All not lost for farmers

Taranaki farmers are calling for calm and no surprises from Fonterra after the company announced a $196 million loss.

The dairy giant, the largest corporation in New Zealand, announced the loss for the 2018 financial year yesterday morning, blaming overly optimistic forecasting, high butter prices, an increase in the farmgate milk price and high costs.

Taranaki sharemilkers’ section chairperson Matthew Herbert said the company had to focus on no surprises.

‘‘I think that there have been changes at the company and that Fonterra is now very well aware of what farmers expect from the company.

‘‘As long as there are no more surprises I think that it will be a very good season for sharemilkers.’’

He described the announcement as ‘‘disappointing but not unexpected’’.

‘‘I think that, for sharemilkers, the retention from milk price to prop up the company, hurts sharemilkers.

‘‘It’s taking money away from sharemilkers, who are not shareholders, and there’s an absolute difference there they need to remember.’’

The financial loss was predictable, Federated Farmers Taranaki president Donald McIntyre said.

‘‘It means there’s no additional dividends from last season. That depends on how you rated. I

‘‘t was well signalled that it wasn’t coming anyway.

‘‘For Taranaki in particular we actually didn’t get a lot of milk in the vat last year.’’

He said nothing was ever easy in farming but the last few years had been more challenging than most.

‘‘What farmers focus on is what they get in their pocket. The weight and balance sheet says last year’s payout was as good as we’ve had for a long time.

‘‘This year’s predicted payout is still pretty good.

‘‘Don’t lose too much sleep about some of these things.’’

He said it was important for Fonterra to perform but it wasn’t the end of the world.

‘‘From where we are our job is to get milk in the vat and do it as efficiently as we can.’’

Taranaki-King Country MP Barbara Kuriger said there had been a lack of confidence over a period of time and the loss was not a surprise.

‘‘There’s a bit of worry out there about the vibrancy of Fonterra.

‘‘With the milk price being at the level it is, it’s certainly not disastrous.’’

It was slightly concerning that they still had an acting CEO several months after Theo Spierings announced his resignation, but they were working through the issues, she said.

‘‘I’m positive about the future and we just need to be cautious.’’