NEW ZEALAND – Fonterra, a leading global dairy company based in New Zealand, has released its financial results for the year 2024 and offered insights into its outlook for the remainder of the year.
Reflecting on the past year, Fonterra highlighted the success of its new capital structure, which has attracted returning Co-op farmers drawn by flexible shareholding options and the Co-op’s stability. This has resulted in a strong pipeline of farmers eager to join the Co-op.
The company has been leveraging its scale, flexibility, and robust balance sheet to provide benefits to its farmers. Measures include expediting cash payments to farmers through revised Advance Rate guidelines.
In terms of financial transactions, Fonterra returned US$804 million to farmer shareholders and unit holders following the divestment of Soprole, along with completing the sale of its DPA Brazil JV with Nestlé to Lactalis.
Since announcing its on-farm emissions target, Fonterra has been collaborating with customers to capitalize on its farmers’ sustainability credentials.
This involves introducing customers to its regenerative agriculture position, acknowledging its farmers’ pastoral farming system.
Meanwhile, efforts to decarbonize New Zealand operations are underway, aligning with the Co-op’s emissions reduction targets.
Initiatives include commissioning a wood biomass boiler at Waitoa and plan to electrify a 20-megawatt boiler at the Edendale site.
Additionally, the company has implemented new technology in its manufacturing base, unlocking 8,000 MT of additional production capacity for high-value UHT cream.
“We’ve continued to decarbonize 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, “CEO Mr. Hurrell said.
“We’ve also deployed a new technology within our manufacturing base which has unlocked 8,000 MT additional production capacities for our high-value UHT cream.”
Looking ahead, Fonterra acknowledges global inflationary pressures are easing but remains vigilant regarding potential volatility due to geopolitical instability.
However, the company expressed confidence in its partnership with Kotahi and its diversified market presence, positioning itself well to handle disruptions in global supply chains or shifts in demand from key importing regions.
Mr. Hurrell concluded by expressing satisfaction with Fonterra’s performance in the first half of FY24 and anticipates continued success in delivering value for its farmer shareholders and unit holders in the second half.
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