Fonterra half-year results 'just what the IMF ordered'

Fonterra shareholders will welcome the strong and positive performance turned by Fonterra Cooperative Group over the past half-year.

“To have a result like this in a period of high commodity prices is a major achievement in itself,” says Willy Leferink, Federated Farmers Dairy vice-chairperson.

“It comes only a day after the International Monetary Fund (IMF) downgraded its growth projection for the New Zealand economy to just one percent. The nation’s dairy farmers and dairy cooperatives, like Fonterra, are showing the way forward.

“This is also the first time Fonterra has reported a profit for the half year so it is an impressive performance. In terms of adding value, revenue from commodities and ingredients is up almost a quarter on last year at $6.3 billion.

“What strikes me is the 21 percent surge in revenue to $9.4 billion. This is revenue that largely comes back into New Zealand and that benefits all New Zealanders.

“As a direct consequence of these results, Fonterra shareholders will have greater certainty on the forecast payout and that is most welcome.

“That said Federated Farmers is keen for Fonterra to explore greater retentions in order to strengthen its balance sheet and to take advantage of opportunities that may come its way. In terms of this, Fonterra’s progress in Asia, Africa, Middle East and Latin America is very exciting.

“Given the IMF wants the New Zealand Government to be back in surplus by 2015-16, we need to export and Fonterra and its farmer shareholders are really showing the way.

“In fact, it’s just what the IMF ordered,” Mr Leferink concluded