One last word …

Fonterra has released its 2023 interim results, which show the co-op has delivered a half-year profit after tax of $546 million, an earnings per share of 33 cents, and a decision to pay an interim dividend of 10 cents per share alongside a forecast farmgate milk price range of $8.20-$8.80 per kilogram of milksolids.

Chief executive Miles Hurrell says the results for the first half of the year show the co-op is performing well, with profit up 50% against a backdrop of ongoing market volatility and will continue to watch changes in the market closely.

“The outlook for dairy remains positive, with high demand for New Zealand’s quality, sustainable dairy nutrition, and global milk supply likely to continue be constrained.

“There are a number of risks we continue to watch, including the impact of recent weather events in New Zealand on supply chain and milk production.

“Our co-op’s scale, diversity and strong balance sheet positions us well to manage these challenges and we will continue to prioritise higher value products and channels to deliver sustainable returns for farmer owners and unitholders.”

The co-op also upgraded its full-year forecast normalised earnings from 50-70 cents per share to 55-75 cents per share and announced a proposed tax-free capital return to farmer owners and unit holders of around 50 cents per share, subject to completion of the sale of its Chilean Soprole business.

Milk collection is down across the country by 1%, which is not surprising given the extremely wet summer we have experienced. More settled weather appears to have arrived with autumn.

Fonterra will announce its opening forecast farmgate milk price for the 2023/24 season in May.

On another note, a Member’s Bill from ACT Party MP Mark Cameron has put live animal exports back on the political agenda. This has been welcome news for farmers and other businesses involved in the industry.

The government-instituted live-export ban comes into full effect on April 30 this year after a transition/ wind-down period.

Federated Farmers says it is pleased the issue is back on the table and it and the many businesses that have been involved in this trade want discussions re-opened.

The Feds say New Zealand has an international reputation for strong animal welfare. While there has been robust and continuous improvement in our live export practices, the industry is open to recommendations for further protections, including regulation aimed at minimising sea-voyage risk from seasonal weather events.

“The global live cattle trade will continue, but from countries and by exporters with lower animal standards filling the gap enforced on us. If we were still involved, our high standards would push others into lifting their game,” Federated Farmers national board member and Dairy chair Richard McIntyre says.

“We’ve also lost the opportunity to have influence, via commercial relationships, over the welfare of exported animals after they’ve arrived in countries such as China.

“But the debate should be based on facts rather than politics and ideology.

“With industry-initiated Live Export NZ ‘Gold Standard’ animal welfare precautions, and enforcement of the recommendations on sea voyages from the independent review, New Zealand can be a global exemplar in this trade.

“Can New Zealand afford to turn its back on annual export income worth $400m-$500m?”

That is a very good question. Can we afford to turn our backs on half a billion dollars given the state of the economy?

Animal Genetic Trade Association chair Mark Willis says the incoming ban on exporting livestock will not only cost millions of dollars in lost revenue, it will hurt trade relationships, and losses will be felt widely.

In November and December 2021, Dairy Farmer ran a special report on this incoming ban and spoke to several people from rearers, buyers and sellers to the vets accompanying shipments.

Whether you agree with the practice of live imports or not, it is clear those involved want to go back to the table.

Thanks to Rexana Mumby for this month’s stunning photo of Mount Taranaki. Rexana and her partner Regan milk 360 cows at Tariki. She took this photo from one of the paddocks behind their house, where she climbed onto the second tier of silage bales to capture it perfectly.

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