News in brief

Fonterra capital

Fonterra shareholders have almost unanimously approved the return of capital following the sale of Soprole in Chile, voting 99.24% in favour of the scheme of arrangement.

At a meeting on July 26 the co-operative said it is on track to pay 50c a share, around $800 million in total, by the end of August. Final High Court orders will now be sought for the payment process.

Milk price cut

Westpac has slashed its farmgate milk price forecast for the 2023-24 season by $1.10, down to $7.80/kg milksolids.

Senior agri economist Nathan Penny said the main reason is ongoing sluggishness in the Chinese economy. New Zealand milk production in April and May set records for both months and the autumn surge was enough to offset a slow spring and bring the 2022-23 season in ahead of the previous season. Penny expects dairy prices to recover late this year or early next year.

Earnings up

PGG Wrightson has increased its guidance for operating earnings in the financial year just ended from $57 million to $60m.

Acting chair U Kean Seng said the rural servicing company continued to deliver pleasing operational performance in the fourth quarter of the 2023 financial year ended June 30. The guidance remains subject to audit and PGG Wrightson will release its annual results on August 15.

Rural leaders

MISSED: As minister in charge of Cyclone Gabrielle recovery, Kiri Allan will be missed by her region, says Fed Farmers Gisborne Wairoa president Toby Williams.

Applications are open for farmers, foresters, fishers, growers and agribusiness professionals to join one of two programmes being offered next year for the Kellogg Rural Leadership Programme. Kellogg has helped develop rural leaders since 1979. Kellogg scholars are grounded in the food and fibre sector and come from multiple industries and parts of its value chains.

Back in 1860, exporting meat to the other side of the world seemed about as easy as nailing gravy to the ceiling. But a few determined kiwis took the bull by the horns and now our grass-fed beef and lamb is sought-after all around the globe.

At AFFCO, we see the same pioneering spirit alive and well in farmers today. We’re playing our part too – exploring every opportunity to take New Zealand’s finest farm-raised products to the world.