Dairy Sector – Fonterra provides update on Consumer divestment process

By

-

February 19, 2025

Source: Fonterra

Fonterra Co-operative Group Ltd has today provided an update on the process to divest its global Consumer business and integrated businesses Fonterra Oceania and Sri Lanka.

Fonterra CEO Miles Hurrell says the Co-op’s decision to pursue a divestment is grounded in an understanding of where it creates the most value for farmers today and where there’s further room for growth.

“We are clear on our strategy and have a pathway to grow further value for farmer shareholders and the New Zealand economy through our innovative Foodservice and Ingredients businesses. At the same time, we recognise the responsibility we have to find the right steward for iconic brands such as Anchor™, Mainland™ and Western Star™ and an ownership structure that allows these businesses to continue to grow.

“We announced in November 2024 that we are pursuing both a trade sale and Initial Public Offering (IPO) as potential divestment options. Our intention is to thoroughly test the terms and value of both a trade sale and IPO before selecting an option to put to farmer shareholders for a vote. Ahead of that, we are today indicating the next steps that are required in both processes,” says Mr Hurrell.

As part of the trade sale process, over the coming weeks Fonterra will be engaging with potential buyers of the Consumer and associated business.

Alongside this, as part of preparing for a potential IPO, Fonterra has named key management team members and chosen a corporate brand for the entity if it is to be publicly listed.

“Fonterra has chosen Mainland Group as the corporate brand for the group if we are to proceed with an IPO. The Mainland™ brand has strong New Zealand dairy heritage and is also well known by consumers in New Zealand, Australia and across many of our global markets,” says Mr Hurrell.

“I’m pleased to share that René Dedoncker has been named as CEO-elect for Mainland Group. René is currently Fonterra’s Managing Director Global Markets Consumer and Foodservice, leading the businesses in scope for divestment. He joined Fonterra in 2005 and has held several global leadership positions during that time. He has led our Australian business since 2017, including through its recent merger with Fonterra Brands New Zealand to form Fonterra Oceania. 

“We have also appointed Paul Victor as CFO-elect for Mainland Group. Paul has joined Fonterra from ASX-listed Incitec Pivot Limited, where he was Chief Financial Officer. Paul brings more than 30 years of experience, working across functions including finance, treasury, tax, financial planning and analysis, control, M&A, investor relations and IT.

“René and Paul are very capable leaders with the experience to take these businesses forward into their next phase. Both will lead roadshow meetings with potential investor groups, commencing in March.

“We recognise the ongoing interest in the divestment process and will provide further updates as we make progress,” says Mr Hurrell.

Fonterra’s chosen option will balance:

Maximising long term value for farmer shareholders, including the best return on capital invested;
Cementing Fonterra’s competitive advantage in Ingredients and Foodservice; and
Expanding international channels to market for high-quality New Zealand dairy.

Fonterra continues to target a significant capital return to be made to farmer shareholders and unit holders following the divestment.

About Fonterra 

Fonterra is a co-operative owned and supplied by thousands of farming families across Aotearoa New Zealand. Through the spirit of co-operation and a can-do attitude, Fonterra’s farmers and employees share the goodness of our milk through innovative consumer,foodservice and ingredients brands. Sustainability is at the heart of everything we do, and we’re committed to leaving things in a better way than we found them. We are passionate about supporting our communities by Doing Good Together. 

MIL OSI

Stats NZ information release: Business price indexes: December 2024 quarter

By

LiveNews Publisher

-

February 19, 2025

0

Source: Statistics New Zealand

Business price indexes: December 2024 quarter – 19 February 2025 – Business price indexes (BPI) includes the producers price index (PPI), capital goods price index (CGPI), and farm expenses price index (FEPI).

Key facts
In the December 2024 quarter compared with the September 2024 quarter:

the output producers price index (PPI) fell 0.1 percent
the input PPI fell 0.9 percent
the farm expenses price index (FEPI) fell 0.1 percent
the capital goods price index (CGPI) rose 0.4 percent.

Files:

MIL OSI

Rural News – Farmer confidence jumps to 10-year high – Federated Farmers

By

LiveNews Publisher

-

February 19, 2025

0

Source: Federated Farmers

Farmer confidence has risen to its highest level in over a decade, rebounding from record lows in recent years.

Federated Farmers’ latest Farm Confidence Survey shows falling interest rates, rising incomes and more favourable farming rules have all played a major role in that improvement.

“I’ve definitely noticed a significant shift in the mood of rural New Zealand. Farmers are feeling a lot more positive,” Federated Farmers president Wayne Langford says.

“The last few years have been bloody tough for a lot of our farming families, with falling incomes, rising interest rates and unpaid bills starting to pile up on the kitchen bench.

“At the same time, we’ve also been struggling with an incredibly challenging regulatory environment and farming rules that haven’t always been practical, affordable or fair.

“These survey results paint a clear picture of a sector finally able to breathe a sigh of relief as some of that weight is lifted.”

The January survey shows farmers’ confidence in current general economic conditions has surged from a deeply negative -66% in July 2024 to a net positive score of 2%.

This marks the largest one-off improvement since the question was introduced in 2016.

Meanwhile, a net 23% of farmers now expect better economic conditions over the next year – the highest confidence level since January 2014.

There has also been a sharp lift in profitability, with 54% of farmers now reporting making a profit – double the number in the last survey six months ago.

Langford says it’s important to note that, despite confidence being at its highest point in more than a decade, it’s still only just in the positive.

“It’s been a remarkable recovery in farmer confidence over a short period of time, but I’m very conscious that we were coming off an extremely low base.

“We’ve come a long way, but there’s a long way to go yet. Federated Farmers will keep pushing hard to cut costs out of farmers’ businesses and reduce some of that regulatory burden.”

The survey results show regulation and compliance costs remains the greatest concern for farmers, followed by interest rates and banks, and input costs.

“When it comes to farmer confidence, a lot of it comes down to what’s coming into our bank account, and what’s going out the other side. It’s a simple equation,” Langford says.

“A lot of that is market driven, and farmers are used to riding those highs and lows, but Government rules and regulations have a significant impact on farmers’ costs.

“Those compliance costs really can make or break your season and have a significant impact on a farmer’s confidence to keep investing in their business.

“The Government have made a great start cutting through red tape for farmers and repealing a lot of the most unworkable rules, but there’s still a lot of work to be done.”

Interest rates and banking issues have consistently been a top concern for farmers, which is why Federated Farmers fought so hard for a banking inquiry, Langford says.

“Interest payments are a huge cost for most farming businesses and farmers have been under massive pressure from their banks in recent years.

“We want to see the Government take a much closer look at our banking system and whether farmers are getting a fair deal from their lenders.”

The survey shows farmers’ highest priorities for the Government are the economy and business environment, fiscal policy, and reducing regulatory burdens.

“If the Government are serious about their ambitious growth agenda and doubling exports over the next decade, this is where they need to be focusing their energy,” Langford says.

“For farmers to have the confidence to invest in our businesses, employ more staff, and grow our economy, we need to have confidence in our direction of travel as a nation too.

“As a country, we’re never going be able to regulate our way to prosperity, but with the right policy settings, we might just be able to farm our way there.”

The report’s key findings include:

– General economic conditions (current): Farmer confidence has surged by 68 points since July 2024, rebounding from a deeply negative -66% to a net positive score of 2%. This marks the largest one-off improvement since the question was introduced in 2016.

– General economic conditions (expectations): Optimism is rising, with net expectations increasing by 29 points since January 2024. A net 23% of farmers now anticipate better conditions over the next year-the highest confidence level seen since January 2014.

– Farm profitability (current): The number of farmers making a profit has doubled since the last survey, with 54% of farmers now reporting a profit-up from just 27%. The net profitability score has surged by 60 points, the strongest turnaround since July 2022.

– Farm profitability (expectations): Confidence in future profitability continues to climb, with a net 31% of farmers expecting improvement over the next 12 months-a 41-point increase since July 2024. This is the highest forward-looking profitability score since July 2017.

– Farm production (expectations): A net 16% of farmers expect production to increase in the next year, extending a positive trend. This marks the first time since 2016/17 that there have been three consecutive periods of predicted growth.

– Farm spending (expectations): Spending intentions have strengthened, with a net 23% of farmers planning to increase spending over the next 12 months-up 26 points from July 2024. This is the strongest expected rise since January 2023.

– Farm debt (expectations): 41% of farmers plan to reduce their debt in the next year, up from 23% in July 2024. Lower interest rates, improved confidence, and stronger production forecasts are driving this shift.

– Ability to recruit (experienced): Hiring challenges persist, with a net 16% of respondents reporting difficulty recruiting skilled staff in the past six months, largely unchanged from July 2024. However, this is the least difficult period for recruitment since July 2012.

– Greatest concerns (current): The top concerns for farmers remain Regulation & Compliance Costs, Debt, Interest & Banks, and Input Costs.

– Highest government priorities: Farmers want the Government to prioritise the Economy & Business Environment, Fiscal Policy, and reducing Regulatory Burdens.

MIL OSI

Finance Sector – Comments on RBNZ interest rate decision from Leigh Hodgetts, country manager, Finance and Mortgage Advisers Association of New Zealand (FAMNZ)

By

LiveNews Publisher

-

February 19, 2025

0

Source: Finance and Mortgage Advisers Association of New Zealand (FAMNZ)

RBNZ interest rate decision – “If as expected, the Reserve Bank of New Zealand (RBNZ) reduces the official cash rate, we call on all banks to quickly pass on the full reduction to both new and existing borrowers.

“Our message to borrowers who do not see a reduction in their repayments is to contact your lender and ask why. If you don’t get satisfaction see your mortgage adviser as the market is becoming more competitive and advisers can assist you to refinance if necessary.

“The general feeling across New Zealand is that there will be further rate cuts during 2025, and we are already seeing competition heating up between the banks.

“Some lenders are already factoring this into their rates, with a few headline rates coming out from Westpac at 4.99 per cent for a three year fixed rate, and TSB moving yesterday on a two year fixed rate at 5.29 per cent.

“A rate cut will bring more good news for borrowers who are sitting on variable rates and looking for a good rate to lock in for 2025 and beyond.

“It will also increase the ability of consumers to borrow and purchase a home, while bringing some relief for those doing it tough after long periods of higher rates.

“The changing rates will present consumers with many options including whether to fix rates or not, and advisers are already receiving many of these types of enquiries. The type and structure of your loan will depend on your individual circumstances and we encourage borrowers to see a mortgage adviser so that this can be discussed. When rates are going down it is important not to make these decisions without advice.

“The New Zealand mortgage market is becoming more competitive, and mortgage advisers have played a large part in this. More people are choosing to use an adviser because we assist them to find the product that is in their best interests and best suits their specific individual needs.”

MIL OSI

Safety improvements for busy SH5 intersection

By

LiveNews Publisher

-

February 19, 2025

0

Source: New Zealand Government

A busy intersection on SH5 will be made safer with the construction of a new roundabout at the intersection of SH28/Harwoods Road, as we deliver on our commitment to help improve road safety through building safer infrastructure, Transport Minister Chris Bishop says.

“Safety is one of the Government’s strategic priorities in transport investment, alongside economic growth and productivity, and funding is available for safety improvements to be made at the highest-risk locations, like this one between Tīrau and Tārukenga,” Mr Bishop says.

“SH5 between Tīrau and Tārukenga is an important route for locals and tourists, freight and agricultural vehicles travelling between Waikato and Bay of Plenty. Planned safety improvements will complement work already completed between Ngongotahā on SH5 and locations along SH1 between Cambridge and Taupō.

“The Harwoods Road roundabout will start construction this year in September and take about 8 months to build. It is one of several safety improvements planned for the stretch of SH5 between Tīrau and Tārukenga Marae Road.

“The Waimakariri Road right-turn bay construction includes some road widening near the intersection and will be built as part of resealing work next month.

“Funding has also been allocated to complete design work for a roundabout at SH28/Whites Road and general widening between Whites and Harwoods Roads to allow for wide centrelines. Completing this design work means they will be ready to go as further funding becomes available.

“The Government is focused on improving road safety through better maintenance and resilience of the state highway network, fixing potholes, strong enforcement by Police on the leading causes of deaths and serious injuries, and building new and safer roads.

“Around 8,500 vehicles use the SH28/Harwoods Road intersection every day, and up to 20% of them are heavy vehicles. Building new and safer infrastructure is all part of our plan to help Kiwis get to where they need to go quickly and safely, and I look forward to this work getting underway later this year.”

MIL OSI

Serious crash in Hunua

By

LiveNews Publisher

-

February 19, 2025

0

Source: New Zealand Police (District News)

Police are attending a serious crash in Hunua.

At around 9am, two vehicles collided at the intersection of Paparimu and Hunua roads.

One person is currently in a critical condition and will be airlifted to Auckland City Hospital.

The Serious Crash Unit will examine the scene.

Diversions are in place in the area and an investigation will commence into the crash in due course.

ENDS.

Jarred Williamson/NZ Police

MIL OSI

The challenge of gene editing a plant (NT)

By

LiveNews Publisher

-

February 19, 2025

0

Source: Plant and Food New Zealand – Press Release/Statement:

Headline: The challenge of gene editing a plant (NT)

Gene editing is a new technology with the potential to breed new crops faster. With changing regulations worldwide on how gene editing can be incorporated into food production systems, what does it actually take to gene edit a plant crop?   This week Scigest host and scientist Jay Jayaraman speaks to Zac Hanley, GM Science – New Cultivar Innovation about the science of gene editing plants. They talk about the process of gene editing, some of the challenges in using the technology and how gene editing could help develop the plant varieties of the future.
For more about the use of gene technologies in food production, see https://www.plantandfood.com/en-nz/gene-technologies. To view our full catalogue of podcasts including extra links on some podcasts please go to our Scigest pages: www.plantandfood.com/scigest

– –

MIL OSI

Serious crash in Pukekohe

By

LiveNews Publisher

-

February 19, 2025

0

Source: New Zealand Police (District News)

Police are attending a serious crash in Pukekohe this morning.

The crash occurred at around 9.15am, involving a vehicle and pedestrian at the intersection of Ward and Wellington streets.

The pedestrian is currently in a serious condition.

Police are aware that traffic has built up in the area, and we are advising the community that there will be diversions put in place.

Please avoid the area if at all possible.

ENDS.

Jarred Williamson/NZ Police

MIL OSI

Ara Tūhono – Pūhoi to Warkworth motorway wire barrier maintenance underway

By

LiveNews Publisher

-

February 19, 2025

0

Source: New Zealand Transport Agency

Work to ensure the continued safety of wire rope barriers on State Highway 1 Ara Tūhono – Pūhoi to Warkworth motorway got underway this week.

Crews are carrying out maintenance on a 5km section of barriers located between the Johnstones Hill tunnels and the Watson Rd bridge crossing (the third bridge when heading north) in the southern section of the motorway.

Work will take place overnight, between 6pm and 6am, Monday to Thursday, to minimise disruption. During the works, there will be a 60km/h temporary speed limit in place with a shoulder and single lane closure past the work zone. Work will be limited to a maximum of 1.5km, within the 5km section, at any one time.

The works are expected to take up to 3 weeks to complete, subject to weather conditions.

Please visit the NZTA Journey Planner website for up-to-date information on these works, including any changes due to weather.

Journey Planner(external link)

NZTA thanks everyone for their patience as we undertake these important works to ensure the continued safety of road users on the Ara Tūhono – Pūhoi to Warkworth motorway.

MIL OSI

REMINDER: Planned overnight maintenance closures for State Highway 2, Remutaka Hill next week

By

LiveNews Publisher

-

February 19, 2025

0

Source: New Zealand Transport Agency

The first planned night closures of State Highway 2 Remutaka Hill for 2025 begin this coming Sunday.

The route will be closed for planned maintenance for five nights, 9 pm to 4 am, from Sunday, 23 February to Friday morning 28 February. (Sunday to Thursday nights).

Road crews will be carrying out resurfacing, sign replacement, clearing drainage, maintaining barriers, and doing line marking.

Drivers must be ready for the closures and ensure they book and escorted crossing if they need to travel the route at night. The only alternative detours are via the Pahiatua Track or Saddle Road to the north – a much longer trip.

Escorted crossings for drivers of light vehicles are available during closure nights but must be booked in advance and can be made here:
Remutaka Hill Closure Escort Booking Form(external link)

Because major resurfacing works are planned, there will only be one escorted crossing per direction each night. It means bookings are essential.

Full closures mean maintenance works can be finished faster, and they are safer for road crews. Traffic volumes are also lighter at night, compared to during the day, so fewer drivers are affected.

Important information for Remutaka Hill closures

Escorted crossings for light vehicles are available during closure nights but must be booked in advance. We always communicate well before planned closures and provide contact details so bookings can be made.
Bookings can be made online on the NZTA website – Remutaka Hill Closure Escort Booking Form(external link)
Bookings are essential – drivers who turn up without one risk being turned away. If you have a genuine emergency on the night, the hill manager will decide how best to help you.
The escorted crossings are for light vehicles only. To keep our contractors safe, heavy vehicles cannot be accommodated.
Full access is always available for emergency services.

More information about planned maintenance closures for Remutaka Hill can be found here:

State Highway 2, Remutaka Hill, planned night closures. February – June 2025:

Nights Closed	Start 9 pm	Finish 4 am
5	23 February	28 February
1	9 March	10 March
5	6 April	11 April
1	18 May	19 May
1	15 June	16 June

MIL OSI