We believe New Zealand milk is the most valuable milk in the world and we have an opportunity to differentiate our Co-op’s milk further in the global market to earn a premium. Achieving that requires the coming together of ideas and action, and the strength of us all.

Success starts with your farm.

Innovation & Sustainability

A sustainable future for our Co-operative is core to our strategy – it’s how we create long-term value for future generations.

There’s real value in the ability of Fonterra to ensure a co-ordinated and considered approach to address rising concerns from customers and consumers around issues such as sustainability. Which is why we’re investing more than ever in innovative sustainability initiatives that will assist everything we do – from on-farm priorities to customer product use.

The Co-operative Difference framework ensures that our on-farm practices support our strategy and ensures you have the opportunity to adapt to changes at pace that works for you and your business.

Success starts with your farm.

Being part of our Co-op:

  • Guidance and recognition of sustainable practices on farm through the Co-operative Difference milk payment parameter.
  • Access to Sustainability Advisors
  • Farm Environment Planning expertise
  • Solutions and tools trialled by Living Water in collaboration with farmers, scientists and councils.
Our Strategy

Having a strong Kiwi-owned Co-operative in our dairy industry benefits generations of farmers, today and in the long term.

The strength of our Co-operative – our scale, influence, innovation, profitability and sustainability – help make farmers better off both now and into the future. Our Co-operative’s strategy is to enhance people’s lives through convenience, health and wellbeing by unlocking the goodness of NZ milk. The highest quality milk helps unlock global market access, revenue and sustainable returns. So, we’re investing more than ever in product innovation to add as much value as we can to our farmers’ milk.

Success starts with your farm.

Being part of our Co-op:

  • A strategic focus on New Zealand milk, sustainability, and innovation and science which will see us shift every aspect of our business to create more value.
  • Proven strong financial performance.
  • Value targets by 2030: - An average Farmgate Milk Price range for the decade of $6.50-$7.50 per kgMS
    - A 40-50% increase in operating profit
    - A steady increase in dividends to around 40-45 cents per share by FY30
    - Through planned divestments and improved earnings, an intended return of about $1 billion to shareholders by FY24, and around $2 billion of additional capital available for a mix of investment in further growth and return to shareholders.
Value of the Co-op Local & Global

Because we’re owned by Kiwi families, our profits come back to New Zealand. Ultimately, a strong and sustainable Fonterra leads to a stronger and more sustainable Aotearoa.

Fonterra’s strength of scale in a volatile world reduces risk and provides value to you, our customers, and New Zealand. We have had another year of strong financial results despite pandemic disruptions, as we have been able to use our robust supply chain partnerships to ensure we are able to continue to export our products around the world and maximise value to our shareholders.

Farmers are better off when they are together

 

As a member of Fonterra Co-operative, farmers can act collectively on issues that impact them; gain efficiencies through working together; and pool resources to drive continued innovation. The certainty that comes with Fonterra collecting milk and paying a maximum farm gate milk price has led to greater investment and optimisation of on-farm assets by farmers, improving productivity.

Success starts with your farm.

Being part of our Co-op:

  • Profits come back to New Zealand
  • Benefits Kiwis today and tomorrow
  • Our robust supply chain ensures we’re able to maximise shareholder value.
  • Pooled resources drives continued innovation
Financial Tools Investment & Options

Fonterra ensures farmers get a fair price for their milk.

As a Co-operative, Fonterra is incentivised to look after farmer owners and return the maximum value to them. Farmers who belong to Fonterra ensure they’re paid a fair price for their milk, whatever the economic or market conditions. 

Fonterra’s farm gate milk price sets the benchmark in New Zealand. It’s the maximum sustainable price we can pay and the method we use to calculate it is transparent. Using our collective knowledge and skills, we’re able to provide a range of innovative financial tools to help you manage your business. Our financial tools were designed specifically with input from our farmers, so you can instantly track shares, investments, rewards and explore finance options to have more certainty about income today, and your returns tomorrow. 

Success starts with your farm.

Being part of our Co-op:

Access to financial tools like: 

  • Fixed Milk Price – fix the price for a portion of your milk supply to help provide income certainty for the season.
  • Invest As You Earn – use your milk cheque to buy shares.
  • Smart Finance – Fonterra-exclusive short-to-medium-term financing option for financing the purchase of specified goods or meeting compliance costs.
  • And many more
Tools & Support

Farm Source’s tools and services are constantly evolving to meet farmers’ changing needs. Our farmers have access to support and services; and tools to view and compare key business data, making it easier to manage the challenges of efficient milk production on farm.

For example, we’re working with farmers to create Farm Environment Plans free-of-charge and we’ve made unique emissions profile reports available to all our New Zealand farms. 

Success starts with your farm.

Being part of our Co-op provides exclusive access to:

  • Milk Quality Experts 
  • Sustainable Dairying Advisors 
  • On Farm Excellence vet team 
  • On Farm Technology 
  • Technical advice and support from Technical Sales Reps (TSRs) 
  • Free Farm Environment Plans 
  • Exclusive seasonal deals on farming essentials 
  • Valuable rewards redemptions
  • Co-op deals and discounts on fuel, insurance, energy and more 
  • Community hubs for events, training and connecting