Fonterra CEO Miles Hurrell says 2019/20 was a good year for the co-op, with profit up, debt down and a strong milk price. The result, a profit of $659m, may have brought a cheer from the co-op’s farmer-suppliers and Hurrell deserves a cheer, too, for succeeding in turning around the fortunes of the co-op, after two years of losses.
“We increased our profit after tax by more than $1bn, reduced our debt by more than $1 billion and this has put us in a position to start paying dividends again,” he says.
“I’m proud of how farmers and employees have come together to deliver these strong results in a challenging environment. They have had to juggle the extra demands and stress of COVID-19 and have gone above and beyond. I would like to thank them for their hard work and support.”
Fonterra settled on a milk price for the season just past of of $7.14kg/MS—-one of the highest on record—and is maintaining the current forecast for the current season within the range of $5.90-$6.90.
Turnover was up 5% at $21bn, equating to 6.8% of NZ’s GDP—with $11bn returned to suppliers.
Not a word out of the Beehive, despite the result underlining the importance of the dairy industry to the national economy.
But Federated Farmers’ Andrew Hoggard speaks for the rural community when he says “There’s good, positive momentum going forward…it will lift a lot of people’s spirits”. Continue reading “A cheering result from Fonterra, but there are challenges ahead”