Fonterra's capital return sends a mixed message

Fonterra's capital return sends a mixed message
Fonterra's new story - selling assets, returning capital and still investing in value-add - is testing shareholders. (Image: Supplied)
Rebecca Howard
Fonterra is sending mixed messages to investors by announcing plans to return $1 billion to farmers from asset sales but also to invest in more value-added processing, says one of its largest shareholders.The dairy cooperative took great pains in its earnings announcement today to lay out its plans to invest in extracting more value from New Zealand milk in its strategy out to 2030.However, it also envisages at least $1b in capital returns for shareholders by the 2024 financial year.It was the capital return that surprised Colin Glass, chief ex...

More Primary Sector

Job cuts on the table at embattled BX Foods
Primary Sector

Job cuts on the table at embattled BX Foods

The meat processor operates a plant in Oamaru.

Riley Kennedy 25 Jul 2024
Foresta parts ways with managing director Ray Mountfort
Primary Sector

Foresta parts ways with managing director Ray Mountfort

The company assured shareholders plans for a biomass plant in Kawerau are on track.

Greg Hurrell 25 Jul 2024
NZ raises its concerns with EU over deforestation regulation
Primary Sector

NZ raises its concerns with EU over deforestation regulation

The regulation is tipped to pose “quite significant burdens”.

Riley Kennedy 25 Jul 2024