal.  This follows a trial conducted by the company last year and is now ready to switch from using coal at the end of…

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Fonterra sells stake in joint venture DFE Pharma for US$361.8m

NEW ZEALAND – Fonterra has completed the sale of its 50% stake in the joint venture company it formed with Royal FrieslandCampina, DFE Pharma to CVC Strategic Opportunities II for NZD554 million (US$361.83m). The company said that the cash proceeds of NZD554 million, comprising of the original sale proceeds of NZD537 million and NZD17 million in settlement adjustments, will is be a strong boost in strengthening the dairy Co-op’s balance sheet. The deal was announced in September 2019 as part of a full portfolio review to re-evaluate investment, major asset…

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Fonterra is making good progress towards achieving new strategy, says CEO Miles Hurrell

NEW ZEALAND – In September this year, New Zealand dairy co-operative, Fonterra unveiled a new operating model and organization strategy introducing a new customer-led operating model in a bid to drive profitability. After nearly three months since company took the new direction, CEO Miles Hurrell says that the co-operative has made good progress moving to its new strategy, having have posted a strong first quarter. Fonterra strategy involves an increased focus on people while making a positive impact on society, working together to achieve a healthy environment for farming and…

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Fonterra releases annual sustainability report highlighting progress towards 2030 ambitions

NEW ZEALAND – Fonterra has published its 2019 sustainability report, highlighting the dairy co-operative’s major strides towards fostering a sustainable future in areas of energy, carbon emissions and health. In the report, the dairy processor said that it has made significant investments in co-firing biomass to reduce coal, lifting the number of New Zealand products with Health Star ratings and launching an emissions profile for every farm. While these and other gains are pleasing and have laid some good foundations for the future, Fonterra CEO Miles Hurrell says there is…

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Fonterra partners with By-Health to bolster research on nutritional solutions

CHINA – New Zealand dairy cooperative Fonterra has entered into a strategic research and development partnership with global vitamin and dietary supplements enterprise, By-Health. The companies will focus on developing nutritional solutions for the health and wellness market through research and new product development that will deliver health benefits to consumers in China and globally. The partnership will leverage on Fonterra’s innovation in functional dairy proteins, Milk Fat Globule Membrane (MFGM) and probiotics and By-Health’s involvement in vitamin and dietary supplements. Fonterra has already established a specialized Sports and Active…

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Fonterra appoints Fraser Whineray as new chief operating officer

NEW ZEALAND – Fonterra has appointed Fraser Whineray to its management team in the newly created role of Chief Operating Officer, starting in early 2020. Mr Whineray will join the dairy cooperative form the New Zealand -based electricity generation and retailing company Mercury NZ, where he currently serves as the Chief Executive. Mr Whineray has also held several senior leadership roles since joining the company in 2008. He led the rebrand of Mercury from Mighty River Power in 2016, led the development of the company’s first wind farm, New Zealand’s…

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