Fonterra: 'significant cost' from high energy prices

Fonterra is the largest company in NZ and a major energy user. (Image: NZME)

Fri, 09 Aug 2024

Fonterra and its shareholder farmers are incurring significant extra costs due to high energy prices, which have been blamed for a string of manufacturing sector closure announcements this week.According to data from the Electricity Authority, wholesale electricity prices were trading above $800/MWh on Thursday, up from about $150/MWh a year ago.The sustained high prices, due to low hydro lake levels and a shortage of gas, have taken their toll on the manufacturing sector in particular, with Pan Pac becoming just the latest company to announce...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Markets Market Close

NZ sharemarket down 0.5% amid PGW shuffle

The S&P/NZX 50 Index closed at 13,276.99, down 74.93 points or 0.56%.

Graham Skellern 6:10pm

Primary Sector

PGG Wrightson chair and deputy ousted

The company's annual meeting was in Christchurch on Tuesday.

Riley Kennedy 3:08pm

Economy

Reserve Bank to ease mortgage loan-to-value ratios

The bank is relaxing LVR settings from the start of December.

Rebecca Howard 1:37pm

Reserve Bank to ease mortgage loan-to-value ratios

Sponsored

Diversification has never been more important, says award-winning fund manager

Harbour Asset Management

Sponsored

The risks of powering New Zealand’s data boom

Sydney has curbed data centres to save power and water. Can New Zealand plan more wisely?

Dentons

More Infrastructure

Infrastructure

'Meth' ministry moves: staffing data sought for four-way merger

Work is progressing on a four-ministry merger with the pejorative nickname ‘Meth’.

Dileepa Fonseka 5:00am

Infrastructure

Aratere sold for scrap, price deemed commercially sensitive

The Aratere ferry has been sold to a specialist recycling shipyard in India for an undisclosed amount.“Details of the sale price are commercially sensitive,” Duncan Roy, executive general manager of Interislander, said. The ferry was retired last August to make way for the port...

Rebecca Howard 10 Oct 2025