Fon­terra bids for Mur­ray Goul­burn

Dairy News Australia - - FRONT PAGE - Rene De­doncker.

Fon­terra Aus­tralia has an­nounced it is plan­ning to grow its Aus­tralian milk sup­ply and pro­cess­ing ca­pac­ity. Fon­terra Aus­tralia man­ag­ing di­rec­tor René De­doncker said the busi­ness was gen­er­at­ing sus­tain­able re­turns and was now look­ing to grow to meet higher de­mand for dairy. “We have a clear strat­egy which is de­liv­er­ing and we have the right as­sets and prod­uct mix on the ground,” Mr De­doncker said. “With our plants full we will be ac­cel­er­at­ing our cap­i­tal in­vest­ments in re­gional Vic­to­ria and Tas­ma­nia, play­ing to our strengths in cheese, whey and nu­tri­tion­als.” Fon­terra has posted an 11 per cent de­cline in full-year profit as mar­gins fell across its in­gre­di­ents and con­sumer and food ser­vice di­vi­sions. The NZ co-op­er­a­tive last month an­nounced a profit of $745 mil­lion in the 12 months ended July 31, from $834 mil­lion a year ear­lier. Sales rose to $19.2 bil­lion from $17.2 bil­lion while cost of sales climbed to about $16 bil­lion from $13.6 bil­lion. Ris­ing prices off­set a three per cent de­cline in volumes at 22.9 bil­lion litres of milk equiv­a­lent. The fi­nal cash pay­out was $6.52 for the 2016–17 sea­son, for a 100 per cent share-backed farmer. The results in­clude an im­pair­ment loss of $35 mil­lion on Fon­terra’s in­vest­ment in Be­ing­mate, its dis­tri­bu­tion part­ner in China, re­duc­ing the car­ry­ing value to $617 mil­lion.

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