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   Keith Woodford Posts   

Keith Woodford is an independent consultant, based in New Zealand, who works internationally on agri-food systems and rural development projects. He holds honorary positions as Professor of Agri-Food Systems at Lincoln University, New Zealand, and as Senior Research Fellow at the Contemporary China Research Centre at Victoria University, Wellington.

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Directors Craig McMillan and Greg Terill have collectively over 40 years’ experience in the lining industry, and have been involved in installations throughout New Zealand, Australia and the Pacific region.

New Zealand Grazing is focused on reliably growing dairy heifers to the highest standard, our experience has been gained working alongside thousands of farmers around the country. We were selected by Fonterra and Silver Fern Farms to grow their young livestock.

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31 October 2019

Media Release by the Dairy Companies Association of New Zealand (DCANZ)

Proud to be part of Biosecurity Business Pledge

The Dairy Companies Association of New Zealand (DCANZ) has joined today with Biosecurity Minister Damien O’Connor, and 50 other businesses and associations from across New Zealand, in launching a new Biosecurity Business Pledge. 

The Pledge is a commitment from companies to being proactive about biosecurity within their operations and supply chains, to help protect New Zealand’s unique natural environment, the New Zealand way of life, and our economy for future generations.

All 12 DCANZ member companies – Fonterra, Open Country Dairy, Tatua, Miraka, Dairy Goat Co-operative, Synlait, Westland, Oceania, Goodman Fielder, Danone, Yashili and Waui - have individually signed onto the Pledge. 

“Our commitment to the pledge reflects the importance we place on biosecurity” says DCANZ Chairman Malcolm Bailey. 

“New Zealand’s freedom from many pests and diseases underpins our ability to export dairy products to more than 100 different markets globally, and safeguards 38,000 dairy sector jobs.”

In committing to the Pledge dairy companies recognise that biosecurity is a crucial step in maintaining the biodiversity that makes New Zealand a special place to live and work.

“Everyone has a role to play in good biosecurity and we take this responsibility seriously.  This includes seeking good biosecurity outcomes for ourselves, for other businesses, and for our communities, when importing products within our supply chains and travelling.”  

A focus for dairy companies in signing up to the pledge will be increased engagement with MPI to better understand the biosecurity trends occurring within cross-border supply chains.  For example, potential for ‘hitchhiker pests’ to enter New Zealand with the shipping containers dairy companies import.  This engagement will support a proactive approach as risk profiles evolve.

The Pledge will also create a pre-competitive network enabling participating companies to share and learn from each other’s approaches to biosecurity risk management.  Fonterra, for example, will be making available its biosecurity guidelines for travel on the Biosecurity Business Pledge webpage.  It is hoped this makes it easier for other companies to integrate biosecurity into their travel. 

The benefits and risks associated with biosecurity are shared by all businesses.  The network established by this Pledge will help all participating businesses to support better biosecurity outcomes.

“DCANZ is proud to be part of the inaugural signatories to the Pledge, and we encourage more companies to join us.” says Bailey

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22 October 2019

 

FONTERRA INCREASES 2019/2020 FORECAST FARMGATE MILK PRICE

 

Fonterra Co-operative Group Limited today increased its 2019/2020 forecast Farmgate Milk Price range from $6.25 - $7.25 per kgMS to $6.55 - $7.55 per kgMS.

 

The Advance Rate Fonterra pays its farmer owners will be set off the mid-point, $7.05 per kgMS, of the revised range.

 

Fonterra Chairman John Monaghan says the Co-op had been achieving good prices for its milk so far this season.

 

“Demand for whole milk powder (WMP) has been firm, and for the full season we’re expecting it to be above last year. Global WMP production is down year to date and expected to continue to decrease for the remainder of 2019.

 

“We are also continuing to sell our skim milk powder at higher prices than EU and US dairy companies in Global Dairy Trade (GDT) Events.”

 

Fonterra CEO Miles Hurrell says there are positive signals for milk price. 

 

“It is still very early in the season and a lot can change. There are a number of factors we are keeping a close eye on, which is why we’ve retained a wide forecast milk price range.

 

“These factors include global trade tensions and political instability in some of our key sales regions. And, as is always the case, we cannot predict the weather and clearly weather conditions play a big role in global supply.” 

 

Mr Hurrell says the strong demand for the Co-op’s milk and the prices that are being achieved, relative to other milk producing regions, demonstrated the rationale of Fonterra’s new strategy to prioritise New Zealand milk. 

 

“One of our four priorities is to support regional New Zealand. If you take the $7.05 mid-point of today’s revision to our forecast Farmgate Milk Price, it’s another $450 million into regional New Zealand.”

 

“Our earnings outlook for FY20 is based on a forecast Farmgate Milk Price, which still falls within our new forecast range of $6.55 - $7.55 per kgMS. The mid-point of the revised range does mean our teams will need to continue to push hard to achieve our margins, but so far we’re comfortable with how this season is shaping up in terms of underlying business performance.”

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Media Release by the Dairy Companies Association of New Zealand (DCANZ)

NZ-China FTA upgrade agreement

The announcement that an agreement has been reached on the upgrade of the New Zealand-China Free Trade Agreement (FTA) is recognised by the Dairy Companies Association of New Zealand (DCANZ) as a positive marker for the strength of the relationship between New Zealand and China. 

The fact that the agreement comes without improvements to the dairy safeguard arrangements is no surprise to DCANZ.  The potential for this outcome was foreshadowed in late 2018.

“DCANZ is naturally disappointed that the upgrade has not resulted in specific gains for dairy market access” says DCANZ Chairman, Malcolm Bailey.  “That said, the existing FTA provisions will provide duty free access for all New Zealand dairy export to China when the last dairy safeguard ends in 2024.” 

“This complete elimination of all tariffs is an ultimate outcome that we seek from all FTAs.  In this regard we see the New Zealand-China agreement as a best-in-class trade deal and seek similar high-quality outcomes in other of New Zealand’s trade negotiations.”

DCANZ congratulates the New Zealand Government for concluding the upgrade negotiations and appreciates the work that continues to be undertaken to strengthen the broader New Zealand-China trade relationship.

“China remains New Zealand’s number one dairy market, and we value the ongoing constructive relationship between our two countries”.

The ongoing application of safeguards by China over the next four years will result in New Zealand dairy exports incurring in excess of $100 million in tariffs each year.  Additionally, New Zealand dairy exporters of milk powders, cheese and butter will be at growing disadvantage relative to Australian competitors until the dairy safeguards end.

Beyond China, dairy products continue to experience highly constrained access and significant tariffs into many markets.  A 2017 report by NZIER estimated that tariffs suppress the value of current New Zealand dairy production and exports by an estimated $1.3 billion annually, and non-tariff barriers have been estimated to add over $3 billion in costs to dairy exports in the APEC regional alone. 

“This is significant for a sector that is a major contributor to economic activity in regional New Zealand and which is committed to investing to improve sustainability and the value of our production” says Bailey. 

“An additional $1.3 billion of export returns would go a long way in supporting additional investment to grow value and sustainability”.

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Fonterra Shareholders' Council releases report on financial performance

 

 



Please find attached a report of Fonterra’s financial performance since its inception in 2001.

This work, commissioned by Fonterra’s Shareholders’ Council, came about in response to a heightened level of commentary within the supplier base, media and the financial community in relation to the perceived performance of Fonterra since it was formed in 2001. The report has been prepared by an independent corporate advisory firm and provides a view of actual performance over the last 17 years based on sound methodology and relevant financial information.

“The Council’s goal is the creation of long term value for our Farmer Shareholders,” says Council Chairman Duncan Coull. “We believe our report on the results of the review provides an impartial and reliable overview of where we’ve come from, with a view to moving forward positively and effectively. It will be a useful input into the ongoing discussions about our Co-op’s continued evolution.”

 

For more information contact:

Duncan Coull

Chairman

Fonterra Shareholders Council

Ph: 0274 727 110

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