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Michael (& COVER), William, Chris,
Bethanne, Peter & Margaret,
Southland
Our three strategic choices
are guiding everything we do
Focus on New Zealand milk
Be a leader in sustainability
We believe New Zealand milk is the most valuable milk
in the world. With demand for sustainable dairy nutrition
growing at a pace that will outstrip supply, we are creating
more value for our farmer owners and unit holders by further
differentiating our milk in the global market.
Globally, people want to know where their food comes from
and the impact it leaves. New Zealand milk is amongst the most
carbon-efficient in the world, produced by a proven pasture-based
model and underpinned with strong animal wellbeing standards.
By leading in sustainability, we can respond to changing demands
from customers, capital providers and regulators.
Be a leader in dairy
innovation & science
Our Co-op has a long and proud heritage of dairy innovation.
We are building on this expertise by continuously developing
new dairy nutrition solutions and partnerships which help
people live healthier and longer lives.
Contents
About this report
Welcome to our Annual Review, which forms
part of our end-of-year reporting suite.
We know there are a wide range of stakeholders who are
interested in our Co-op. This report gives an integrated view of
our performance across financial and non-financial measures,
and our targets for the future. It is supported by a series of
supplementary reports where stakeholders can find more
detailed information most relevant to them.
This Annual Review provides a summary of our environmental,
social and economic activities and performance. It covers key
achievements and performance data, as well as the challenges
and opportunities we have faced across our Co-op over the last
12 months. It is a chance to reflect on our work, quantify our
impacts and look to the future.
OVERVIEW
About us
Letter from Chair of Board
Letter from CEO
Our purpose, values and goals
How we create value
Creating value for stakeholders
Our year in review
Doing Good Together
BUSINESS PERFORMANCE
ON-FARM
Honour roll
OFF-FARM
PRODUCTS & CUSTOMERS
FONTERRA MANAGEMENT TEAM
NON-GAAP MEASURES
GLOSSARY
DIRECTORY
03
04
05
08
10
11
12
14
15
22
30
36
43
46
50
54
56
60
Fonterra uses several non-GAAP measures when discussing financial performance.
Non-GAAP measures are not defined or specified by NZ IFRS.
Management believes that these measures provide useful information as they
provide valuable insight on the underlying performance of the business. They may
be used internally to evaluate the underlying performance of business units and to
analyse trends.
These measures are not uniformly defined or utilised by all companies. Accordingly,
these measures may not be comparable with similarly titled measures used by other
companies. Non-GAAP financial measures should not be viewed in isolation nor
considered as a substitute for measures reported in accordance with NZ IFRS. Non-
GAAP measures are not subject to audit unless they are included in Fonterra’s audited
Financial Statements.
Please refer to the Non-GAAP measures section for further information about non-
GAAP measures used by Fonterra, including reconciliations back to NZ IFRS measures.
Definitions of non-GAAP measures used by Fonterra can be found in the Glossary.
OUR 2023 SUITE
OF REPORTS
Annual Review 2023
(Referenced as AR)
Financial Statements 2023
(Referenced as FS)
Business Performance
Report 2023
(Referenced as BP)
Sustainability Report 2023
(Referenced as SR)
Governance & Statutory
Disclosures 2023
(Referenced as G&S)
Modern Slavery Statement
2023
(Referenced as MS)
Farmgate Milk Price
Statement 2023
(Referenced as MP)
OUR REPORTS ARE AVAILABLE
FROM FONTERRA.COM/NZ/
EN/INVESTORS.HTML
04
About us
We’re a dairy co-operative, owned
and supplied by farming families
across Aotearoa, New Zealand.
Through the spirit of co-operation
and a can-do attitude, Fonterra’s
farmers, along with almost 18,000
employees around the world,
share the goodness of our milk
through innovative consumer,
foodservice and ingredient brands.
We believe that food and nutrition are essential to
sustain us today and for future generations to thrive.
This is why we take great care with every drop
of milk, from the beginning, through every step
of the way. It’s our dedication and care that enables
us to produce safe and high-quality food, and our
dairy know-how and innovation capability mean
we can do amazing things with our milk to enhance
people’s lives.
Our farmers farm naturally and because of this,
we are proud to have one of the lowest on-farm
carbon footprints in the world.
We want to be the most emissions efficient and
environmentally sustainable dairy co-op. To do this
we are reducing our footprint, restoring nature,
and adopting a regenerative mindset.
Our portfolio of well-known brands includes
Anchor, Anmum, Anlene, Nutiani, NZMP and
Farm Source.
9,012
1,366
Revenue
($ Million)
24,580
4,619
6,192
FY221: 21,901
2,518
2,239
Raw milk collected
(million litres)
17,803
FY22: 18,455
16,3332
New Zealand
Australia
China
Rest of Asia Pacific
Rest of World
4
8
5
Manufacturing
sites
45
FY22: 48
28
1,829
1,809
672
1,534
Employees
(FTE)
17,993
FY22: 19,608
12,149
1 FY22 has been re-presented due to the Soprole business being moved to held for sale and classified as discontinued operations (and subsequently sold).
2 Amount collected during FY23 (which differs to the 16,317 million litres collected during the 2022/23 season ended 31 May 2023).
Letter from
Chair of
Board
Kia ora,
Miles and the team have
delivered a third consecutive
year of strong performance
overall, despite facing into
difficult market conditions
in a number of regions.
Final Farmgate Milk Price
$8.22per kgMS
Peter McBride
– Chair
05
The team can be proud of delivering a reported profit after tax
of $1.58 billion, equivalent to 95 cents per share and up 170%
on last year.
We faced real challenges on-farm in New Zealand this year,
as extreme weather events took a toll on our communities. In
February, Cyclone Gabrielle hit the North Island with Northland,
Coromandel, the Hawke’s Bay and Gisborne among the hardest hit.
In the Hawke’s Bay and Gisborne some communities were cut
off and isolated. The Co-op accessed these areas via helicopter
to assess the damage, understand farmers’ needs and provide
provisional supplies and veterinary support. Many suffered
losses to their property, had to manage animal welfare issues
and support the wellbeing of their families and neighbours.
As a Co-op, we look after each other when it comes to natural
disasters like this. The Co-op helps farmers to manage these
types of risk through what is known as a Force Majeure event.
In accordance with the Terms of Supply, where we had to instruct
a farmer to dispose of milk or dry off, appropriate compensation
for these farmers was made.
Volatile milk price environment
For share aligned farmers this strong earnings performance is
helpful in the context of a declining Farmgate Milk Price.
Our final milk price for the 2022/23 season was $8.22 per kgMS
down from the high forecast midpoint of $9.50 in June 2022. The
reduction is due to lower than anticipated demand for imported
products, particularly from China, which contributed to the
Global Dairy Trade prices dropping, with the average whole milk
powder price down 16% compared to last season.
The impact would have been greater, if not for the team’s efforts
to utilize the scale of the Co-op and shift milk into the products
and places that were delivering the most value at the time.
06
Reviewing our Board size and composition:
Since the Co-op’s formation it has been envisaged that the Board
size would be rationalised over time. With the Capital Structure
review, asset divestment programme and long-term strategy
development largely behind us, the Board believes it is the right
time to review its size and composition.
We have shared our initial thinking from that review, which we
are discussing with farmers and shareholders in advance of this
year’s Annual Meeting – at which we plan to seek endorsement
for the changes via a vote.
Having now been part of the Co-op’s Board for five years, the
last three as Chair, I’m confident that reducing the size of our
Board will improve the dynamics within the group, encouraging
greater participation from directors, and maintaining access to
the necessary skills and experience to govern the Co-op into
the future.
Our current thinking is to reduce the number of directors on
the Board from 11 down to nine. The balance between Farmer
Elected and Appointed Directors would be maintained, with a
composition of six Farmer Elected Directors and three Appointed
Directors. As is the case today, the Chairman would be one of
the Farmer Elected Directors.
Strong performance underpinned
by non-reference products
While on the one hand our milk price was negatively impacted
by market forces, on the other our earnings did benefit from
favourable market conditions, including strong margins in our
Ingredients channel, in particular the cheese and protein portfolios.
There are two other key performance metrics the Board is
particularly pleased with this year:
– Return on Capital for the last 12 months is 12.4%, up from
6.8% in the comparable period.
– We have also exceeded our performance target for the Co-op’s
balance sheet strength, with the gearing ratio at 28.8% and
debt to EBITDA at 1.3x, even after adjusting for the impact of
the Capital Return.
Full year dividend at the maximum end
of our policy
In acknowledgement of the declining milk price environment and
the impact that has on farmers, the Board has made the decision
to pay a final dividend slightly above our dividend policy.
We are pleased to deliver a strong full year dividend of 50 cents
per share and unit – comprising of an interim dividend of 10
cents per share and a final dividend of 40 cents per share.
This is in addition to the 50 cents per share capital return
paid to shareholders and unit holders in August, following the
divestment of Soprole.
This brings the total cash return for a fully share-backed farmer to
$9.22 per kgMS for the 2022/23 season.
The Board believes it is the
right time to review its size
& composition.
Flexible shareholding
Our Flexible Shareholding capital structure has been in place
since late March. It’s generally working as expected and we are
comfortable with the liquidity in the market.
Following the transition to the Flexible Shareholding structure
Fonterra implemented market maker arrangements to support
liquidity in the Farmer Shareholders’ Market. We also have
the ability to buy back shares as part of our ongoing capital
management programme, where we see it as value accretive
to the Co-op.
Our share price has come down. This was anticipated and well-
signalled before shareholders voted to support the changes to
our capital structure. There has also been a share price impact as
a result of the recent capital return. Over time we expect that the
price will reflect the Co-op’s financial performance, and the value
farmers see in that. Ultimately farmers will determine the value
of the shares.
Flexible Shareholding is the right capital structure for our Co-op.
By making it easier for farmers to join or stay with the Co-op, it
will help us to maintain a sustainable milk supply.
Delivering our strategy
Outlook for the year ahead and beyond
We remain confident in delivering our long-term strategic targets
and plan to provide shareholders and unit holders with a strategic
update in early 2024.
Prior to that we will be confirming our Scope 3 target, which
Miles and I signalled at last year’s Annual Meeting.
Being a leader in sustainability is a fundamental part of our
strategy. Introducing a Scope 3 target is a critical step for us
when we consider our global competitive landscape, international
market access, funding sources, and continued partnerships
with customers.
We need to set a target that is meaningful and brings us into line
with our international competitors – many of which have already
set targets.
We know that the rate of change farmers are being asked to live
with is already challenging. Good progress towards the target can
already be made using the tools and information available to us
today. The Co-op will support farmers to meet this target through
the sharing of best practice and innovation. Our methodology
will continue to evolve alongside the science that supports these
changes. We will work with you, not against you.
Looking out to the end of the current season and new
financial year it is clear that we will face a challenging operating
environment – for our individual farming businesses and for
our Co-op.
We know that the 2023/24 forecast Farmgate Milk Price range is
below breakeven for many of our farmers. The Co-op is entirely
focused on performance and, as you will be on farm, reducing its
costs to offset the impact of inflation over the coming years.
Dairy is a long-term game and as an exporter, we need to
accept that we are impacted by demand and supply dynamics,
commodity prices and geopolitical events. The Co-op does its
best to try and smooth the edges and optimise value, but there
will always be volatility.
Right now, the Co-op is well-positioned to recover from this
part of the cycle. Our strong balance sheet gives us options to
consider how we create more value. It also benefits all farmers,
as we know that the banks assess our individual farming business
risks together with Fonterra’s balance sheet and performance
when considering their overall exposure to the sector.
Ultimately, strong performance is the best way we can support
our farmers through this difficult period. That remains our focus
for the year ahead.
We need to set a target that
is meaningful and brings us
into line with our international
competitors – many of which
have already set a target.
Peter McBride
Chair of Board
07
Full year dividend
50c
per share and unit
Total cash return
$9.22
per share backed kgMS
08
Letter
from CEO
Miles Hurrell
– Chief Executive Officer
Kia ora,
I’m proud to have led
a dedicated team who have
delivered a strong result for
your Co-op.
Our reported profit after tax is $1.6 billion, up 170% on last year,
and our return on capital is 12.4%, up from 6.8%.
This has put us in the position to pay a full year dividend of 50 cents
per share, including the interim dividend of 10 cents per share.
Throughout FY23 we also made progress on several key strategic
initiatives. We implemented our new Flexible Shareholding capital
structure, completed divestment of our China Farms business
and Chilean business, Soprole, and launched our new corporate
ventures arm, provisionally named Nutrition Science Solutions.
As a result of the successful divestment of Soprole, we were able to
return tax-free 50 cents per share to shareholders and unit holders.
These milestones were several years in the making and I’m proud
the team has delivered upon the commitments we made to our
shareholders.
I also acknowledge that these achievements have been against
a backdrop of a falling Farmgate Milk Price across the season.
We work hard every day to maximise total shareholder returns.
We ended the 2022/23 season with a final Farmgate Milk Price
of $8.22 per kgMS. When combined with our strong dividend and
capital return, our total cash return to farmer shareholders was
$9.22 per share backed kgMS.
Strong earnings performance
FY23 was a volatile year for global economies and commodity
markets as the world continued to recover from COVID-19.
There was strong demand for protein products, in particular cheese
and caseinates, at the same time as demand for milk powders
softened. This resulted in historic high price relativities across the year.
We captured the high protein prices in our Ingredients channel,
and these have been a strong driver of our earnings performance
for the year.
To optimise our Farmgate Milk Price, we moved milk into higher
performing reference product categories, such as skim milk powder
and cream, where possible.
However, we were required to reduce the forecast Farmgate Milk
Price across the season as demand for whole milk powder from key
importing regions, in particular China, continued to soften.
We recognised the impact the reduced forecast Farmgate Milk
Price has on farm profitability, particularly at a time when farmers
are facing higher input costs, and utilised our strong balance sheet
to favourably adjust the Advance Rate Schedule, which meant that
we were able to get cash to farmers sooner.
Progress on strategy
Despite economic headwinds, we’ve made good progress on
strategic initiatives this year that will help to set us up for the future.
A sustainable supply of New Zealand milk is fundamental to
the future prosperity of the Co-op, so that we can maintain
efficient operations and continue to meet customer demand for
New Zealand milk at scale.
Our new Flexible Shareholding capital structure, which was
implemented in March, supports a sustainable milk supply and
stable balance sheet by making it easier for farmers to join and
remain with the Co-op.
09
One of the benefits of being part of the Co-op is having access to
the advice and services provided through Farm Source.
The team is working alongside farmers to provide tools that
support more efficient farming businesses and help to meet the
changing needs of both regulators and our customers.
An important focus for the team right now is introducing a
Scope 3, or on-farm emissions intensity target, which we will
announce before the end of calendar year 2023.
Achieving the target will be a collective effort, with incremental
efficiency gains enabled by the tools made available by the Co-op
and wider industry partners.
We’ve made a strategic choice to be a leader in dairy innovation
and science, with innovation expected to play an important role
in achieving the target by reducing methane production on-farm.
We are working with partners to invest in potential solutions.
Looking to the future, our innovation portfolio of activity is also
exploring potential new revenue streams for the Co-op that utilise
either our milk or our expertise.
This year, we’ve established Vivici, our joint venture with Royal
DSM, which is exploring commercial opportunities in fermentation
derived ingredients.
These ingredients could be used to extend our farmers’ milk into
products, categories, and markets which we do not currently sell
into, as well as earn the Co-op a return on the commercialisation
of our IP.
We’ve also launched our corporate ventures arm, Nutrition Science
Solution (NSS), which made its first strategic investment in the
form of a minority stake in Pendulum Inc, a biotech company
specialising in metabolic health.
NSS is a long-term play for the Co-op, that will seek to partner with
and invest in global start-ups in the nutrition science category.
Driving efficiencies across the Co-op
Outlook for FY24 and beyond
When pursuing these opportunities, we’re assessing them against
other investment opportunities for our farmers’ capital.
Our new resource allocation framework demonstrates how we
think about delivering value. It shows how we aim to allocate
farmers’ milk to the products and channels where we believe it
will earn the highest risk-adjusted returns.
The priority use of the Co-op’s capital is maintaining safe,
productive operations. With any capital remaining, we assess
the opportunities available to us and use it either to pay down
debt, for dividends, capital returns, share buybacks, or for growth
opportunities including innovation.
It is as part of this approach to capital management that we
have allocated up to $50 million to an on-market share buyback
programme, which commenced in August 2023.
We’re also taking a close look at our operating expenses to assist
us to stay on track for our short and long-term financial targets.
We have announced a goal of reducing costs across the Co-op by
about $1 billion over the 7 years to 2030. This goal will help offset
higher inflation expectations and we intend to achieve it through
a range of projects that will streamline how we operate.
To track our progress, we have introduced two new efficiency
metrics which we’ll report against every six months.
These are:
1. Opex per kgMS – targeting a 4% cash operating cost
improvement per year to support long-term discipline in our
global overheads.
2. Gross profit per kgMS – targeting a 2% New Zealand cash
manufacturing cost improvement every year to support
efficient New Zealand operations while remaining laser
focused on delivering value.
Looking at FY24, ongoing reduced demand for whole milk powder
from key importing regions continues to impact the outlook for
our Farmgate Milk Price, with our 2023/24 forecast range currently
$6.00 - $7.50 per kgMS, with a midpoint of $6.75.
We are watching market dynamics closely and there are indications
demand for New Zealand milk powders will start to return from
early 2024. Demand for other products, including Foodservice and
our value-added Ingredients, continues to be robust.
The favourable price relativities that we’ve experienced across
FY23 have reduced from their peaks. But we are forecasting
improvement in our Consumer and Foodservice channels as our
markets capture improved margins.
As such, our FY24 forecast earnings range for continuing
operations is 45-60 cents per share.
We acknowledge that across the year, farmers will continue to feel
the pressure from high input costs and a reduced Farmgate Milk
Price. We’ll continue to do all that we can to assist farmers through
this challenging period.
Over the medium to long-term, the outlook for New Zealand dairy
remains positive. Demand for sustainable nutrition is continuing
to grow and by implementing our strategic plans we are well
positioned to meet this demand.
We’re also accelerating plans to extract more value from our
farmers milk by refining our innovation portfolio and investing
in new areas for growth.
I intend to provide an update on our long-term strategy early in
calendar year 2024, which will further detail our market context
and plans to 2030 and beyond.
Miles Hurrell
Chief Executive Officer
Our purpose,
values & goals
Our Purpose
Our Values
Our Principles
Our Co-operative,
Empowering people,
To create goodness,
for generations.
You, me, us together,
Tātou, tātou
Co-operative spirit
Do what’s right
Make it happen
Challenge
boundaries
Our principles are
aligned with the Māori
world view.
Manaakitanga
is the care we show for
others – it strengthens our
relationships and communities.
Kaitiakitanga
is how we care for our
environment today, tomorrow,
and for future generations.
Whanaungatanga
is our Co-operative spirit –
it sits at the heart of our values.
10
We’ve made
key strategic
choices
Key aspirations
for 2030
Group ROC
~9-10%
Operating Profit
40-50%
increase from FY21
50%
absolute reduction in
Scope 1&2 emissions by 2030,
from 2018 baseline
Focus on Aotearoa
New Zealand Milk
Be a leader in
dairy Innovation
& Science
Be a leader in
Sustainability
The resources we rely on
People & Culture
— Approximately 18,000 skilled and motivated employees
led by a board and management team with diverse skills
and experience
— 20,000+ dedicated farmers and farm workers
— Thousands more people in our supply chain
Nature
— 4 million milking cows grazing on 1.5 million hectares
of pastoral land
— Some fertiliser, irrigated water and supplementary animal nutrition
— Energy (27.5PJ) and freshwater (48.7 million cubic metres) for our
manufacturing sites
Relationships
— With farmers, governments and regulators, unions,
employees, customers, iwi and communities
Intellectual Capital
— Our know-how, systems and intellectual property
— Our strong global brands
— 232 granted patents across 25 families of patents
Assets & Infrastructure
— Our portfolio of property, plant and equipment including
right-of-use assets ($6,343 million total net book value)
— 500+ milk collection tankers
— 45 manufacturing sites
Financial
— A strong financial base, capital from our farmer
shareholders, unit holders and debt ($12,774 million average
capital employed)
11
Applying innovation &
our ingenuity to make
& distribute nutrition
We source raw milk
from farmers
How we
create
value
as
ingredients
for
foodservice
& to
consumers
We connect farmers with
markets to maximise the
value from their milk
12
Creating value for stakeholders
Farmers
Customers & consumers
Employees
We create value by
– Delivering a strong total payout (AR-22)
– Reliably collecting their perishable product and providing
efficient access to valuable international markets (AR-04)
– Adding value to their milk through innovation and a
flexible product portfolio (AR-46)
– Providing resilience to operating volatilities such as
price, energy, foreign exchange rates and ocean freight
(BP-34 & 29)
– Providing access to technology and services that help
meet regulatory requirements and continue to improve
farming practices (AR-32)
How we engage
– On an ongoing basis led by our locally based Farm
Source support teams across New Zealand
– At meetings and roadshows, and through our
formal governance processes
We create value by
– Delivering nutrition products that are high-quality,
low carbon and responsibly produced (SR-20)
– Providing access to nutrition products that include
healthier options and linked to sustainable credentials
(SR-22)
– Using responsible procurement to influence our
supply chain (SR-68)
– Responding quickly to changing needs and customer
demand for innovative new products and ingredients
(AR-48)
How we engage
– On an ongoing basis through our account
management teams
– By sharing information through programmes such as
EcoVadis, SEDEX and the CDP
– With our own direct consumers through our service
teams, email and social media, and consumer research
We create value by
– Providing a safe workplace (SR-17)
– Supporting health and wellbeing (SR-16)
– Providing good learning and development
opportunities (SR-12)
– Building an inclusive culture where everyone
contributes and feels supported (SR-11)
How we engage
– On an ongoing basis through our everyday
interactions, regular engagement surveys and
engagement with unions.
Kathryn,
Taranaki
Kiri & Te Kaihou,
Bay of Plenty
Lisa,
Canterbury
13
Society
Investors
Local communities
We create value by
We create value by
We create value by
– Complying with regulatory requirements, including food
– Providing sustainable returns via dividends and
– Providing direct rural and urban employment (SR-83)
safety, marketing and environmental (SR-26)
interest paid (AR-22)
– Reducing our environmental footprint including GHG
– Reducing investment risk through transparency
emissions, water consumption and waste (SR-27)
and independent assessment (SR-67)
– Providing opportunities to invest in New Zealand
dairy nutrition through the Fonterra Shareholders’
Fund
How we engage
– On a regular basis through updates, formal
reporting and meetings coordinated by our
Capital Markets team
– Contributing to the development of policy and
responding to crises (AR-18)
– Collaborating with industry partners to achieve
international commitments Ref. (SR-59)
– Taking a responsible approach to tax (SR-66)
– Supporting international relations through our presence
in global markets (AR-47 & 48)
How we engage
– On an ongoing basis through our Government and
Stakeholders Affairs team
– Through formal consultation on important issues such
as climate change
– Through partnerships on initiatives such as Living Water
with the New Zealand Department of Conservation
– Reducing our environmental footprint (SR-27)
– Supporting communities through natural disasters and crises
such as floods (AR-18)
– Providing access to nutrition through in-school nutrition and
food bank donations (AR-17)
– Strengthening and enhancing our relationships with tangata
whenua (SR-15)
How we engage
– With interested groups, such as NGOs, through collaboration
and consultation on specific topics
– On an ongoing basis with iwi around Aotearoa New Zealand
– Through public events, the media and our own social media
channels
– Through our Community programmes, such as Hapori,
Kickstart Breakfast, Feeding NZ Communities and
supporting the Rural Support Trust
Fonterra Application Centre,
Shenzhen
Annabelle & Rajiv,
Auckland
KickStart Breakfast
Our year in review
August
October
December
February
April
The Co-operative releases
its Sustainable Finance
Framework. This Framework
aligns Fonterra’s funding
strategy with its sustainability
ambitions and reflects the
evolving preferences of lenders
and debt investors
in this area.
Fonterra and Nestlé agree
to sell their Dairy Partners
Americas (DPA) Brazil joint
venture to French dairy
company Lactalis.
Fonterra and MAN Energy
Solutions (MAN ES) enter
a strategic partnership to
reduce CO2 emissions in dairy
production using climate-
friendly heat pump technology
for steam generation.
We revise our 2022/23 season
forecast Farmgate Milk Price
range from
$8.20-$8.80 per kgMS
to $8.00-$8.60 per kgMS.
Announce the conversion of
coal boilers at our Hautapu
site to wood pellets and
installation of a heat pump
at Palmerston North.
Fonterra and Royal DSM
establish new start-up
company, Vivici, to
accelerate development
and commercialisation of
fermentation-derived proteins
with dairy-like properties.
We take another step on
our low carbon transition
with our Waitoa site in the
Waikato planning to install a
30 megawatt wood biomass
boiler to replace a coal boiler.
We also announce the closure
of our small and ageing
Brightwater site near Nelson.
14
June
Acting Chief
Operational
Officer
Anna Palairet
announced.
Launch of new nutrition
science venture arm to
incubate, scale and invest
in ventures in the area
of nutrition science. First
investment announced
with Pendulum.
2022
2023
September
November
January
March
May
July
Announced 2021/22 season
final Farmgate Milk Price of
$9.30 per kgMS.
Fonterra announces sale of its
Chilean Soprole business to
Gloria Foods JORB S.A.
Launch new wellbeing solution
brand, Nutiani, targeting
medical and everyday
wellbeing nutrition markets.
Neil Beaumont
appointed as
new Chief
Financial Officer.
Many co-operative farmers
and their whānau, our
employees and customers
across the North Island of
NZ are impacted by flooding
during the wettest month on
record. Fonterra supports
those impacted throughout
the coming months.
We announce a partnership
with Rural Support Trust
(RST) to support rural
New Zealanders by improving
access to wellbeing and
resilience services for farming
families who are doing it
tough.
Fonterra & Nestlé announce a
new partnership designed to
help reduce New Zealand’s on-
farm emissions, including a
New Zealand first – a drive to
develop a commercially viable
net zero carbon emissions
dairy farm.
We complete the sale of
Chilean Soprole business
to Gloria Foods - JORB S.A.
(Gloria Foods).
Announced an opening
2023/24 season forecast
Farmgate Milk Price of
$7.25 to $8.75 per kgMS,
with a midpoint of $8.00.
Announced an increase in our
Scope 1&2 emissions target,
along with a $790 million
investment, which includes up
to $90 million funding from
Government.
Announce a Profit After Tax of
$546 million, up 50% on same
period last year, in our FY23
Interim Results.
Taranaki dairy farmer
Donna Cram is announced
as the 2023 Fonterra Dairy
Woman of the Year and we
welcome three new First
Foundation Scholars to the
Co-operative.
15
Doing Good
Together
Durham Farm,
Northland
As a co-op we know just how much
good can come from working together,
which is why we’re working with partners
right across the country to make a
meaningful impact. Our Doing Good
Together programme delivers across
three impact pillars to care for people,
the environment and our Co-op for
generations.
Our impact pillars
1
Putting good quality
nutrition in the hands of
those who need it most
2
3
Keeping our
communities strong
Protecting & regenerating
the environment
16
Fred and Ken,
NZ Food Network
5.6
million
KickStart breakfasts
served in 1,400 schools
17
13
million
Dairy serves donated to
communities in New Zealand
22,000 trees
$980K
Partnered with Trees for
Survival to support 22 schools
to nurture 22,000 trees
Donated to community
projects in regional
New Zealand
$650K
$100K
Over $650K donated
to community projects
globally
Farm Source
Charitable
Giving raised
over $100K
2,900 people
More than 2,900 people
attended 16 events with Rural
Support Trust on mental
health & wellbeing
Helping communities
respond to natural disasters
In response to the devastating floods and Cyclone Gabrielle
that hit the North Island earlier this year, Fonterra along
with our strategic partners supported community groups
on the front-line giving assistance to affected Kiwis.
CEO of The New Zealand Food Network (NZFN),
Gavin Findlay, said that with the many people displaced
by the flooding, the donation of quality dairy products
went a long way.
Along with the support we provided communities post the
cyclone, the team also volunteered in the Wairoa region and
got stuck in helping to clean up Tākitimu Marae. This was
followed by cleaning silt beneath houses for whānau that had
no insurance and could not occupy their houses until the silt
had been removed.
The combined Fonterra support was significant and the
Fonterra staff were incredibly proud to show up and offer
support during this time.
Fonterra Emergency Response Team
supporting the clean up at Tākitimu Marae
alongside Waikato Tainui in Wairoa
following Cyclone Gabrielle.
18
“ Once again, our great
partners at Fonterra are
helping us get food to where
it’s needed most. Fonterra’s
quick response to this
emergency shows their
commitment to doing good
together for the sake of our
communities and reinforces
the value of having them on
the NZFN team.”
Gavin Findlay,
CEO New Zealand Food Network
Some of the ways we supported
the community through the
recent natural disasters:
1.3 million
$60,000
Dairy serves to
Auckland, Tairāwhiti,
Hawke’s Bay and
Northland as part
of flooding and
cyclone response
Donated to Community
Foundation flood relief
funds in Hawke’s Bay
and Auckland
$15,000
$40,000
Donated to NZ
Landcare Trust and
Trees That Count to
support remediation
of restoration projects
after the floods
Over $40k donated
through Farm Source
Charitable Giving to the
Hawke’s Bay disaster
relief trust
19
Penelope, Blair, Joe & Billie,
Hawke’s Bay
The Big Feed and our continued commitment
to getting food where it’s needed the most
The Big Feed called to action thousands
of farmers across the country to donate
some of what they produce. In one day,
the event aimed to raise 1 million ‘meals’.
In FY23 Feed Out successfully raised 1 million meals with
Fonterra and their farmers providing just under 430,000 milk
meals towards the cause. The Big Feed event will now occur
annually with a goal of raising 3 million meals on December
14th 2023.
With our partners New Zealand Food Network (NZFN)
and Feed Out, our Feeding New Zealand Communities
programme donated 13 million serves of dairy nutrition
in FY23. We will continue to increase our contribution of
more nutritious dairy goodness more frequently. In FY23
we’ve also had a strong focus on identifying surplus product
across the Fonterra network to donate to the NZFN. This
is complimented by our voluntary agreement to the Kai
Commitment, under which we’re working on a number
of food waste reduction strategies.
Our Hapori programme continues to be present in 10
New Zealand regions, with each regional committee offering
funding and donations of dairy products to local community
groups, schools and marae.
20
“ I’ve seen the faces of our
rangatahi light up with
excitement when they see
they have milk in their kai
boxes. Milk is a product that
our rangatahi know how to
confidently prepare. This is
so helpful as some don’t have
cooked meals to come home
to and must source meals
themselves. We are super
appreciative for the milk
that Fonterra has donated”.
Reconnect – Family Services, Manukau
Community
connection — Farming
Fonterra formed a strategic partnership
with Rural Support Trust in August 2022.
The shared vision for the partnership is to support rural
New Zealanders by improving access to wellbeing and resilience
services for farming families who are doing it tough.
Phase one of the partnership was to gain insight into the value
Rural Support Trust brings and what future opportunities exist
for the Co-op to strengthen and collaborate on. Early insights
indicate we have formed the right community partnership to
support farmers.
As we move into FY24, phase two of the partnership involves
Fonterra supporting Rural Support Trust to thrive and embed
the three opportunities identified to improve overall experience:
1. Grow their operational capability
2. Promote the value they bring to communities
3. Grow their reach in the primary sector
Together with the Rural Support
Trust we have:
• Completed our insights work and identified three
opportunities for FY24.
• Provided funding for the Time Out Tour which supports
rural communities to start the conversation about mental
health – 4,000 people have attended 27 events since
2022 with ambassador Matt Chisholm.
• Donated over $50K to the trusts through our Farm Source
Charitable Giving programme.
• Featured Rural Support Trust in the Fonterra tent at Field
Days to provide rural communities further access.
• Employee Assistance Programme (EAP) available to all
Fonterra farmers, indefinitely.
21
Tana & Rosy,
Waikato
Business
performance
Gross profit from Core Operations per kgMS
$9.85
$7.64
2020
$8.60
$7.52
2021
$9.42
$8.83
$9.21
2022
2023
Actual
Inflation Adjusted
Cash operating expenses per kgMS
$1.39
$1.16
$1.36
$1.18
$1.34
$1.26
$1.39
2020
2021
2022
2023
Actual
Inflation Adjusted
Return on Capital
12.4%
from 6.8%
Profit after tax
$1,577m
from $583m
Earnings per share
95c
from 36c
$9.22
Total Cash Return1
$0.50 $0.50
Capital
Return
Dividend
from 20c
$8.22
Farmgate Milk Price
from $9.30
22
1. Per share backed kgMS
23
In addition, the Co-operative returned
50 cents per share to shareholders
and unit holders in August following
the divestment of Soprole. This
resulted in a total cash return of
$9.22 per share backed kgMS for our
farmer owners.
Commodity product prices that inform the Farmgate Milk
Price (Reference Commodity Products) were down on
average 14.2% compared to the prior season and the main
reason for the $1.08 per kgMS decline in the Farmgate
Milk Price from $9.30 per kgMS last season.
Our profit after tax increased $994 million to $1,577
million. Excluding non-controlling interests this is equivalent
to 95 cents per share, up from 36 cents per share in the
prior period.
Excluding the net gain on divestments, our normalised
profit after tax is up $738 million to $1,329 million,
excluding non-controlling interests this is equivalent to
80 cents per share.
The Co-operative’s operating environment continues
to improve following the pandemic, and with the global
supply chain network stabilising and slowly returning to
normal, our inventory levels at year end have improved.
Our net debt is $3.2 billion, $2.1 billion lower due to
the improved inventory levels, increased earnings and
the sale of Soprole for aggregate proceeds of $1.3 billion
– of which $804 million was returned to shareholders and
unit holders on 18 August 2023.
Our increased earnings combined with the strength of our
balance sheet has put us in a position to pay a full year dividend
of 50 cents per share, comprising of 10 cents per share paid
at interim and a final dividend of 40 cents per share.
Our New Zealand milk collections increased 2 million
kgMS compared with the 2021/22 season due to higher
collections in the latter half of the season as a result
of more favourable weather which was conducive to
stronger pasture growth.
Litres and milk solids collected
17,123
16,876
17,121
16,404
16,317
1,523
2019
1,517
2020
1,539
2021
1,478
2022
1,480
2023
kgMS collected
(million)
Litres collected
(million)
For the year ended 31 July 2023,
our Co-op performed well. We
returned $8.22 on average for
every kilogram of milk solids
our farmer owners supplied us.
Combined with a dividend of
50 cents per share, this means a
total payout of $8.72 per kgMS.
10
Total Payout1
$7.74
$0.20
$7.19
$0.05
$6.35
$7.14
$7.54
$6.35
$9.50
$0.20
$8.72
$0.50
$9.30
$8.22
2019
2020
2021
2022
2023
Farmgate Milk Price
Dividend
1. Refer to the Glossary for definition.
Business performance
Our profit after tax increased
$994 million to $1,577 million.
Profit After Tax1
Increased due to
favourable margins,
particularly for
protein and cheese
products
Increased mainly due to
impairments of our
New Zealand consumer
business and our Asia
brands, of $121 million
and $101 million,
respectively, as well as the
impact of inflationary
pressures
Increased due to a
$349 million (before tax)
gain on sale of Soprole.
The prior year included a
$42 million gain on sale
of GDT
20
(30)
1,259
(344)
307
(218)
24
Increased due
to higher EBIT
and capital gains
tax on the sale
of Soprole
1,577
583
FY22
GROSS
PROFIT
OPERATING
EXPENSES2
GAIN ON
DIVESTMENTS
OTHER
ITEMS
FINANCE
COSTS
TAX
FY23
1. Includes amounts attributable to non-controlling interests.
2. Operating expenses includes $11 million net loss on sale related to Hangu China farm and the sale of GDT.
25
Our normalised profit after tax
increased 125%, or $738 million,
to $1,329 million.
We have normalised $260 million related to the gain on sale
from Soprole, and a $12 million loss relating to the disposal of
Hangu farm in China.
Consistent with our strategy to focus on our New Zealand milk,
we’ve made progress divesting our operations in Chile, Brazil
and China.
In November 2022, we announced the agreement to sell Soprole
to Gloria Foods – JORB S.A – a consumer dairy market leader
in Peru. The divestment was completed on 31 March 2023. The
aggregate proceeds (including pre- settlement dividends) before
tax, hedging and transaction costs were $1.3 billion, of which
$804 million was returned to shareholders and unit holders on
18 August 2023.
In December 2022, Fonterra and Nestlé agreed the sale of DPA
Brazil to French dairy company Lactalis for BRL 700 million. The
proceeds at completion will be subject to closing transaction
adjustments. Fonterra’s 51% share of the DPA Brazil sale
proceeds will be used to repay our share of debt held directly by
DPA Brazil.
Breakdown of Total Group Performance
FOR THE YEAR ENDED
31 JULY 2022
31 JULY 2023
NZD MILLION
Sales volume ('000 MT)
Revenue
Cost of goods sold
Gross profit
Gross margin (%)
Operating expenses
Other2
EBIT
Net finance costs
Tax expense
Profit after tax
CONTINUING
OPERATIONS1
DISCONTINUED
OPERATIONS1
TOTAL GROUP
CONTINUING
OPERATIONS1
DISCONTINUED
OPERATIONS1
TOTAL GROUP
3,318
21,901
(18,992)
2,909
13.3%
(2,065)
102
946
(194)
(131)
621
606
1,524
(1,093)
431
28.3%
(390)
(11)
30
(37)
(31)
(38)
3,924
23,425
(20,085)
3,340
14.3%
(2,455)
91
976
(231)
(162)
583
3,497
24,580
(20,399)
4,181
17.0%
(2,496)
70
1,755
(211)
(303)
1,241
476
1,466
(1,048)
418
28.5%
(303)
348
463
(50)
(77)
336
3,973
26,046
(21,447)
4,599
17.7%
(2,799)
418
2,218
(261)
(380)
1,577
1. Refer to Note 1a and 2c of the FY23 Financial Statements. Comparative information has been re-presented for consistency with the current period.
2. Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss on equity accounted investees.
The sale is subject to several conditions including receipt of
regulatory approvals from competition authorities. The Brazilian
competition regulator released its first report on the proposed
sale in late July 2023. The parties are engaging with authorities to
understand and address the matters raised in relation to limited
parts of the business and expect the sale to be completed within
one year of balance date.
We also finalised our exit of China Farms, following the sale of
our Hangu China farm.
26
Reportable
Segments
Fonterra’s reportable
segments are
presented on a
continuing operations
basis and are Core
Operations and the
two customer-facing
regional business
units, Global Markets
and Greater China as
presented to the right.
Core Operations
Global Markets
Greater China
Total
External sales volume
(‘000 MT)
2,517
10%
980
5%
3,497
5%
Profit after tax contribution from continuing operations
Ingredients
Foodservice
Consumer
Total
$602m
$429m
$133m
$1,164m
$459m
$114m
$13m
$586m
$(12)m
$72m
$50m
$53m
$203m
$241m
$46m
$171m
$(18)m
$(94)m
$(52)m
$(164)m
$1m
$90m
$48m
$137m
$572m
$385m
$284m
$1,241m
$532m
$77m
$11m
$620m
Note: Figures are for the year ended 31 July 2023
Prepared on a continuing operations basis. Comparative information has been restated and re-presented for consistency with the current period.
Financing Costs are allocated based on the average capital employed by each segment and channel. The effective tax rates applied are based on which country the entity, within a segment or channel, generates the income in.
27
Financial Discipline
To assist our long-term discipline and focus
on reducing operating expenses from
continuing operations to around $2 billion,
we have introduced a new efficiency metric
of cash operating expenses per kgMS.
This metric monitors the actual cash cost base
having regard to changing milk volumes, and
adjusts for inflation so underlying efficiency
gains/losses are transparent.
After removing the impact of inflation and
non-cash costs, our operating expenses on a per
kgMS basis increased from $1.34 to $1.39 per
kgMS. The increase mainly reflects increased
staff costs and storage and distribution costs.
To assist our long-term discipline on efficient
New Zealand operations we have introduced a
new efficiency metric of gross profit from Core
Operations per kgMS.
This metric monitors the cash cost base having
regard to changing milk volumes, and adjusts for
inflation so underlying efficiency gains/losses are
transparent. The metric is calculated at a gross
profit level to take into account the net result
of maximising value generated from every milk
solid, which can increase the cost base.
After removing the impact of inflation and non-
cash costs, our gross profit from Core Operations
on a kgMS basis improved from $8.83 to $9.21
per kgMS. The increase reflects favourable
price relativities.
Cash operating expenses per kgMS
$1.39
$1.16
$1.36
$1.18
$1.34
$1.26
$1.39
2020
2021
2022
2023
Actual
Inflation Adjusted
Gross profit from Core
Operations per kgMS
$9.85
$7.64
2020
$9.21
$9.42
$8.83
2022
2023
$8.60
$7.52
2021
Actual
Inflation Adjusted
– Core Operations’ profit after tax was $572 million, an increase
of $532 million on the prior comparable period. A key driver of
Core Operations profit after tax is the relative price difference
between product prices that inform the Farmgate Milk Price,
referred to as Reference Products, and the product prices of
Non-Reference Products.
– Global Markets’ profit after tax increased $77 million to
$385 million, mainly due to the Ingredients channel in-market
profit after tax increasing by $114 million as a result of improved
pricing and higher sales volumes. Performance also improved in
the Foodservice channel as our in-market sales teams were able
to adjust sales prices to compensate for higher input costs. This
was partially offset by impairments in Global Markets’ Consumer
channel of our New Zealand Consumer business and our Asia
brands (Anmum™, Anlene™ and Chesdale™).
– Greater China profit after tax increased $11 million to
$284 million due to the Foodservice channel earnings
increasing by $46 million, reflecting our in-market prices
adjusting to higher input costs. However, this was partially
offset by an impairment in Greater China’s Consumer channel
of our Asia brands.
Looking at our business by product channel:
– Our Ingredients channel profit after tax increased $586 million, or
101%, to $1,164 million, due to continued favourable margins in
our protein and cheese portfolio, as well as higher sales volumes
due to the sell down of additional inventory held at 2022 financial
year-end.
– Our Foodservice channel profit after tax increased $171 million,
or 244%, to $241 million, due to improved gross margins
combined with higher sales volumes.
– Our Consumer channel profit after tax decreased $137 million to
a loss of $164 million, mainly due to impairments of our domestic
New Zealand Consumer business and our Asia brands.
28
Our Total Group free cash flow was $3.9 billion higher than last
year at $3.3 billion, and is before the $804 million capital return
payment to shareholders and unit holders. The increase reflects:
— strong earnings performance resulting in underlying cash
flow from earnings increasing by $0.8 billion,
— an improvement in working capital cash flows of $2.5 billion
over the year, and
— an increase in net cash received from divestments of $0.8 billion,
due to the sale of Soprole during the year, partially offset by an increase
in capital expenditure and other investing cash flows of $0.2 billion.
The strong free cash performance supports the payment of the capital
return of 50 cents per share and a 2023 full year dividend of 50 cents
per share.
Cash Flows
Movements in Free Cash Flow ($ million)
2,469
(166)
815
3,314
(621)
2022
817
EARNINGS
NET WORKING
CAPITAL1
CAPEX & OTHER
DIVESTMENTS
2023
1. Includes amounts owing to suppliers.
Free Cash Flow1 ($ million)
1,433
1,109
668
2019
2020
2021
1. Refer to the Glossary for definition.
Note: Comparative information has been re-presented for consistency with the current period.
(621)
2022
3,314
2023
Balance Sheet
Return on Capital
29
Net debt has decreased by
$2.1 billion reflecting higher
earnings, a reduction in working
capital and the divestment
of Soprole. This enabled an
increase in cash dividends paid
during the year and the capital
return paid in August 2023.
The improvement in the Gearing
Ratio from 42.4% to 28.8%
reflects the lower level of debt
coupled with the higher equity
from our increased earnings.
Debt to EBITDA has improved
from 3.2x to 1.3x due to lower
net debt combined with higher
earnings for the year. Non-
GAAP measures are not subject
to audit unless they are included
in Fonterra’s audited annual
financial statements.
Net Debt1 ($ billion)
6.0
5.2
5.3
4.3
3.2
2019
2020
2021
2022
2023
1 Refer to the Glossary for definition.
Leverage Metrics
4.3
49.5%
3.3
44.2%
3.2
2.7
38.5%
42.4%
1.3
28.8%
2019
2020
2021
2022
2023
Gearing Ratio1 (%)
Debt to EBITDA1 (x)
1 Refer to the Glossary for definition.
Total Group Return on Capital
improved from 6.8% to 12.4%
Our improved return on capital was due to the increase
in our normalised EBIT. We have normalised $349 million
related to the gain on sale from Soprole, as well as
normalising a $12 million loss related to the divestment
of Hangu China farm. The impairments of $248 million,
mainly recognised in our Consumer channel, have not
been normalised.
The impact of the improved EBIT was partially offset by
higher average levels of capital employed compared to the
prior year. This was mainly driven by higher average working
capital levels due to additional inventory carried forward
from the prior year.
Return on Capital
13,419
12,313
12,281
12,356
12,774
12.4%
5.6%
6.6%
6.6%
6.8%
812
879
952
991
1,881
2019
2020
2021
2022
2023
Total Group
normalised EBIT1
($ million)
Average
capital employed1
($ million)
Return on
capital1 (%)
1 Refer to the Glossary for definition.
On-farm
We seek to work with farmers to build the
collective strength of our Co-operative.
The aim is to deliver them maximum
sustainable returns while bringing
value to our customers, consumers
and communities.
We believe Aotearoa New Zealand has the world’s best
milk. Currently, our natural advantages, grass-fed
approach and efficient farming methods combine to make
our dairy farm emissions one third the global average.
The work we’re doing with farmers to reduce emissions
on an intensity basis is an important part of keeping our
Co-op resilient for the future, as we look to ensure there
is continued demand for our farmers’ milk.
This includes supporting them with insights, tools and the
most up-to-date advice, while also working to save them
costs across our network of Farm Source stores.
We want farming in Aotearoa New Zealand to continue
for generations to come, which is why we are committed
to farming in a way that regenerates the environment.
The value we create by processing our farmers’ premium,
sustainable milk into a range of products helps to sustain
regional New Zealand, with almost 50 cents of every dollar
earned by a farmer spent in their local community.
30
William,
Southland
31
The Co-operative Difference is our
framework for enabling our on-farm
practices to support the delivery
of our strategy to protect and grow
the value of our sustainable, nutritious,
New Zealand milk.
This is done by identifying and considering what we need to
do today, what we need to be thinking about for tomorrow and
what we need to consider in the longer term.
The Co-operative Difference is about getting ready for emerging
issues that are either opportunities to create new value and/or
risks to existing value. It provides farmers with the confidence to
invest on farm at a pace that works for them and their business.
The framework is broken down into five performance areas –
Environment, Animals, People & Community, Co-op & Prosperity
and Milk.
Up to 10 cents of a farmer’s milk payment is influenced through
fulfilling the key practices within each of these areas.
The Co-operative Difference has three levels of achievement:
– Te Pūtake – achieving this first step is all about looking after
people, animals, the environment and our Co-op. Farmers who
meet the Te Pūtake requirements receive 7 cents per kgMS for
all milk supplied during the season.
– Te Puku – once Te Pūtake is achieved, the next step is Te Puku,
which is all about milk quality. To achieve Te Puku, a farm must
achieve milk quality excellence for at least 30 days during the
season. Once this has been achieved, farmers receive 3 cents
per kgMS for all milk supplied during the season that meets
the milk quality excellence standard.
– Te Tihi – once Te Puku is achieved, the next step is Te Tihi,
which continues to focus on milk quality. To achieve Te Tihi,
a farm must achieve milk quality excellence for at least 90%
of days supplied in the season. Te Tihi is all about recognition
of our leaders in the Co-operative and does not bring any
additional financial recognition.
Farms that sustainably produce higher quality milk help to
increase the value of all our milk. Getting the best returns
for our farmers’ milk is determined by our ability to access
opportunities, markets, and premium prices.
It is also important that the wider community values our role
and our approach to farming, animal wellbeing and guardianship
of the land, so that dairy farming is seen as an attractive and
respected career choice for future generations. This means
staying at the forefront of issues such as quality, safety and
sustainability. That’s what The Co-operative Difference is
all about.
Te Tihi -
The summit of the mountain
718 up from
638
Te Puku -
The mid point
4,522
5,038 up from
5,038
Te Pūtake -
The start of the journey
William,
Southland
1,383 up from
1,155
Supporting farmers
through Farm Source
As the farmer-facing part of the Co-op,
Farm Source plays an important role in
getting alongside farmers to help them
continue to lead the way in sustainable,
efficient dairy farming.
The team is guided by what farmers have said they’re looking
for from their Co-op, grouped into four key areas:
– Co-operative leadership: including advocating on behalf of
farmers and helping to foster a sense of connection and
pride in the Co-op among farmers, our rural communities
and the wider public.
– My Co-operative and business: engaging with farmers in a
way that suits their individual business needs so that they
get the support they need, in a way that works for them.
– Support to get better: working alongside farmers to further
improve the efficiency and productivity of their farming
businesses, including to meet on-farm standards and
regulations of today and prepare for any that may be coming
in the future so that we’re continuing to build resilience in
the Co-op.
– Products and solutions: providing products and solutions
to help drive improvements, with a consistent and
welcoming experience when farmers interact with the Farm
Source team – whether in store or on farm – and offering
competitive prices.
One of the top priorities for our Farm Source retail business is
to reduce costs for farmers, including mitigating inflationary
impacts as much as we can.
32
The team looks to leverage the Co-op’s purchasing power and
partnerships to deliver products and services at competitive
prices. A practical example is the partnership we announced with
2degrees in November 2022, which offers farmers market leading
rates on plans built to suit their telecommunication needs.
Farm Source offers a number of other market-leading offers –
from up to 21 cents off a litre at Mobil for Fonterra suppliers,
exclusive Power deals through Genesis, through to trade prices
at Bunnings – and enables all Farm Source account holders to
earn and redeem Farm Source Reward Dollars, contributing to
further savings. We also play a critical role in helping to ensure
farmers have a reliable supply of key farm inputs, as recently
demonstrated when the country experienced supply shortages
during COVID-19.
On top of the network of more than 60 stores across the country,
Farm Source also brings market leading innovation like Allflex
animal collars or Effluex to farmers. This is supported by industry-
leading tools and services that are delivered in a personalised
way to farmers.
In July 2023 we confirmed changes to our Farm Source team
aimed at improving how the Co-op supports farmers today and
into the future. It followed a genuine consultation process, with
the original proposal changing based on feedback from our
people. We also took onboard views shared by farmers during
this time.
The focus is on three key areas – improving our local support,
improving our phone and digital tools to make things easier, and
endeavouring to see that we are all doing everything we can to
maintain, and grow, sustainable milk supply for the Co-op.
The new structure came into effect in August and we’ve been
working to ensure farmers know how Farm Source has evolved
and why.
Karlson,
Bay of Plenty
33
Adjusting our Advance Rate
Reducing on-farm emissions
In May we announced that we would start the 2023/24 season
with a new Advance Rate guideline. The key driver for this
decision was to respond to the pressure farmers had been under,
particularly in terms of cashflow.
The opening Advance Rate is now set at 75%, up from 65%, and
steps up to 80% in March paid April, rather than May paid June.
This helps gets cash to farmers sooner, and it is a change we were
able to make due to our strong balance sheet.
Our intent is to use this new guideline for future seasons, starting
with 2023/24.
When setting the Advance Rate, we balance getting farmers
as much of their milk payment as early as possible, while also
maintaining a strong balance sheet and having the necessary
cashflow to operate day-to-day.
As a result of this approach, we will need to review our Farmgate
Milk Price more frequently. As another way to get cash to farmers
sooner, we announced in May 2023 that we were bringing forward
the payment to shareholders of the capital return of 50 cents per
share related to the sale of Soprole from October to August 2023.
Throughout the year, we’ve had conversations with our farmers
about the need for Fonterra to introduce a Scope 3, or on-farm,
emissions reduction target.
We held in person and online meetings across the country to
hear farmers’ views. We also released a comprehensive on-farm
emissions booklet in April which was designed to help with
those conversations as well as being a practical how-to guide.
We initially indicated that we would announce the target in
the middle of 2023. However, timing is important, and we
acknowledge that farmers have been under a lot of pressure
right now.
With this in mind, we decided to delay introducing a Scope 3
target by a few months. We now expect to announce our target
before the end of the calendar year.
There is no one solution to reducing on-farm emissions. It will
require a combination of best farming practices as well as new
technology and innovation to reduce methane, which is one
of the biggest challenges the dairy industry faces, while also
representing a significant opportunity for us. We’re investing in
our own research and development as well as partnering with
others to try and find breakthroughs that will further support
farmers. Two examples are included on the next page.
Making it easier for farmers to join & stay
with the Co-op
In March, we implemented our new Flexible Shareholding capital
structure, which makes it easier for new farmers to join our Co-op
and for existing farmers to remain, by allowing greater flexibility in
the level of investment required.
We believe the changes help us make further progress on our
strategy by supporting a sustainable milk supply and stable
balance sheet, while also protecting farmer ownership and control.
Under the new structure, farmers can now hold up to 4x their milk
supply in shares or a minimum of 33% of their supply.
In addition, exit provisions were extended and more types of
farmers can be part of our Co-op. Sharemilkers, contract milkers
and farm lessors can apply to become what we’ve termed
Associated Shareholders and Secondary Shareholders. Meanwhile,
ceased farmers are able to transfer shares to their relatives and
related parties, who are known as Permitted Transferees.
Under the new structure,
farmers can now hold up
to 4x their milk supply in
shares or a minimum of
33% of their supply.
34
Exploring solutions
to reduce methane
KowbuchaTM
AgriZeroNZ
One potential solution is our own
development, KowbuchaTM. KowbuchaTM
is probiotics derived from Fonterra’s
large bacterial culture collection that
are designed to reduce the methane
produced by cows.
KowbuchaTM has produced promising results with some
trials showing up to a 20% reduction in methane without
compromising productivity, but further work is needed to
validate these effects.
As well as the potential to produce a methane reduction
solution for use on farm, the KowbuchaTM venture could generate
commercial returns for the Co-op. This is why we are creating a
more formal structure around its potential commercialisation –
starting with the appointment of a CEO in early July 2023.
Fonterra appointed Dr Ben Russell to lead the development
of our KowbuchaTM business venture. He will focus on
establishing the KowbuchaTM business through further
development, validation, and commercialisation of Fonterra’s
world-leading probiotic technology both within New Zealand
and internationally.
We are also investing in partnership
with other agricultural companies
and Government.
AgriZeroNZ is an investment fund established between
Government and major agribusiness companies to make sure
New Zealand pasture-based farmers have equitable access to
affordable and effective tools and technology to reduce their
agricultural emissions, while maintaining efficiency, production
and profitability. Fonterra will contribute up to $50 million
over four years.
Since launching in February, AgriZeroNZ has announced
investments of:
– $4 million in a methane measurement facility
that will be constructed at the Massey University
dairy research farm in Palmerston North and will
house 12 new cattle respiration chambers and
associated infrastructure.
– $1.8 million for a stake in Ruminant Biotech, a
New Zealand-based start-up that is developing a
slow-release, biodegradable methane-inhibiting
bolus for livestock.
– $2.5 million to support the continuation of research
underway in New Zealand toward developing a
methane vaccine and methane inhibitor for use
in livestock.
35
Our industry
leading farmers
Fonterra Dairy Woman
of The Year Donna Cram
Young Farmer
of The Year Emma Poole
Dairy Industry Awards
Co-op farmers continued their strong history in
the New Zealand Dairy Industry Awards, winning
all three 2023 national titles at a gala dinner in
Auckland in May.
Hayden and Bridget Goble from Taranaki won the
2023 New Zealand Share Farmer of the Year title,
Canterbury/North Otago’s Jack Symes became the
2023 New Zealand Dairy Manager of the Year and
Bill Hamilton from Northland was announced the
2023 New Zealand Dairy Trainee of the Year.
Hayden and Bridget are 20% VO equity partners
together with Bridget Mooney, Kevin Goble
and Diane Goble on their 200ha, 565-cow New
Plymouth property.
Jack is farm manager on Judy and Brian Symes’
160ha, 630-cow property at Southbridge and Bill
is farm assistant on Richard and Sharon Booth’s
395-cow, 174ha property at Titoki, employed by
Andrew and Vicky Booth.
Taranaki farmer Donna Cram won the 2023 Fonterra
Dairy Woman of the Year award.
Facilitated by Dairy Women’s Network, the award
recognises an outstanding woman who has
contributed to the dairy sector with passion, drive,
innovation and leadership and no other award in
New Zealand specifically celebrates the capability
and success of women in the dairy industry.
Donna is a fourth-generation dairy farmer and
influences locally and nationally through a large range
of positions. She is well known within our Co-op and
is an outstanding ambassador for the industry. Her
leadership qualities, community engagement and
commitment to sustainability represent some of the
best attributes of Kiwi dairy farmers.
Along with the award Donna received a scholarship
from Fonterra of up to $20,000 for an approved
and personally chosen development programme,
or professional/business coaching and/or learning
experience.
Waikato/Bay of Plenty Young Farmer and Co-op
supplier Emma Poole was “absolutely buzzing”
after being named the 2023 FMG Young Farmer
of the Year in early July.
Emma is the contest’s first-ever female champion
and secured the win following three days of gruelling
challenges against six other Grand Finalists.
Contestants’ farming skills and general knowledge
were put to the test with tasks that included repairing
farm machinery, creating a hydroponic system and
an intense race-style challenge with multiple tasks
that saw points awarded for both skill and speed.
As Emma accepted the award, Tim Dangen, her
brother, mentor and last year’s FMG Young Farmer
of the Year was there to congratulate her as she said
“we’ve finally knocked the grass ceiling off the roof”.
36
Legend
Farming entities that achieved
Grade Free for at least the last 10 seasons
Abacus Dairy Limited
Alton Pastures Limited
Milkwell Limited
MR & TJ Frost Ltd
Ashgrove Dairy Farms Limited
Owhango Farms Limited
Black & White
Cow Company Limited
C E & D L Rogers
C J & C J McKenzie Limited
Caskey Farms
Farmer Fred Ltd
Fowler Family Prosperity Trust
Glen Eden Otago Ltd
Golden Mile Farms Limited
Hillcrest at Fairfax Ltd
J & LM Van Burgsteden
Kainui Peatlands Ltd
Kemra Farm Ltd
P H & W F Iorns
Pharlee Trust
R & S Singh
R S & R D Gordon
Rainbowcreek Farms Limited
S & S Iorns
Schorn Trust
T D & J A Rhind
The D & A Roberts Family Trust
W J & J G Pile Family Trust
Waiotu Farms Ltd
Whenuakura Farm Limited
Willcox Farms Ltd
Axtens Farm,
Bay of Plenty
Honour roll for
on-farm excellence
Thank you to all our farmers who have worked hard in
the 2022/23 season to provide safe, high-quality milk.
In addition to the honour roll, we acknowledge the
efforts of all our farmers for their commitment to on-
farm excellence and producing the best possible milk.
Te Tihi
Farming entities that achieved
The Co-operative Difference Te Tihi (Level 3)
A–C
46 South Limited
A T & J L Hughes Trust
4RJ Aguilar Dairy Limited
AAEJHM Family Trust
4Smiths Limited
99 South Limited
A & A Renes Limited
A & H Ahlers Limited
A & J Mitchell Partnership
A & M Lopes Limited
A & R Gibson Trusts
Partnership
A B Lime Limited
A H Baxter Limited
A J & Est L R Arnet
A J & P T Bryant
A J & V A D McLellan
AAR Farming
Aaron and Marcia Flay
Partnership
Aaron Brown
Aaron Gopperth Trust
AB Dairies Limited
Abbott Trusts Partnership
ABR Family Trust
ABR Farms Limited
ACG Enterprises Limited
ADDR Limited
Aerodrome Farm Limited
Aghern Holdings Limited
A J Porteous No. 2 Trust
Agromilk Limited
A L & S E Hunter Family Trust
AGVenture Farms Limited
A L & W A Mullan
Ahipaipa Farms Limited
A Mackinnon & A L Aitchison
Ahipene Farming Limited
A P Jones & J G Craw
Ahol Trust
Alley Farms Limited
B J & J R Goodwin
Birds Meadow Limited
Bullot Family Trust
Allison Family Farms Limited
B J & S R Morell
Biz-E Farming Limited
Burnell Farms Limited
37
Altura Dairy
Amtink Limited
B L & D J Haylock
B M & J M Durcan
Andrew Marshall Family Trust
B M & R M Sarten
BJ Caird Limited
BJ & TJ Bennett Limited
Burness Partnership
BJ & TM Verryt Limited
Burtlea Limited
Burton Farm Trust
Andrew Phipps
Aotearoa Kaitiaki Limited T/A
Te Mania Farm
AP & TM Davis T/A
Bushvalley Farm
AQA Agriculture
Aramaunga Farms Limited
Ardendale Farm Trust
Ardmore Farm Trust
Armer Farms (N I) Limited
Arrow Dairy Limited
Ashton Farming Limited
Ashvale Jerseys Limited
Aston Green Limited
AT Mills Partnership
Avon Downs Limited
B C & H J McLellan
B C McIntyre
B D & K M Sterritt
B D & M R Gray Trust
Partnership
B D Hiestand Trust & V J
Hiestand Trust
B F & R E Sanford Limited
B F & S J Gordon
B H & L J Bourne
B N & E L Simmons
B R & S P Churstain
B W & S J Phillips
B W E Binnie
BAA Family Trust
Bailetresna Limited
Bailey Partnership
Blandyco Trusts Partnership
Bushmills Trust
Blimar Dairies Limited
BLL Farm Trust
Bluegum Farms Ltd
BW Dairy Limited
Byrne Tribe Limited
C & A Dairies Limited
BM & GI Watson Limited
C & R Ashcroft Partnership
Bobcat Trust
Bolton Walker Limited
C & R M Moir
C A & E A Brown
Baldwin & Bourke Limited
Bonezco Farms Limited
C A Rowe
Barcia Dairies Limited
Bosbry Trust
C and J Piggott Limited
Barnscroft Dairy Limited
Braebid Limited
Barnsdale Farms 2014 Limited
Brasen Trust
Barridge Farms
Baucke Family Trust
Beckett Family Trust
Brats Farms Limited
Braylor Farms Limited
Brenick Limited
Beechbank Dairies Limited
Brittany Trust Partnership
Beith Farm Limited
Brohen Farms Limited
Belbrook Farming Limited
Brok Farming Limited
Belfield Dairies Limited
Brookdale Dairy Farm Limited
Bell Family Farms Limited
Brooklyn Dairy Farm Limited
Belmac Enterprises Limited
Broughshane Limited
Ben Callum Investments
Limited
Benmore Downs Limited
Berry Dairy Farming Limited
Beyond The Gate Limited
BH Growth Limited
Bruski Farms 2001 Limited
Bryant Silviculture Limited
Brymac Farms Limited
BS Farming Limited
Bula Dairy Farming Limited
C D Farms
C G & J A Venn
C H Land Limited
C J & M D Blackwell Family
Trust
C J & S J Coll Family Trust
C J & V K Taylor
C J Neustroski & P T Bucknell
C J Smyth & O R H Malone
C M Tanner
C P Baldwin & M A Bourke
C Porter & O Mitchell-Bettles
C.J. & N.A. Williams Limited
Caiseal Partnership
Calcium Dairies Limited
Calsi Farms Limited
Camaro Trust
Cambourn Farm Limited
Avery Partnership (Te Hawera)
Beckett Farm Limited
Brentworth Dairying Limited
Axtens Farm,
Bay of Plenty
A S & G L Noble
Alderbrook Farms Limited
B J & D A Verryt Family Trust
Alkington Limited
Collingwood Farm Trust
D J & J A Veen
Delarbe Farm Limited
Ealing Dairies Limited
Fonterra -Te Rapa Farm
38
D J & L J McDrury
D J & N J Williams
D J Brook
D J Conlan
D J Wohlers Family Trust
D L & P Wilson
D M & C E L Turnbull
D M & D L Bourke
D M & J C Brogden
D M J & A J U Smith
D M J S Trust
D P & T M Stephens
D R & E M Henman
D R & J E Gilchrist
D R & L M Locke Ltd
D S & R R Carey
D W & M E Kidd
D.C Clark Limited
DA & ER Reid
Daisy Dairying Ltd
Dalmm Dairy Limited
Daniel & Tracey Limited
Te Tihi
C–G
Cameron McLellan
Cameron Richards Family Trust
Cantley Developments
Limited No 1
Cantley Developments Ltd T/A
Sunrise Properties
Caskey Farms
Cavafarm Trust
Ceamour Farms Limited
Ceylandia Dairies Limited
Chelu Limited
Childs Creek Limited
Chisnall Farms Limited
Churi Farms Partnership
Claremont Trusts Partnership
Clark & Everitt Partnership
Clarke Farms (2016) Ltd
Clarknic Farms
Clemcorp Ltd
Clover Bell Limited
Clutha Lea Ltd
CMP Dairies Limited
Colhaven Limited
Collingwood Dairy Limited
Collins & Murphy Farming
Limited
Contra Trusts
Copeland Farming 2012 Ltd
Cordyline Farms Limited
Cornik Farms Limited
Corona Farms Ltd
Cotlands Ltd
Countrywise Limited
Cowley Ltd
CPX Limited
CQ Farming Limited
Craigower Farms Ltd
CRB Farming Limited
Creekside Pastures Ltd
Cressey Dairies Ltd
Crossipol Ltd
Croydon Agri Ltd
Croydon Dairy Limited
Cummings Family Trust
Cupsville Limited
Cutting Edge Dairies Limited
D & A Cooper Limited
D & D Alexander Trust
D & D M Coupe Trust
D & E Beckett Limited
D & M Earl Limited
D & T Farming Limited
D B & N L Hinz Partnership
D B & T A Wyber
D D & D M Galletly
Denis J Crookenden &
Bronwyn F Bax
Dennley Farms Ltd
Des Conlan Trust
DG Farming Limited
Diamond Family Trust
Dillon & Co 2020 Limited
DJ & AJ Williams Ltd
DJAS Partnership
DNR Farms
Dobbie Farms Ltd
East Chatton Farms Limited
Friendly Cow Farms Limited
Ebbett Agri Partnership
Full Moon Farming
Edale Farms Ltd
G & L Farming Limited
Edge Holdings Limited
G & M Moore Partnership
Elamar Trust
G & P Russenberger
Est of M F Blake & M Blake
G & R Ward Family Trust
Estate E A Bonner
Estate John Harold & Muriel
Mary Watt
Estate M J Abbott
Estate of T D & N M Miller
G & T Sloper Limited
G A & J M Hall Limited
G A & K T Lynch
G A & W A Knight
G A W & M C Van Rossum
G B & D G Hodges Trust
G Bearman & W Reid
Partnership
G D & C J Alexander
Dogterom Farming Limited
Estee Holdings Limited
Donald Pearson Farm Ltd
Evans Partners Ltd
Doneve Agriculture Limited
Excel Farming Limited
Donnelly Trust
Eyretonlea Partnership
Double A Oaks Limited
F A & R C M Smits Ltd
G G Green Acres Limited
DPN Farming
Fairfax Stonehouse Farm Ltd
G G Ring
DR & PJ Hannah Ltd
Falcon Farms Trust
Draw Farming Limited
Farm Partners Limited
Farmer Fred Ltd
G I Norgate
G J & E L Pinny
G J Borst
Drought & Kalin Family Trusts
Partnership
Drumderg Farm Ltd
Drumoak Trust
Farnley Tyas (2018) Limited
G K S Cows Limited
Faull Contracting Limited
Faybo Limited
G L & G F Bell
G L & R L Burr
Feenstra & Bouwmeester Trust
G M & J M Zydenbos
Fern Flat Limited
G P & D J Wolvers Family Trust
Fernley Farm Limited
G P S 2007 Ltd
Firdale Farms Limited
G R & K L Lovelock
Flaxwood Farm
Flaxwood South
G R & L M Heywood
G S & L J Rowe
Fleming Family Trust
Galloway Enterprises Ltd
Flo New Zealand Limited
Gambles Farm Ltd
Danz Farm Limited Partnership
Dryden Farming Limited
David & Corina Youle Trust
Drylands Trust
David & Lynley Ecclestone
Drysdale Holdings Ltd
David Leng
DB & MJ Kalma Ltd
DDB Dairy Enterprises Limited
Debnar Farms Limited
Deebury Pastoral Partnership
E A White Ltd
E C Briden & Sons Ltd
E J & A M Kiser
E L Mitchell
E O'Brien
E T De La Rue
Hitchcox Farming Ltd
J G Cochrane
Hoe-o-Tainui Farms Ltd
J H & H R Smyth
Jomar Farm Ltd
Joshua Lyon
Kelly Farming Limited
Kelvin Vickers Family Trust
39
Hogsback Limited
Hollands Farm Limited
J J & T A Hickman Family
Trust Partnership
J J Bailey
J L & K S Gwerder Family Trust
JS & KJ Lorimer trading as
Laurel Hill Farm
Juffermans Dairy Company Ltd
JP & DJ Hurley Partnership
Kemra Farm Ltd
Te Tihi
G–L
Greenhart Limited
Greg Dawson
Greg Low Limited
Gregory Farms Ltd
GST Investments Limited
Holmleigh Trust Partnership
Guthrie Farms Limited
Hororata Dairy Farm Limited
Guyon Farm Limited
Huntly Road Dairies Ltd
Gwen-May Trust
Hwitan Tune Holdings Ltd
Gavin Lozell Farming Limited
GB Dairies Partnership
GD & CJ Alexander Ltd
Gema J Limited
Geordie Farms Limited
Gibbs G Trust
Gillett Farms Ltd
GKW Farms Ltd
Gladvale Farms Limited
Glanton Holdings Limited
Glenarne Limited
Glenkerry Farm Limited
Glennevis Dairies Ltd
GM & AM Woolley
H E Argyle and Estate of L A
Argyle
H J & A M Van Hout
H L & J E Wallace
H Q Partnership
H S Phillips
Hahn Trading Limited
Haket Trust
Hamilton & Keene
Sharemilking Ltd
Hammens Limited
Hann Bros
Harakeke Dairy Ltd Partnership
Haswell Farm Limited
Haumako Farm Limited
Golden Mile Farms Limited
Haurere Farms Ltd
I G Haigh
I H & D J Bryant
I J & H E Mitchell
I J Sutherland Partnership
Ingram Farming (2003) Limited
Intensive Agriculture Ltd
Inveraray Dairy Limited
Ivy Plains Ltd
J & C Gray Family Trust
J & E Hansen
J & L Delgado
J & O Sergiychuk
J & P S Malcolm
J & R Ferguson Ltd
J & S Belton
Gordon Dale Farms (2006) Ltd
Heartland Holdings (2008) Ltd
J & S Nicholas Limited
GPN Holdings Ltd
Graejo Trust Partnership
Granite Farms Ltd
Grantley Trust
Green Pastures Dairy Ltd
Green Sky Dairies Limited
Greenan Farms Limited
Heavenly Moos Limited
Henderson Partnership Farm
Henmar Trust
Heywood Trust
Highland Downs Limited
Hill Biddles Limited
Hillcrest at Fairfax Ltd
J A & E Fraser
J A Rhind
J C Rossiter
J E & A E Watson
J E & D L Morell
J G & J M Wright
J G & L M Mills
J M Mellow
Jurassic Farms Ltd
J McKay & A Brown
K A & N J Riddington Ltd
J P & A M McEwan Ltd
K G Reeve
J S Dairy Limited
J Turner Limited
J W & A M Steeghs
J W & T L McElligott
K J & H A Dravitzki
K J & H Chalmers Ltd
K J & L M Goodwin
K J & S R Crowley
Jackson Partnership Ltd
K J Thompson & M Sataka
Jacob Abbott
Jacob Olsson
K R Vollebregt
K W & D J Hall
Jaeger Dairies Limited
K W & S H Smart Trust
James Lyttle
K W Laing
Janssen & Sons Limited
K&M C Farms Limited
Jareem Trust
Kahikatea Dairy Ltd
Kerr Road Dairies Limited
Kes Farming Limited
Kevin Fleming Ltd
Keystone Dairies Limited
Kiekie Farms Ltd
Kilfinan Farm Ltd
Kilkenny Farm Ltd
Kilkerran Farm Ltd
Killinchy Dairies Limited
Kinkora Farm Ltd
Kirson Farms Ltd
KJ&HL Uhlenberg(Waitui)
Fam Tr. P'Ship
KM & BM Muller
Knapdale Farms Ltd
Kohi Partnership
Kohi Rose Ltd
Jareem Trust Partnership
Kainui Farms Limited
Kohinoor Farms Ltd
Jascas Trust
Jaska Farm Trust
Jaydee Farm Limited
JBHILLS Limited
JBT Farming Limited
JC Beattie Trust
JCB Farms Limited
Kaitiaki Whenua Farming
Limited
Kaiwhio Dairies Limited
Partnership
Kaja Limited
Kanuka Terrace Limited
Kapuka Investments Limited
Karl Robert Peace
JCDAF Dairy Farms Limited
Kavanagh Trust Partnership
Jersey Girl Ltd
Jerzey Rock Farm Ltd
JF & LM Le Fleming Family
Trust
Keelinn Farms Limited
Keitra Farms Limited
Kelbretar Trusts Partnership
Koning Dairies Limited
Koroa Group Limited
Korotawa Limited
Kuklinski Family Trusts
Partnership
Kuriger Farms
Kyle Farm (2005) Limited
Kywaybre Farms Ltd
L & M Wild River Limited
L B & S A Udy
L D & R M Barry
L E Hill
Te Tihi
L–O
L G & H R Miller
L H & K M Bonnar
L J Hodges
L M Farms
L P & C L McClintock Limited
L P & I Bylsma
L Ross & A Parry
L S & K A Phipps
L.J. Fleming & Co. Limited
LA Farms Limited
Lakeside Farm (2010) Ltd
Lamb Dairy Limited
Landcorp Farming Limited
Lavender Dairies limited
Lawson Farms
LB Dairies Limited
Le Emari Trust T/A
Willowbridge Dairies
Le Prou Family Trust
Leona Green
Leondale Trust
Lepperton Farms 2021 Limited
Lethol Farms Ltd No.1
Lillburn Valley Dairies Ltd
Lisdale Dairies Limited
Little Mate 88 Farming
Company Limited
Livcon Farms Ltd
Lizlyn Dairies Limited
Lobblinn Farms Limited
Lochbuie Limited
M F & D C Robinson Trust
Partnership
M J & D R McFetridge
M J & M J Manley
M J Adams Trust
M J Robertson
M L & K I Clark Family Trust
M P & V M J Joyce Trusts P/Ship
M R & K J Luke Ltd
M S & P M Davey
M S Dobson
M T & J Torrie
Lochhead Holdings Limited
Maandonks Farm Limited
Lochiel Sharemilking Limited
Maandonks Pastoral Limited
Lochlea Partnership
Lockinge Farms Ltd
Macarm Farms Ltd
Macedonian Properties Limited
LR and SJ Hammond Limited
Macken Farm Ltd
Ludell Limited
MacWilliams Dairies Limited
Ludimac Dairying Ltd
Mahunga Farm Limited
Luscombe Partnership
Majestech Farms Limited
Lynbrook Farm Limited
Majuba Farms Ltd
Lynwood Dairies Limited
Maken Milk Ltd
M & A Bulanhagui Limited
Malandra Downs Limited
M & A Schrader Family Trust
Manaki Dairy Farms Limited
M & D Padrutt Family Trust
Mangakiri Ltd
M & G Askin Family Trust
Mangaroa Farms
M & M Kidd Partnership
Mangatoki Partnership
Legendairy Contracting Ltd
M A Watt Family Trust
Mangawhiri Farms Ltd
Legrayle Farm Limited
Lenek Farms Limited
Leningrad Farm Ltd
Lenssen Farming Partnership
M C & J P Fisher
M D Hammond
Mangin Dairying Ltd
Manuka Downs Farm Limited
M E Hunt & Son Ltd
Mardell Graham Limited
Mark & Nerida Dodge Ltd
Marshlie Partnership
Martindale Trust
Marua Partnership
Mary Rose Trust
Milk Drops Ltd
Milk Power Ltd
Milk Tap Limited
Milka Dairies Limited
Mattajude Family Trust
Milkin It 2020 Limited
Maude Peak Farm Trust
Mavora Farms Ltd
Maxlands Farms Limited
McBeth Dairy Ltd
McCheesey Farming Limited
McClan Ltd
McConnell Ag Ltd
McCoote Farms Limited
McCullough Family 2008 Ltd
McCullough Orakau Farm
Trusts Partnership
McDonnell Farming Company
(Ohau) Ltd
McDonnell Farming Limited
McKay Creek Farms Limited
McKinnon Dairy Limited
McSwag Limited
Mehroop Trading Limited
Melgan Ltd
Melrose Dairy Ltd
Merivale Partnership
Merrybent Limited
MG Farms Limited
Michael Clark Ltd
Michael Kiser
Mid Island Farms Limited
Miedema Farms Limited
Milestone Trust
Milky Whey Enterprises
Limited
Milldale Farm No 2 Limited
Mills Road Estate Limited
Minus 1 Trust
Mish (2012) Ltd
MJ & CD Beattie
MJ Henderson Farming Limited
MJG Limited
MKJ Farms Limited
Mokka Limited
Molehill Farm Ltd
Monte Vista Farms
Moo Juice Limited
Moo2U Ltd
Mooi Dairies Ltd
Mooi Farms Ltd
MooJuice Dairies Limited
Moonlight Farms Trust Ltd
Moore Farming 2020 Limited
Morag Farm Limited
Morana Farms Limited
Morelands Pastoral Ltd
Moss Lane Limited
Mount View Trust
Mt Winchmore Farm Limited
Mullerwhero Farming Ltd
40
Murdoch Southern Farms Ltd
Murphy Farms Limited
N & J A Lodge
N & S Ganderton
N A & K M McColl
N G & B D Simmons
N K Burgoyne
Nadash Partners
Nellnate Partnership
Netherland Holdings Limited
Newera Dairies Limited
Newman & Clarke Limited
Newman & Clarke Limited No 2
Ngahape Valley Farm Ltd
Ngai Tahu Farming
Ngariki Trust
Ngatahi Trust
Ngatitu Whanau Trust
Nikorima Trust
Nilock & Camole Trusts
Nimbalkar Farms Limited
Nippyfarm Limited
NNL Dairying Limited - NO 2
Northland Agricultural
Research Farm Incorporated
Nottingham Farms Limited
NZSF Canterbury Farms
Limited - Lowry
NZSF Rural Holdings Ltd
O J & A J Williams
O'Connell Dairy Ltd
Old Kookaburra Farms Limited
One Arrow Ltd
P J & M E Gamble Family Trust
Pollock Dairies Limited
R W & H A Trotter
Riverside Dairying Limited
Rylock Farms Limited
41
Te Tihi
O–S
P Jones Family Trust
P L & R E Berryman
P M & K F Westenra
P R & R F Mossman
P S & H J Wilson
P T & E A Kelly
Pahau Dairy Ltd
Pomona Farming Limited
R W & K M Powell Trust
Riverside Sharemilking Limited
S & A Novo Limited
Ponga & Pukeko Farms Ltd
RA & L Lash
RJ & KB Smyth
S & A Wheeler Farms Limited
Port Molyneux Dairies Limited
RA Borst & MG Henderson
Robertson Allen Limited
S & G Chick
Pourakino Valley Trust
Radcliffe Rugby Road Limited
Robren Farms Ltd
S & R Pastoral Ltd
Premier Dairies Limited
Raelene Williams
Rockhaven Farm Partnership
S & S Iorns
Roger L Brook T/A Rosebrook
S B & Y M Thompson
Prima Farms Limited
PT & CA Shearer Family Trust
Opadadus Farming Ltd
Pahau Flats Dairy Limited
Pukerua Farm Ltd
Openside Farms Ltd
Oporo Farms Ltd
Oraka Farms Limited
O'Reilly Family Trust
Papakauri Farms Limited
Puketaria Limited
Paton Farms Limited
Pynewood Farm Limited
Paton Trading Company Ltd
Q F & H J Sherriff
Paton Trading Company Ltd
Quirke Family Trust
Orini Downs Station Limited
Patterson Farming Limited
QZL Farms Limited
Orongo Meadows Ltd
Orwell Dairies Limited
Oscar Farming Co Ltd
OSK Limited
Otira Farm Ltd
Owen & Robyn Ruddell
Partnership
Owhango Farms Limited
P & D M Miedema
P & G Mulholland
P & S De Lange
P B & E J Chick
P D & S F Smith
Patterson Rawson Trusts
Partnership
Paul Kay Family Trust
PB & CF Purdie Family Trust
Pebble River Farms Ltd
Pedestal Farms Limited
Perks Farm Limited
R & M King
R & P McIntosh Ltd
R A & K J Feaver
R B & G E Potter
R B & S M Grant Farming
Limited
R G & C K Chubb
Peron Farming Limited
R G King Ltd
Peter Reeve
Pharlee Trust
Philmara Ltd
Pidgeon Pastures Ltd
Pindar Farms Limited
R H & G H Smith
R J Beckett
R L & F M Hurley
R L & S F Thompson
R N & D A Schmidt
R N & R C E Duncan Family
Trust
R N Van Der Fits Family Trust
R P & C J Ballantine
Family Trust
P G & M A Cashmere
Pine Bush Grazing Limited
P G O'Rorke Family Trust
Pineridge Partnership
P H & W F Iorns
P J & H M Butler
P J & K J Henderson
PKW Farms LP
Platinum Dairies Ltd
Poharu 2020 Limited
Rangitata Island Dairy Limited
Rollett Farms Ltd
Rakaia Incorporation (Pahau)
Limited
Rangatira 8A17A5 Trust
Rangeview 2021 Limited
Rangitata Island Dairy
Partnership Ltd
Rata Hill Farm
Red Fox Farms Limited
Redhawk Trust
Reesby Family Farms Limited
Regent Farms Limited
Retell Holdings Limited
Reuver Limited
Reynard Fields Limited
Rich Feet Limited
Richfield & Gee Ltd
Ridge View Dairies Limited
Ridgedale Limited
Ridgevale Dairy Limited
Riley Glen Collinge
Rimoo Farm Limited
Riverbend Farmlands Limited
Riverhill Farming Limited
Riverlands Ko-Torp Ltd
Riverlock Land and Property
Limited
Rogers Family Trusts
Partnership
Rolfe Farms Limited
Rollinson Farms Limited
Rombouts Farm Ltd
Rooney Farms Limited
Rooster Dairy Limited
Rose Fern Farms Ltd
Rosebrae Farm Limited
Rosevale Limited
Roslyn Plains Limited
Ross & Louise Fieten Family
Trust
Rostov Dairies (NZ) Ltd
Rout Dairies Limited
Rowlands 2022 Limited
Partnership
RP & KJ Willans Family Trust
S E & S A Nicholas
Family Trusts
S G McKenzie
S J & D L Smith
S J & J L Fevre Trusts
Partnership
S J Bruce Family Trust
S M & S A Field
S R & C J Baucke
S.V. & M.L. Helms
Sailing Away Family Trust
Sam Hunter & Amy Crofts
Partnership
Sanddale Farm Ltd
Sandow Farming Limited
Sarnia Farms Limited
Sayer Severn Limited
Sayer Trust Partnership
SB & AM Gold Limited
Rua Fox Limited
Schorn Trust
Ruakiwi Dairies Limited
Schouten Dairies Ltd
Rubu Partnership
Ruthe Farms Limited
Rydal Farm Trust
Ryelands Farm Company
Limited
Schouten Dairies Ltd
Scott Evans Sharemilking
Limited
Scott Mark & Rachel May
Ireland
SD & CB Farming Limited
Te Tihi
S–Z
Settler's Inn Trust
Steward Dairy Ltd
Stewartwood Limited
Stichbury Farms Limited
Stoked Enterprises Limited
Stolzenberg Farms Ltd
Stonebrook Dairy Farm Limited
Stonedale Farming Limited
Stoneleigh Park Limited
Stonylea Dairies Limited
Sfarmer Partnership Limited
Stornaway Farm Ltd
Shady Farming Limited
Streamline Limited Partnership
Shawlink Ltd
Sheenfield Farms Ltd
Shenandoah Trust
Siberia Farm Limited
Sidewayz Farming Limited
Simon Maxwell Limited
Sisley Farms Ltd
SJ Bond & DJ Phillips
Small Trading Ltd
Smit Dairies Limited
Sutherland Dairy Co Limited
Swim Farms Ltd
T H Davies Farming Limited
T K & H K Guthrie
T M & H D Green
T M Mcdowall
T R Bongers Trust
T S Curtis
Tablelands Dairy Limited
Taikatu Plains Limited
Smith Enterprises Limited
Tamac Farms Limited
Snaplulu Ltd
Snip Snap Farming
Sole Farms Ltd
South Hilton Ltd
Southern View Limited
Springdale Farms Trust
Tamatea Two Limited
Tamlaght Farm Partnership
Taranga Town Supply
Tata Dairy Ltd
Tayco Farm Limited
42
Tor View Ltd
W S & K M Fleck
Whitestone Dairies Limited
Te Puna Wai Dairy Farm
Limited
Te Whanake Enterprises Ltd
Te Whanake Joint Venture
Torehape Sharemilking Co
Limited
Torran Moor Ltd
W.A & H.R Simpson Farming
Ltd
Wade Industries Ltd
Te Whenua O Matata Limited
Trenberth Family Trust
Waikatland
Telesis Trust
Ternstone Limited
Trinity Lands Limited
Waimak Dairies Limited
TRK Farm Limited
Waimarama Farming Ltd
Terrace Farms 2016 Limited
Tronnoco Farming Co Ltd
Waimate Fields Ltd
Terrace Top Dairy Ltd
True Blue Trusts
The D & A Roberts Family Trust
TS Dairies Limited
The Grange Ltd
Tuki Tuki Awa Ltd
Wainui Dairies
Waiongona Flats Ltd
Waiotu Farms Ltd
The Herewahine Trust
Turpin Dairies Limited
Wairakau Farm Trust
Wilcock Farming Limited
Willans Holdings Ltd
Willbound Farm Limited
Williamson Trust Partnership
Willowbrook Farms Ltd
Willowcreek Trust
Willowfields Limited
Willowhaugh Enterprises
Limited
Willowview Pastures Limited
Wilmat Farms Limited
Wilson Produce Limited
The Isaac Conservation &
Wildlife Trust (ICWT)
The White Gold Farm 2022
Limited
Thornehayes Farm Ltd
Three Bells Ltd
Three Daughters (2018)
Limited
Tiaki Farm Limited Partnership
Tiger Hill Farm Ltd
Tiroroa Farms Limited
Titipua Limited Partnership
TJ Gray & BA Johnston
TK & MG Wright
TL & SL Taylor Ltd
Tobruk Farms Ltd
Toggenburg Trust
Tussocky Road Dairy Farm
Limited
Twin Creeks Partnership
Tyndale Family Trust
Tyndale Trust
Tyrone Trust P/Ship
Upper Balmoral Limited
Uruwhenua Farms Ltd
V & B Kalin Limited
V & J Ralph Ltd
V E & D M Grant
Vale Green Services Limited
Valley Views Southland Ltd
Van De Pas Trust
VDP Limited
Waitago Farms Ltd
Waitoru Farm Limited
Windsor Park Dairies Limited
Waituna Investments Ltd
Windy Hills Farms Ltd
Waiwira Holdings Ltd
Winter Farms (2004) Ltd
Walker Holdings Taupiri Ltd
Wiremu Trusts
Walsh Enterprises Limited
Withco Holdings Ltd
Watford Trust
Wattle Downs Limited
Webber Farm Limited
Wolff Farms Limited
Woodlaw Farm Ltd
Woodside Dairying Ltd
Webster Farming Limited
Woody's Charters Limited
Welsh Family Farms Limited
West Mains Farm Ltd
Westbrook Farming Company
Limited
Western Heights Partnership
WP & KA Myers Family Trusts
Partnership
Wynyard Dairies Ltd
Youngish Farming Partnership
Zagri Dairies Limited
Taylor Family Enterprises Ltd
Tokoroa Pastoral Ltd
Ventura Dairies Limited
Westridge Farm Limited
Zeldon View Limited
St Helena Farms Limited
Te Awa Pararahi Limited
St Helena Trust
Te Kiri Beers Limited
Steele & Sons Limited
Te Ngutu Land Holding Co Ltd
Stevenson S R & J A Trust
Tom Hargreaves Farms Ltd
W & C Gibberd
Whakahora Farm Ltd
Zoetermeer Agriculture Ltd
Tomclan Holdings Ltd
Tomco Limited
W A & D P McKenzie
Whakatupu Farming Limited
W R & D J Little
Wharepapa Trust
Ventsha Farms Limited
Westmere Co (2007) Ltd
Zeeland Dairies Limited
Fonterra Annual Review 2023
43
43
Off-farm
Off-farm
High inflation and global
recessionary pressures have
made this a volatile year. While
our Co-op hasn’t been immune
to these impacts, our earnings
have benefited from our ability
to capture favourable margins
in our protein portfolio, while our
Farmgate Milk Price has been
impacted by reduced demand
for powders.
44
We’ve made good progress on key strategic initiatives, including
refining our asset portfolio, reducing our emissions, and growing
our innovation portfolio.
Fonterra returns capital to shareholders
When we released our long term strategy in 2021, we committed
to return capital to shareholders pending the outcome of the sale
of our Chilean Soprole business.
We are pleased to have completed divestment of the business
in FY23, putting us in the position to return $804m, or 50 cents
per share, to shareholders and unit holders.
On July 26, farmers voted in favour of the capital return with
payment subsequently made on 18 August 2023.
As well as completing the divestment of Soprole, we completed
the sale of our last remaining China Farm and agreed the sale of
DPA Brazil, our joint venture with Nestlé, to Lactalis.
Fonterra increases emissions
reduction ambitions
Fonterra’s Scope 1&2 emissions largely come from our
manufacturing operations and supply chain. Strengthening our
emissions reduction target supports our ambition to be net zero
by 2050.
Achieving our new emissions reduction target will require
Fonterra to continue to undertake energy efficiency
improvements and fuel switching to renewable energy source
activities across our milk collection fleet and manufacturing sites,
with a focus on the seven that use coal.
To do this, Fonterra is forecasting an investment of
approximately $790 million, including a government
contribution of up to $90 million through the Government
Investment in Decarbonising Industry (GIDI) fund.
The decarbonisation plan will see Fonterra build on current and
completed work at five of its manufacturing sites and explore
multiple technologies to assist us selecting the most efficient
transition to renewable energy across our manufacturing sites,
while building resilience into our operations.
Accelerating these plans will help Fonterra continue to present
customers with the world’s lowest carbon dairy at scale1.
It will also contribute to New Zealand meeting its climate
targets while delivering benefits across regional New Zealand,
such as job opportunities in local communities, from our
decarbonisation projects.
NZ’s largest cool distribution centre
November marked the completion of over two years of
construction, installation and commissioning to create our
first and only retro fitted automated distribution centre in
New Zealand.
It is the largest automated Cool Distribution Centre (DC) in
New Zealand, located in Hamilton.
The upgraded DC will improve site efficiency, reduce energy
consumption, and reduce product and infrastructure damage
through the automation of 40,000 pallet spaces, resulting in
an expected savings of $4 million per year for the Co-op.
1 DairyNZ, February 2021: Mapping the carbon footprint of milk for dairy cows
45
Fonterra
Te Awamutu
Decarbonising our
operations
Nutrition Science
Solutions
Stirling site running on renewable
thermal energy
The Stirling wood biomass boiler fired up for the first time
in April, marking the next step on the site’s transition to
be totally reliant on renewable energy for its process heat.
Changing to this boiler will reduce the annual carbon
emissions forecast by 18,500 tonnes – the equivalent of
taking approximately 7,700 cars off New Zealand’s roads.
Hautapu converting to wood biomass
The Co-operative will convert coal boilers at its Hautapu
site to wood pellets. Once complete in early 2024 the
Hautapu site will reduce our carbon emissions by a
forecast 15,785 tonnes per annum - the equivalent of
taking about 6,500 cars off New Zealand’s roads.
Waitoa installs new biomass boiler
The new Waitoa wood biomass boiler, due to be
operational in November 2023, will reduce the site’s
annual carbon emissions by approximately 48,000
tonnes, the equivalent of taking approximately 20,000
cars off New Zealand’s roads.
Fonterra launches nutrition science
venture arm
Fonterra has taken another step in implementing
its strategy to be a leader in dairy innovation and
science with the launch of a new nutrition sciences
venture arm.
The business – provisionally named Nutrition
Science Solutions (NSS) – will operate as a
standalone business within Fonterra with its
own board and CEO.
The NSS Board consists of two Independent
Directors, William Fu-wei Liao (Chair) and Rodolphe
Barrangou, and two Directors from the Fonterra
Management Team, Mike Cronin and Komal
Mistry-Mehta.
NSS will incubate and scale a portfolio of disruptive
ventures by developing solutions that combine
science, nutrition and technology to seek to make a
real impact on human health.
The first investment made through NSS was US$10
million for a minority shareholding in San Francisco
based Pendulum, a biotech company pioneering the
next frontier of metabolic health through its
microbiome-targeted products.
Products
& customers
We believe our New Zealand pasture-
based farming produces the best milk in
the world, a testament to the care and
attention our farmers give to their animals
and the land.
This high level of focus means that our on-farm carbon
footprint is amongst the lowest in the world. As our
customers and consumers become more interested in the
provenance of their food, our sustainability credentials are
more important than ever.
46
Ruby, Southland
47
We play an important part in the
development of new dairy innovations,
helping customers as they look to
nutrition solutions to help them live
longer and healthier lives.
As the world changes, we change with it, adapting to the
evolving needs and desires of our customers and consumers.
Using our extensive dairy expertise, we are creating new value-
add products to cater to the changing tastes of consumers
around the world. Through these innovations, we seek to
maximise value for both our customers and farmer owners,
while looking to utilise every single drop of milk.
Innovating close to customers
Fonterra and DSM’s new venture: Vivici
In April, we launched Fonterra’s Shenzhen Application Center
(FAC) focused on beverage innovation.
With continued population growth, the world needs new
nutritional and functional food options.
Strategically located in the heart of the “New Capital of
Beverages,” Shenzhen, it is our fifth FAC in China following
Shanghai, Beijing, Chengdu, and Guangzhou.
China is a highly competitive beverage market, with consumers
constantly seeking the next best drink. Last year, 1,434 new kinds
of non-alcoholic beverages were launched in China by key tea
and beverage brands.
Businesses must adapt quickly to market trends and continuously
create novel products that typically combine traditional tea
ingredients, dairy and fruit products.
The Shenzhen application centre provides a new platform to
explore the diverse use of Fonterra products in beverages and
provide innovative application solutions to meet the local needs
of Chinese consumers.
A team of technical experts and experienced chefs are stationed
at the centre and help to create an interactive, experiential
space for customers, through product development seminars,
demonstrations, and virtual live teachings.
In July, Prime Minister of New Zealand, Chris Hipkins, visited our
application centre in Shanghai as part of his state visit to China.
The Shanghai centre is the Co-op’s first, established in 2014.
Based on this vision, Vivici is a new startup company founded
by DSM Venturing and Fonterra.
It builds on a multi-year joint research development
agreement of DSM and Fonterra which led to promising
outcomes.
Vivici obtained IP rights and exclusive commercial rights from
Fonterra and DSM for developing and commercialisation of
precision fermentation-derived proteins.
The startup combines DSM’s world-leading expertise in
precision fermentation science and technology with Fonterra’s
world-leading dairy science and technology.
Since it was launched in August 2022, Vivici has cemented its
structure and defined its mission ‘to meet the world’s growing
need for sustainable, nutritious and great tasting proteins.’
These new sources of protein will meet demand that is
expected to double by 2050, driven by a growing and more
affluent global population, demand which the planet is not
expected to be able to meet through existing production.
It provides potential opportunity for Fonterra to extend our
farmers’ milk into products, categories and markets we’re
not currently participating in.
Vivici will target broad food and beverage markets and plans
to be open for customer collaboration later in 2023.
Fonterra Application Centre,
Shenzhen
Ruby,
Southland
48
Products & customers
Collaborating with customers to align
on sustainability challenges
Fonterra and Mars benefit from shared values around innovation
and sustainability which underpins our deepening global strategic
partnership. Together, we ran a candy drop, where over 1,000
of our tanker drivers delivered Mars chocolates to our farmers
thanking them for the work they’re doing to improve on-farm
sustainability practices.
At the end of 2022 we signed a Global Supply Agreement
with Mars, where we will supply skim milk power, whole milk
powder and anhydrous milk fat with Fonterra’s share of wallet
scaling significantly through 2025. This deep partnering with
our customers around shared innovation and climate goals is
a powerful way forward for both of our businesses.
Australia responds to consumer trends
Our Australian business is responding to consumer preferences
for sustainable products.
The team launched a Mainland re-closeable snacking product,
which keeps biscuits and cheese fresh in the fridge.
This caters to the ever-growing in-home snacking market by
providing 16 slices of cheese along with two options for crackers.
This innovation means less waste and gives consumers more
choice for their snacking budget.
Premium Nutrition
Our innovation teams have launched numerous novel
applications as we seek to extract maximum value out of NZ
milk this year. Two examples are the Power Up high protein
coffee milk solution and high protein yoghurts.
In the first example, Fonterra offers an Intellectual Property
formulation, process know-how and ingredients package.
This accelerates and de-risks our customers’ ability to launch
a high protein coffee milk, in a UHT format, that is designed
to remain stable during shelf life. This is challenging as the
acidity from the coffee in a protein packed system can cause
sedimentation over the long shelf life expected of a UHT
product.
For high protein yoghurts, Fonterra has a range of ingredients
that allow unrivalled protein enrichment and enable a wide
range of textures, including drinking, spoonable and set;
without compromising flavour and mouthfeel. This is a
significant unlock and has proven difficult for competitors to
replicate and further demonstrates the quality ingredients,
application and processing knowledge held by the Co-op.
So far, these yoghurt innovations have seen success in USA,
Korea and Japan, to name a few.
49
Drysdale Farm,
Hawkes Bay
Fonterra Management Team
50
Miles Hurrell
Neil Beaumont
Judith Swales
Chief Executive Officer
Miles was appointed Chief Executive in 2018. He is responsible
for leading the organisation, delivering strategy and financial
performance, and engaging with our farmer owners, employees,
customers and shareholders.
As Chief Executive, Miles has led the Co-operative through
strategic reviews into a new growth phase focused on
New Zealand’s pasture-based milk, dairy innovation and science
and sustainability.
Previously, Miles held the role of Chief Operating Officer, Farm
Source, with responsibility for farmer services and engagement,
milk sourcing and the operation of New Zealand’s 70 Farm
Source™ retail stores.
Miles has also held a number of leadership roles across the Co-
op, including Group Co-operative Affairs Director and General
Manager Middle East, Africa, Russia and Eastern Europe where he
led a period of sustained growth across the region. Earlier in his
career, Miles worked as the General Manager of Global Sourcing,
building relationships with many of our global partners of today.
Miles has completed management programmes at INSEAD
(International Executive Development), London Business School
(Finance), Kellogg’s NorthWestern University (Global Sales) and
IMD Switzerland (Global Marketing).
Chief Financial Officer
Neil Beaumont joined Fonterra in 2023 and is responsible for the
Co-operative’s finances, its financial portfolios, as well as mergers
and acquisitions. He is a highly accomplished Chief Financial
Officer with 25+ years of diverse and global finance leadership
experience, having lived and worked in Canada, Australia,
and Chile.
Most recently, Neil was Group CFRO of Canada’s largest
investment fund – the Canadian Pension Plan Investment Board
(CPPIB) – responsible for finance, risk, and strategic planning of
this C$500B+ organisation.
Prior to that, he had a six-year career with Australian
multinational resources company BHP, where he spent time
in both Group Finance and as CFO for the Minerals Americas
region.
Neil also spent over ten years as a Senior Partner with KPMG
operating as Business Unit Leader for Canada’s Western region,
with broad-reaching leadership across 13 offices and industry
client responsibility across agriculture, resources, technology,
and oil and gas.
He is a Chartered Professional Accountant and holds a Bachelor
of Commerce degree from the University of Saskatchewan.
Chief Executive Officer, Global Markets
Judith Swales leads Fonterra’s Global Markets region. Responsible
for our Consumer, Foodservice and Ingredients channels across
the region, Judith and her team lead the global strategy to help
bring the goodness of dairy to generations of customers and
consumers.
Prior to this Judith was Fonterra’s CEO for Asia Pacific, and earlier
led the Global Consumer and Foodservice business, and the
Innovation and Transformation business unit. Judith joined the
Co-operative originally in 2013 as Managing Director Australia
and Fonterra Oceania.
The daughter of a milkman, Judith grew up helping her father
on his daily milk run. She has extensive experience in senior
management and business turnarounds. Before joining
Fonterra, she was Managing Director of Heinz Australia, CEO
and Managing Director of Goodyear Dunlop, Australia and
New Zealand, and Managing Director of Angus and Robertson.
She currently serves as a Non-Executive Director for Super
Retail Group and has served on the boards of Virgin Australia,
DuluxGroup and Fosters.
Judith has a Bachelor of Science (Honours) in Microbiology and
Virology and is a graduate member of the Australian Institute of
Company Directors.
51
Teh-han Chow
Kate Daly
Mike Cronin
Chief Executive Officer, Greater China
Teh-han oversees the Co-op’s business in the Greater China region,
including Ingredients, Foodservice and Consumer Brands. The
region is one of the largest markets for Fonterra, accounting for
roughly a third of the Co-op’s total business.
Prior to his appointment as Chief Executive Officer of the Greater
China region in 2020, Teh-han was President of Fonterra’s
ingredients business, NZMP, in Greater China, and South and
East Asia.
Teh-han has over 20 years of experience in China across a variety
of industries and functions, including marketing, public relations,
advertising, sales, and management roles in food, agriculture,
commodities, FMCG, luxury goods, and hospitality sectors.
Prior to joining Fonterra in 2015, Teh-han was Chief Executive
Officer of Louis Dreyfus Commodities China, where he doubled
the business, expanded the company’s business lines, built and
acquired production facilities, and was involved in establishing
multiple joint-ventures including COFCO Agricultural Industry
Investment Fund. Prior to Louis Dreyfus, Teh-han was Managing
Director for Greater China for J.R. Simplot, a United States-
based diversified agribusiness with farming and food processing
operations in China.
Teh-han has a Bachelor’s degree in Marketing from California State
University Northridge, and a Master’s degree, with honours, in
International Management from Thunderbird Graduate School of
International Management.
Managing Director, People and Culture
Kate was appointed as Managing Director People and Culture in
August 2021.
She has oversight of the teams responsible for facilitating
Fonterra’s people strategy including Culture, Employment
Relations, Leadership Development, Talent and Future
Capabilities, Rewards and Global Mobility.
Kate first joined Fonterra in December 2020, making significant
contribution to the Co-operative as Director of HR for COO,
where she held responsibility for leading the HR function for
Fonterra across NZ Manufacturing, Technical Excellence, Global
Supply Chain, Global Sustainability, Global Quality & Safety,
Category Strategy & Innovation and Information Technology.
Prior to joining Fonterra, Kate had extensive experience in
Human Resources and Communications leadership, having held
senior roles across these portfolios since 2001. Kate previously
led a transformation of the People and Culture function at
the BNZ. She also was appointed as the Chief People and
Communications Officer with Fletcher Building Ltd. Kate was
awarded the HRINZ HR person of the year in 2018 in recognition
for her contribution to Fletcher Building.
Kate has a Bachelor of Commerce in Economics and International
Finance and a Bachelor of Science in Pharmacology, both from
the University of Auckland.
Managing Director, Co-operative Affairs
Mike Cronin oversees Co-operative Affairs which includes
Governance, Risk and Audit, Farm Source, Global Sustainability,
Stakeholder Affairs and Trade, Legal, Inclusion and Māori Strategy.
Mike joined Fonterra in 2002 and has been a member of teams
that have contributed to some of Fonterra’s key initiatives,
including Trading Among Farmers, the Governance and
Representation Review, the Fonterra Purpose, The Co-operative
Difference and Flexible Shareholding.
Prior to 2014 when he joined the Fonterra Management Team,
Mike was the General Manager of Strategy Deployment and then
Group Director Governance and Legal.
Mike has a Bachelor of Laws and Bachelor of Arts from the
University of Auckland.
52
Information about the
Board of Directors can be
found in the Governance
& Statutory Disclosures.
Komal Mistry-Mehta
Emma Parsons
Anna Palairet
Chief Innovation and Brand Officer
Komal leads Fonterra’s innovation, research and development
functions along with the Co-operative’s brand and
communications activities. This includes shaping the future
of Fonterra by developing and commercialising innovation,
technologies and new business models.
In addition, Komal oversees the Active Living Business Unit, and
has responsibility for setting the global strategy for Core Dairy,
Foodservice and the Nutrition Science portfolio.
Prior to joining the Fonterra Management Team in August 2022,
Komal led Fonterra’s high-value global ingredients business
Active Living, unlocking growth through developing and
commercialising science-backed health and wellness solutions.
In her prior role, Komal’s work establishing and developing
Fonterra Ventures earned her the title of New Zealand’s Young
Executive of the Year in the 2017 Deloitte Top 200 Awards. Prior
to joining Fonterra in 2011, Komal worked for Deloitte in Europe.
She is known for her leadership in developing people and her
strong advocacy for diversity and inclusion.
Komal has completed the Executive Program at Stanford
University School of Business and holds Bachelor of Laws
and Bachelor of Management degrees from the University
of Waikato. She is a Barrister and Solicitor of the High Court
of New Zealand as well as a member of the New Zealand
Institute of Chartered Accountants.
Managing Director, Strategy and Optimisation
Emma leads Fonterra’s work on strategy and optimisation,
overseeing the product portfolio management function, and the
development and implementation of strategy.
Prior to August 2022 when Emma joined the Fonterra
Management Team, she was the General Manager of Capital
Strategy and Chief Executive Officer of Agrigate, a joint venture
between Fonterra and Livestock Improvement Corporation (LIC),
GM Responsible Dairying, and had roles in Brazil and Argentina
where she developed the Co-operative’s export relationships and
supply chain integration across Latin America.
Before joining Fonterra in 2001, Emma worked for the
New Zealand Dairy Board and Kiwi Dairies.
She has a Master of Business Administration, with First Class
Honours, from Massey University, and Bachelor of Science and
Bachelor of Commerce degrees from Victoria University of
Wellington.
Chief Operating Officer (Acting)
Anna is currently the Chief Operating Officer (Acting) for
Fonterra, responsible for our New Zealand manufacturing sites
and global supply chain operations, technical excellence, and
global safety, quality and regulatory teams.
She re-joined the dairy industry in October 2022 as the Director,
Global Supply Chain before moving into the Chief Operating
Officer (Acting) role in June 2023. She is also Chair of Kotahi
Logistics.
Anna is an experienced business leader with a career spanning
some of Australasia’s largest multinational companies across
multiple industries including Fonterra, Carter Holt Harvey,
Amcor, and Air New Zealand.
During her 16 years with Air New Zealand, Anna led commercial
portfolios in the company’s Engineering, Group Supply Chain,
Operations, Customer and Sales divisions. Positions included GM
Air New Zealand Cargo, GM Property and Infrastructure, Head of
Sustainability and Head of Procurement.
Anna is a past Board Director for the New Zealand Green
Building Council (NZGBC) and past Board Trustee of Gladstone
Primary School. She has a Bachelor of Science, Genetics and
Microbiology degree from Massey University.
Information about the
Board of Directors can be
found in the Governance
& Statutory Disclosures.
53
Jack, Maheswary & Bronte,
Auckland
54
Reconciliation from profit after tax to total Group normalised EBITDA
Profit after tax
Net finance costs from continuing operations
Net finance costs from discontinued operations
Tax expense from continuing operations
Tax expense from discontinued operations
Depreciation and amortisation from continuing operations
Depreciation and amortisation from discontinued operations
Total Group EBITDA
Gain on sale of Chilean Soprole business
Loss on sale of Hangu China farm
Gain on sale of Global Dairy Trade
Brazil consumer and foodservice business impairment
Total normalisation adjustments
Total Group normalised EBITDA
GROUP $ MILLION
31 JULY 2023
31 JULY 2022
RE-PRESENTED1
1,577
211
50
303
77
654
8
2,880
(349)
12
–
–
(337)
2,543
583
194
37
131
31
602
33
1,611
–
–
(42)
57
15
1,626
1 Comparative information has been re-presented for consistency with the current period. Refer to the Notes to the Financial Statements section –
Note 20 Re-presentations for further details.
Non-GAAP
measures
Fonterra uses several non-GAAP measures when
discussing financial performance. Non-GAAP
measures are not defined or specified by NZ IFRS.
They are not subject to audit unless they are included
in Fonterra’s audited annual financial statements.
Management believes that these measures provide useful information as
they provide valuable insight on the underlying performance of the business.
They may be used internally to evaluate the underlying performance of
business units and to analyse trends. These measures are not uniformly
defined or utilised by all companies. Accordingly, these measures may not
be comparable with similarly titled measures used by other companies.
Non-GAAP financial measures should not be viewed in isolation nor
considered as a substitute for measures reported in accordance with
NZ IFRS.
Please refer to the following tables for reconciliations of NZ IFRS to non-
GAAP measures, and the Glossary for definitions of non-GAAP measures
referred to by Fonterra. Non-GAAP measures are not subject to audit unless
they are included in Fonterra’s audited annual financial statements.
55
Reconciliation from profit after tax to total Group normalised EBIT
Reconciliation from profit after tax to normalised profit after tax and
normalised earnings per share
Profit after tax
Net finance costs from continuing operations
Net finance costs from discontinued operations
Tax expense from continuing operations
Tax expense from discontinued operations
Total Group EBIT
Normalisation adjustments (as detailed on previous page)
Total Group normalised EBIT
GROUP $ MILLION
31 JULY 2023
31 JULY 2022
RE-PRESENTED1
1,577
211
50
303
77
2,218
(337)
1,881
583
194
37
131
31
976
15
991
Profit after tax
Normalisation adjustments (as detailed on the previous page)
Tax on normalisation adjustments
Normalised profit after tax
(Profit)/loss attributable to non-controlling interests
Normalisation adjustments attributable to non-controlling interests
Normalised profit after tax attributable to equity holders of the
Co-operative
Weighted average number of Co-operative shares (thousands of shares)
Normalised earnings per share ($)
GROUP $ MILLION
31 JULY 2023
31 JULY 2022
1,577
(337)
89
1,329
(40)
–
1,289
583
15
(7)
591
1
(24)
568
1,610,507
0.80
1,613,353
0.35
Reconciliation from gross profit from continuing operations to total
Group normalised gross profit
Gross profit from continuing operations
Gross profit from discontinued operations
Total Group normalised gross profit
GROUP $ MILLION
31 JULY 2023
31 JULY 2022
RE-PRESENTED1
4,181
418
4,599
2,909
431
3,340
1 Comparative information has been re-presented for consistency with the current period. Refer to the Notes to the Financial Statements section –
Note 20 Re-presentations for further details.
56
Glossary
Terms
Active Living
Adjusted net debt
Definitions
Terms
Definitions
represents ingredients and solutions sold to businesses who cater to consumers’
health and wellness needs. It addresses three dimensions of wellbeing (Physical,
Mental, Inner), extending to meet the nutrition needs of medical patients through to
everyday people pursuing active lifestyles. This portfolio includes proteins, specialty
ingredients such as probiotics, lactoferrin and lipids, and patented formulations.
is calculated as total borrowings, plus bank overdraft, less cash and cash equivalents,
plus a cash adjustment for 25% of cash and cash equivalents held by the Group’s
subsidiaries, adjusted for derivatives used to manage changes in hedged risks on debt
instruments. Amounts relating to disposal groups held for sale are included in the
calculation.
Cash operating expenses
per kgMS
is continuing operations operating expenses, less non-cash costs (depreciation,
amortisation, right of use asset costs, impairments). Shown by kilogram of
New Zealand milk solids collected.
Ceased Shareholder
is a Shareholder that has given notice of ceasing supply, or is treated as having given
such a notice, and whose cease notice has become effective.
Consumer
is the channel of branded consumer products, such as powders, yoghurts, milk,
butter and cheese.
Continuing operations
means operations of the Group that are not discontinued operations.
Associated Shareholder
is a Shareholder that is a Farm Lessor, Sharemilker or Contract Milker.
Core Operations
Attributable to equity
holders of the Co-
operative
Average capital
employed
Bulk liquids
Capital employed
Capital expenditure
is used to indicate that a measure or sub-total excludes amounts attributable to
non-controlling interests.
is a 13-month rolling average of capital employed.
Custodian
Debt to EBITDA
means bulk raw milk that has not been processed and bulk separated cream.
is adjusted net debt less the cash adjustment (used in calculating adjusted net debt),
plus cash and cash equivalents held by subsidiaries for working capital purposes, plus
equity excluding hedge reserves and net deferred tax assets.
DIRA
represents core operating functions including New Zealand milk collection and
processing operations and assets, supply chain, Group IT and Sustainability; Fonterra
Farm Source™ retail stores; and the Strategy and Optimisation function.
means the Fonterra Farmer Custodian, which is the legal holder of the shares in
respect of which economic rights are held for the Fund and any Market Makers.
is adjusted net debt divided by Total Group normalised earnings before interest, tax,
depreciation and amortisation (Total Group normalised EBITDA) excluding share of
profit/loss of equity accounted investees, net foreign exchange gains/losses and any
normalised EBITDA relating to entities divested during the year.
means the Dairy Industry Restructuring Act 2001, which authorised Fonterra’s
formation and regulates its activities, subsequent amendments to the Act, and the
Dairy Industry Restructuring (Raw Milk) Regulations 2012.
is purchases of property (less specific disposals where there is an obligation to
repurchase), plant and equipment and intangible assets (excluding purchases of
emissions units), net purchases of livestock, and includes amounts relating to
disposal groups held for sale.
Discontinued operations
means a component of the Group that is classified as held for sale (or has been sold)
and represents, or is part of a single co-ordinated plan to dispose of, a separate major
line of business or geographical area of operations, or is a subsidiary acquired
exclusively with a view to resale.
Capital invested
is capital expenditure plus right of use asset (e.g. leases) additions and business
acquisitions, including equity contributions, long-term advances, and investments.
Dividend yield
is dividends (per share) divided by volume weighted average share price for the
period 1 August to 31 July.
Earnings before interest
and tax (EBIT)
Earnings before interest,
tax, depreciation and
amortisation (EBITDA)
Earnings per share (EPS)
57
Terms
Definitions
Terms
Definitions
is profit before net finance costs and tax.
Free cash flow
is the total of net cash flows from operating activities and net cash flows from
investing activities.
is profit before net finance costs, tax, depreciation and amortisation.
Fund
is the Fonterra Shareholders’ Fund.
is profit after tax attributable to equity holders of the Co-operative divided by the
weighted average number of shares on issue for the period.
EBIT margin
is EBIT divided by revenue from sale of goods.
EBITDA margin
is EBITDA divided by revenue from sale of goods.
Economic rights
means the rights to receive dividends and other economic benefits derived from
a share, as well as other rights derived from owning a share.
Eliminations
represents eliminations of inter-business unit sales.
Farmgate Milk Price
means the average price paid by Fonterra for each kilogram of milk solids (kgMS)
supplied by Fonterra’s farmer shareholders under Fonterra’s standard terms of
supply. The season refers to the 12-month milk season of 1 June to 31 May. The
Farmgate Milk Price is set by the Board, based on the recommendation of the Milk
Price Panel. In making that recommendation, the Panel provides assurance to the
Board that the Farmgate Milk Price has been calculated in accordance with the
Farmgate Milk Price Manual.
Fonterra's average NZD/
USD conversion rate
is the rate that Fonterra has converted net United States Dollar receipts into
New Zealand Dollars including hedge cover in place.
Foodservice
represents the channel selling to businesses that cater for out-of-home consumption;
restaurants, hotels, cafés, airports, catering companies etc. The focus is on customers
such as; bakeries, cafés, Italian restaurants, and global quick-service restaurant
chains. High performance dairy ingredients including whipping creams, mozzarella,
cream cheese and butter sheets, are sold in alongside our business solutions under
the Anchor Food Professionals brand.
Gearing ratio (%)
(adjusted net debt)
is adjusted net debt divided by total capital. Total capital is equity excluding hedge
reserves, plus adjusted net debt.
Global accounts
means large scale, multi-national/multi-region customers.
Global Dairy Trade (GDT)
means the electronic auction platform that is used to sell commodity dairy products.
Global Markets
Greater China
Gross margin
represents the Ingredients, Foodservice and Consumer channels outside of
Greater China.
represents the Ingredients, Foodservice and Consumer channels in Greater China.
is gross profit divided by revenue from sale of goods.
Gross profit from Core
Operations per kgMS
is Core Operations business unit (excluding Farmsource) gross profit, less the cost of
New Zealand milk sold. Shown per kilogram of New Zealand milk solids sold by Core
Operations (continuing business).
Growth capital
expenditure
Held for sale
Ingredients
is investments to drive business expansion or improvement toward our strategy and
generate incremental revenue. This includes organic growth (existing business
projects) and inorganic growth (mergers and acquisitions).
is an asset or disposal group is classified as held for sale if it is available for immediate
sale in its present condition and its sale is highly probable. A disposal group is a group
of assets and liabilities to be disposed of (by sale or otherwise) in a single transaction.
represents the channel comprising bulk and specialty dairy products such as milk
powders, dairy fats, cheese and proteins manufactured in New Zealand, Australia
and Europe, or sourced through our global network, and sold to food producers
and distributors.
58
Definitions
Terms
Definitions
means kilograms of milk solids, the measure of the amount of fat and protein in the
milk supplied to Fonterra.
Price Relativities
refers to the difference in the weighted average price (in USD) between the
Co-op’s Reference Product portfolio and Non-reference Product portfolio.
The difference between these two weighted average prices is a key driver of the
Co-op’s gross margin.
Terms
kgMS
Market Maker
is a third party appointed by the Co-op who is active in making bids and offers on a
minimum number of Fonterra Co-operative Group Shares.
Maximum Holding
is the maximum number of shares a Supplying Shareholder can hold, which is equal
to 4 times the Share Standard.
Minimum Holding
is the minimum number of shares a Supplying Shareholder is required to hold, which is
equal to 33% of the Share Standard. New entrants have up to six seasons to meet this.
Net debt
means adjusted net debt.
Net working capital
is total trade and other receivables plus inventories, less trade and other payables.
It excludes amounts owing to suppliers and employee entitlements.
Non-Reference Products
means all New Zealand milk solids processed by Core Operations, except for
Reference Commodity Products.
Non-shareholding farm
means a farm where the owning entity is not entitled to hold shares in the
Co-operative. As an example, farms supplying MyMilk.
Non-supplying
Shareholder
Normalisation
adjustments
means all shareholdings that are not Supplying Shareholders.
means adjustments made for certain transactions that meet the requirements
of the Group’s Normalisation Policy. These transactions are typically unusual in
size and nature. Normalisation adjustments are made to assist users in forming a
view of the underlying performance of the business. Normalisation adjustments are
set out in the Non-GAAP Measures section. Normalised is used to indicate that a
measure or sub-total has been adjusted for the impacts of normalisation
adjustments. E.g. ‘Normalised EBIT’.
Permitted Transferee
is a person who has been approved by the Co-op and who is (and remains) related to
or associated with a Ceased Shareholder.
Product channel
Fonterra has three product channels, Ingredients, Foodservice and Consumer.
Profit after tax margin
is profit after tax attributable to equity holders of the Co-operative, divided by
revenue from sale of goods.
Reference Commodity
Products (also referred to
as Reference Products)
is commodity specifications of the five Reference Commodity Products (RCPs) which
are Whole Milk Powder (WMP) and Skim Milk Powder (SMP), and their by-products
Butter, Anhydrous Milk Fat (AMF) and Buttermilk Powder (BMP). These commodity
groups are included in the calculation of the Farmgate Milk Price.
Reported
Retentions
is used to indicate a sub-total or total is reported in the Group’s Financial Statements
before normalisation adjustments. E.g. ‘Reported profit after tax’.
means earnings per share, less dividend per share. Retentions are reported as nil
where Fonterra has reported a net loss after tax.
Return on Capital (ROC)
is calculated as Total Group normalised EBIT including finance income on long-term
advances less a notional tax charge, divided by average capital employed.
Rules for Shareholding
is the Rules for Shareholding adopted by the Fonterra Board from time to time.
Season
New Zealand: A period of 12 months from 1 June to 31 May.
Australia: A period of 12 months from 1 July to 30 June.
Secondary Shareholder
is a sharemilker as defined in section 34 of the Co-operative Companies Act that
holds shares as if they were a Supplying Shareholder, pursuant to section 44 of the
Co-operative Companies Act and clause 30.5 of the Constitution.
Share Standard
means one share per one kgMS supplied, used to calculate a Supplying Shareholder's
Minimum Holding and Maximum Holding.
Terms
Definitions
Shareholding farm
means a farm where the owning entity of the farm has a minimum required
shareholding of at least 1,000 shares in the Co-operative. This includes farms where
the owning entity is in the process of sharing up on a Share Up Over Time contract.
Supplying Shareholder
is a shareholder supplying milk to the Co-op.
Sustaining capital
expenditure
represents investments to maintain the capability of our existing assets from risk
management, legislation/regulation commitments, business continuity and capital
replacement, as well as projects that drive the Co-operative's sustainability targets.
Total Group
Total payout
is used to indicate that a measure or sub-total comprises continuing operations,
discontinued operations and non-controlling interests. E.g. ‘Total Group EBIT’.
means the total cash payment per milk solid that is backed by a share, being the sum
of the Farmgate Milk Price per kgMS and the dividend per share.
Total Shareholder Return
(TSR)
is the measure of share price movements and all economic distributions (e.g.
dividends, capital returns) over a specified period of time, divided by the original
investment amount. Expressed as an annualised percentage.
Tradeable shares
represents shares on issue that are in excess of aggregate minimum shareholding.
WACC
means weighted average cost of capital.
Weighted average share
price
represents the average price Fonterra Co-operative Group Limited shares traded at,
weighted against the trading volume at each price over the reporting period.
Working capital days
is calculated as 13-month rolling average working capital divided by revenue from the
sale of goods (excluding impact of derivative financial instruments) multiplied by the
number of days in the period. The working capital days calculation excludes other
receivables, prepayments, other payables and includes working capital classified as
held for sale.
59
Iso,
Auckland
Directory
Fonterra Board
of Directors
Registered
Office
Fonterra Shares
& FSF Units Registry
Peter McBride
Clinton Dines
Brent Goldsack
Leonie Guiney
Bruce Hassall
Holly Kramer
Andrew Macfarlane
John Nicholls
Cathy Quinn
Scott St John
Alison Watters
Fonterra
Management Team
Miles Hurrell
Neil Beaumont
Judith Swales
Teh-han Chow
Kate Daly
Mike Cronin
Komal Mistry-Mehta
Emma Parsons
Anna Palairet
Fonterra Co-operative
Group Limited
Computershare Investor
Services Limited
Private Bag 92032
Auckland 1142
New Zealand
109 Fanshawe Street
Auckland Central 1010
New Zealand
Phone +64 9 374 9000
Private Bag 92119
Auckland 1142
New Zealand
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
Investor Relations
Enquiries
Phone +64 9 374 9000
https://www.fonterra.com/nz/en/
investors.html
Auditor
KPMG
18 Viaduct Harbour Avenue
Auckland 1010
New Zealand
Farmer shareholder
& supplier services
Freephone 0800 65 65 68
60
Drysdale Farm,
Hawkes Bay
61
Drysdale Farm,
Hawkes Bay
insightcreative.co.nz
FONTERRA116_AR
Fonterra Annual Review 2023
Arotake-ā-tau Te Mātāpuna
fonterra.com