Fonterra milk prices on the up

The National Business Review has a story about how Fonterra’s milk powder prices on its online auction are up 5.7%  or $US3022 a tonne from last month.

Again, the high Kiwi dollar wipped out most of the gain.

The NBR’s story includes comment from Fonterra Global Trade managing director Kelvin Wickham:

Whole milk powder prices surged further on the back of Fonterra’s latest online auction early this morning.

Prices averaged $US3022 a tonne, up 5.7% against last month’s trading event.

This flies in the face of global analyst predictions last month that forecast a drop in the average price which has climbed about 65% since July. CLICK HERE to read more.

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Fonterra close to unveiling plans

The New Zealand Herald has a story about how Fonterra is expected to announce its second proposal for capital reform within the next fortnight.
 
Fonterra is facing pressure and increased competition from other dairy nations, including America, Ireland and the Netherlands.

It needs more moolah to stabilise its balance sheets against drought and other shooks and to advance its global growth ambitions into the highly lucrative ingredients and brands markets (see Paediatric and health and wellness nutrition, proteinised beverages and nutraceuticals and specialised cheeses).

The proposed restructure would be done in stages and take up to four years to achieve, says Fonterra chairman Henry van der Heyden (above right):

Dairy giant Fonterra is expected to unveil its second proposal for capital structure reform within days as the threat to its world-beating exporter status gathers pace in rival dairying countries.

Parties close to the capital structure reform plan indicated New Zealand’s biggest company would reveal the long-awaited proposal within a fortnight. READ MORE.

Speaking of the New Zealand dairy giant, Scoop has a story about how the price of milk powder jumped more tha 24% on its Cooperative Group’s online auction.  CLICK HERE to read more.

NZ dairy futures taking shape

The New Zealand Herald has a story about how the first global dairy futures market being established by the New Zealand Stock Exchange (NZX) will cement the country’s position as a leader in the industry.

However, there is concern that some dairy farmers won’t be financially literate enough to use or understand how the markets work.

There are comment from NZX head of traded products, Fiona Mackenzie, Fonterra’s head of global trade, Kelvin Wickham, and Fonterra Shareholder Council chairman, Blue Read, and veteran farming leader Charlie Pedersen:

The development of the world’s first global dairy futures market could cement New Zealand’s position as an industry leader, NZX says, but there are doubts that farmers will have the financial sophistication to use it.

Sharemarket operator NZX is designing the futures platform to help world dairying players manage their risk in increasingly volatile markets. READ MORE.

High NZ Dollar impacting meat and dairy exporters

The Otago Daily Times has a story about how the high exchange rate of the New Zealand Dollar (NZX50) is impacting on meat and dairy exporters like Fonterra and  Alliance Group in New Zealand:

The often-touted export-led recovery could be threatened by a soaring exchange rate which some economists believe could reach US69c. At 5pm yesterday, the currency was trading at US67.33c having opened at US66.99c. READ MORE.