Miles Hurrell, Chief Executive at Fonterra Cooperative Group, the world’s biggest dairy exporter, said in a statement on Thursday, his company is focusing on extracting greater value from its New Zealand milk amid strong global demand, as it seeks to divest more offshore assets, per Bloomberg.
Key quotes
Fonterra will review ownership of its two overseas milk pools in Chile and Australia, the Auckland-based company said Thursday after it published full-year results. The Chile businesses will be sold while Fonterra is considering an IPO for its Australian operations “with the intention that we retain a significant stake.”
“Put simply, the world wants what we’ve got — sustainably produced, high-quality, nutritious milk.”
“This comes at a time when we see total milk supply in New Zealand as likely to decline, and flat at best.”
“Customers want to know where their food comes from and the environmental impact it leaves, and a farmer’s livelihood relies on a stable climate and healthy ecosystems.”
While New Zealand is already “the lowest carbon producing dairy nation on the planet,” Fonterra aims to be net-zero carbon by 2050.
Market reaction
NZD/USD is little impressed by Fonterra’s headlines, as it sheds 0.30% on the day to trade at 0.6987. The US dollar is preserving the post-Fed gains while the risk-on sentiment is seen taking a minor hit, as of writing.
