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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Fonterra reports annual loss, unveils new strategies to drive profitability

NEW ZEALAND – Fonterra reported an annual loss of NZD 605 million ($380.1 million) for the year ending July 2019 as the dairy cooperative struggled with write-downs across its business amounting to NZD787m (US$497.4m). Fonterra witnessed a tough financial year as reflected by loss widening  by 208%  from last year’s loss of NZD 196 million ($123.9m), which has seen the dairy company embark on reviewing its business in a bid to drive profitability. “These included us reflecting changing realities in asset values and future earnings, lifting our financial discipline, getting…

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Fonterra offloads 50% stake in DFE Pharma in debt management strategy

NEW ZEALAND – Fonterra has agreed to sell its 50 percent stake in DFE Pharma, a joint venture with Royal Friesland Campina, for NZD 633 million (US$401 million). The 50% stake in DFE Pharma will be bought by CVC Strategic Opportunities II, a fund managed by CVC Capital Partners – a leading private equity and investment advisory firm, managing approximately US$83 billion of assets in 73 companies worldwide. The proceeds from this sale, along with cash received from other asset sales across the year, including the significant contribution from Tip Top,…

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Fonterra’s chairman John Monaghan due to step down in 2020

NEW ZEALAND – Fonterra’s chairman John Monaghan is due to retire as a director in 2020 and will the work with the board of the dairy giant to plan succession. Monaghan was elected to the board in 2008 and became chairman last year, replacing John Wilson. Monaghan was due to retire by rotation at next year’s annual meeting, marking the end of his three-year term.  “Having seen through the introduction of our new strategy, operating model, and with our divestment and debt reduction efforts well progressed, I will be working…

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Fonterra delays annual results reporting date to finalize accounts after write-downs

NEW ZEALAND – Fonterra has advised a change of date for reporting its audited financial results for the financial year ending 31 July 2019. The dairy cooperative, which was previously expected to report the financial results on 12 September 2019, now says that it will release its results not later than 30 September 2019. Last month, Fonterra announced a number of asset write-downs and one-off accounting adjustments, noting that the numbers remained subject to Fonterra Board reviewing the full financial statements and audit adjustments. The farmer-owned cooperative announced it expected…

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Fonterra commits to reducing water use at six New Zealand facilities by 30%

NEW ZEALAND – The leading New Zealand dairy co-operative, Fonterra has raised its sustainability targets and pledging to reduce water use at six of its New Zealand new manufacturing sites by 30% by 2030. The six facilities that Fonterra targets include Maungatoroto, Lichfield, Brightwater, Darfield, Edendale and Clandeboye. The dairy giant estimates that more than 3.4 billion litres of water will be saved every year under new water targets, as part of moves to accelerate sustainability. All other sites across Fonterra’s entire manufacturing footprint will take steps to keep water…

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Fonterra to reduce stake in Chinese infant formula maker Beingmate

NEW ZEALAND – The New Zealand milk coorporative, Fonterra, has said that it will be reducing part of its 18.8% shareholding in Chinese infant formula manufacturer Beingmate. The company’s chief executive, Miles Hurrell, said the decision to reduce its stake in the poor perfoming entity forms part of a three-point plan to turn around the business. Fonterra booked a hefty write down on its Beingmate stake last year. Fonterra had acquired a stake in Shenzhen Stock Exchange listed Beingmate for about US$490.5 million (NZ$750 million) in 2015 seeking to tap…

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Fonterra targets 100% recyclable and reusable packaging by 2025

NEW ZEALAND – The New Zealand milk coorporative, Fonterra has pledged to make all its packaging recyclable, reusable or compostable by 2025 in a global commitment to reduce its carbon footprint. The company has also announced a target to cut the amount of solid waste going into landfills to zero by the same year. The sustainability initiatives are part of its efforts to do business with regard to people and the communities they operate in as well as safeguarding the planet. Fonterra has already put measures in place to reduce…

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First Milk acquires Fonterra’s stake in whey protein joint venture

UK – The New Zealand dairy corporative, Fonterra has agreed to offload its 51% stake in the Fast Forward joint venture with British dairy cooperative First Milk. First Milk which supplies milk, cheese and other dairy products to UK customers will become the sole owner of the whey protein concentrate manufacturing facilities based at the joint venture’s Lake District creamery in the UK. The two farmer co-operatives formed the joint venture in 2011, combining expertise to add value to the dairy protein streams at First Milk’s Lake District creamery in…

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Fonterra considers sale of stake in Brazilian joint venture, to close Australian facility

USA – New Zealand dairy giant, Fonterra has announced that it has reached an agreement with Nestle for potential sale of respective stakes in their Dairy Partners Americas (DPA) Brasil joint venture. Fonterra has also unveiled plans to close its Dennington site in Australia, a move it says is part of its new strategic direction- “prioritizing our New Zealand milk supply and simplifying our global portfolio”. Fonterra says the Australian Ingredients business continues to feel the impact of the drought and excess manufacturing capacity. “This is not a one-off for…

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