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BusinessNZ – National direction in support of growth

Source: BusinessNZ

BusinessNZ welcomes the Government’s proposed consultation on national direction under the Resource Management Act, as a step towards a better planning system.
BusinessNZ Chief Executive Katherine Rich says the proposed updates in direction on infrastructure, renewable energy, housing, mining, and primary sector development, recognise New Zealand’s need both to grow the economy and protect the environment.
“This is the most comprehensive overhaul of national direction we’ve seen, and it reflects many of the changes BusinessNZ has advocated for. We’re encouraged by moves to simplify consenting for energy, housing and farming, and to replace overly complex freshwater rules that have frustrated producers without delivering better environmental outcomes,” Mrs Rich said.
BusinessNZ supports the intention of transitioning these changes into a new RMA framework based on clearer property rights and long-term certainty to encourage investment and growth.
“We look forward to engaging constructively during consultation to help ensure the final package delivers on its promise to reduce red tape, restore balance, and support economic recovery,” Katherine Rich said.
The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
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Federated Farmers welcomes freshwater regulations review

Source: Federated Farmers

Federated Farmers applauds the Government’s announcements today on a comprehensive review of freshwater regulations.
“We’re pleased to see all options are on the table and that consultation will be open until 27 July,” Federated Farmers freshwater spokesperson Colin Hurst says.
“The previous Government’s freshwater rules were completely unworkable for farmers. In some cases, even if you converted a whole catchment to native forest, you still wouldn’t have achieved the bottom lines.
“The current Government simply had to push pause on these rules – and now we’re seeing steps towards more sensible national direction to local authorities.”
Hurst says it’s particularly welcome that the Government wants a more balanced approach to Te Mana o Te Wai.
“That concept, as pursued by the previous Government, has been unworkable and highly problematic.
“It was unclear how councils should interpret and apply what was a vague concept of protecting the mana and mauri of water under Labour’s rules, and what that might mean for our farms and rural communities.”
Under Te Mana o te Wai, the health and wellbeing of water is put ahead of all other considerations, including human health, and social, cultural and economic wellbeing.
“That seems wildly imbalanced. The Government’s announcements today recognise such a strict hierarchy is flawed.”
The consultation document says: “Multiple objectives require councils to provide for multiple outcomes and can better reflect the interests of all water users.”
“Federated Farmers absolutely agrees with this. In fact, we believe it’s worth considering whether Te Mano o te Wai is a concept that should be scrapped altogether, which is one of the options now on the table,” Hurst says.
Another big question is whether it’s worth making these freshwater changes right now under the current Resource Management Act (RMA), or if this should wait until the Government has reformed the RMA, with the freshwater changes to follow.
“Federated Farmers will be reading through the detail of today’s announcement and going back to the Government with our position, on behalf of our members, in the next few weeks.” 
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Work and Education – Kiwi apprentice finds global opportunities through Plumbing apprenticeship

Source: Into Work

Hamilton apprentice Keegan Calkin has discovered that plumbing is more than just fixing pipes and drains—it's a global career with endless opportunities.

Now in his fourth year of a dual trade apprenticeship, Keegan has moved from his family business to international competitions and humanitarian projects, broadening his skills and perspectives in ways he never imagined.

The 20-year-old recently received an invitation to the International Water, Sanitation and Hygiene Foundation (IWSH) Plumbing Champions initiative in Frankfurt, Germany. “It was the right place, right time. I got an email asking if I wanted to go to Germany, and I thought, 'Absolutely, why not?'” Keegan said.

The initiative was not a competition but a platform for sharing and learning global plumbing practices. It brought together plumbers from around the world to exchange ideas and techniques. Keegan was particularly impressed by Germany's advanced technology and manufacturing capabilities. “Their technology is incredible. Everything is made there, and it's right at their fingertips. It made me realise how far behind New Zealand is in some areas,” he said.

Keegan's international experiences extend beyond Germany. He spent three weeks in Tonga, working on the construction of a Mormon temple. “We've built temples in Hamilton and Auckland, and our company runs the project in Tonga. It was a fantastic experience,” he said.

“I didn’t really expect I could work overseas especially just starting out in my apprenticeship but I’m keen to see where it goes.”

Keegan's journey into plumbing began as a family affair, following in the footsteps of his grandfather, father, and uncle. He now works for his father’s company, FB Hall & Co., one of the largest and most established plumbing firms in Hamilton with over a 100 year history, and a host business of ATT, part of the IntoWork Group.

His apprenticeship is a comprehensive 5-year course that includes plumbing, gas fitting, and drain laying. Despite being an apprentice, Keegan is given significant responsibility and independence. “ATT check in with me regularly to ensure I'm on top of my coursework, assessments, and assignments but I work for myself most of the time,” he said.

ATT Account Manager Kim Dunn highlighted the transformative impact of these international experiences. “Keegan wasn't overly excited at first, but once he got there, it was the best thing he ever did. It was an incredible experience that has broadened his horizons,” Kim said.

Keegan's exposure to global practices has inspired him to consider working overseas in the future.

Beyond his professional development, Keegan balances his apprenticeship with his passion for drum and bass music. “I play guitar, but I'm mainly a drum and bass DJ. I've been involved in the music scene for about a year,” he said.

Kim emphasised the importance of pursuing personal interests alongside professional growth. “It's crucial to remind our apprentices that the world is full of opportunities. We have a supportive team of 40 staff, and we encourage them to explore and grow both personally and professionally,” she said.

Keegan and his partner are planning a trip to Europe next year, and he hopes to reconnect with the international connections he made during his time in Frankfurt. “We're trying to save up for a trip to Europe next year. I'm excited to catch up with some of the guys I met in Germany,” he said.

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RMA Protections – Roadblocks removed for quarry sector

Source: Aggregate and Quarry Association of NZ

The quarry sector is pleased its concerns have been heard about existing RMA national directions stymying access to the rock and sand resources needed to build homes and roads.
Aggregate and Quarry Association (AQA) CEO Wayne Scott says he’s relieved to see today, the Government’s package of proposed amendments to RMA instruments include several targeted at the extractive sector.
“We have been saying to this and the previous Government that changes were needed to existing National Policy Statements on Highly Productive Land, Freshwater Management and Indigenous Biodiversity.
“While the changes were mostly minor, some existing wording was leading to bizarre outcomes such as quarries being told it could extract aggregate but not remove any of the overburden above it.”
Wayne Scott says what the Government is now proposing will also allow for net positive environment outcomes and deserves to be welcomed.
“Currently, quarries sometimes seek consent applications such as where a piece of bush is needed for an extension but they have to be declined even when offering to plant several times the amount of affected land.”
He says his sector has not sought to reduce environmental outcomes.
“Through the Fast-track Approvals legislation and these amendments, we have stressed we are after certainty and speed not environmental degradation.
“Our industry has worked for years to improve our environmental credentials and relations with our communities. We see these latest changes as helping both the environment and those communities who want the resources provided for their homes and roads.”
He says on average one kilogram an hour of aggregate, rock and sand is accessed for every New Zealander.
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Health Access – New data shows strain on addictions services – NZ Drug Foundation

Source: New Zealand Drug Foundation

New data shows a need for increased investment in addiction services, with long wait times and people being turned away from services despite increased need in the community, the NZ Drug Foundation says.

Data released today by the Mental Health and Wellbeing Commission shows that out of all people using specialist mental health and addictions services, 25.4% were accessing addiction services – despite addictions only receiving 9.1% of total mental health and addiction funding.

NZ Drug Foundation Executive Director Sarah Helm says it shows a sector punching above its weight but badly overdue for increased funding, especially in light of a recent surge in methamphetamine use.

“People working in our addictions sector are doing heroic work with the resources they have, but this data shows we need significant investment into services to make a difference for communities reeling from drug harm, particularly in light of a recent doubling of methamphetamine consumption,” she says.

The data shows that there is significant strain on services. Wait times are getting longer and declined referrals have risen from 4.7% in 2019/2020 to 8.6% in 2023/2024.

“There has been a long-term under-investment in addiction services. If we don’t address it, the issues we’re currently seeing with methamphetamine are only going to get worse,” says Helm.

“In the face of the extraordinary methamphetamine harm in the community, the professionals trying to address addiction need more than a hope and a prayer – they need investment and more people being trained into the sector.”

“Anyone whose drug use is becoming risky or difficult for them to manage needs to be able to access specialised treatment and harm reduction. That proportion of people is likely to be a lot higher than the 0.9% who are currently able to access addiction services,” she says.

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Weather News – Strong winds in store for the long weekend – MetService

Source: MetService

Covering period of Thursday 29th May – Monday 2nd June – Strong winds in store for the long weekend.

Today (Thursday) the upper North Island sees squally thunderstorms with very gusty winds and hail as a low pressure system crosses quickly overhead. MetService has a Strong Wind Watch in place for Northland this afternoon and evening.

MetService Meteorologist Michael Pawley adds, “Strong gusts are expected with these thunderstorms in this pocket of unstable air. The most significant activity will be in the second half of the day. Our experts are keeping a close eye on it.”

On Friday, strong southwesterly winds arrive as the low pressure system blows off to the east. For most, this means the arrival of clear skies and dry conditions, but rain will persist for Southland and Westland.

However, for the lower South Island, these winds drag cooler temperatures, showers, and even snow falling as low as 600m on Friday. This will be welcome news for avid skiers and snowboarders but is likely to affect alpine roads in the South Island including Milford Road, Crown Range and Lindis Pass. With the first day of meteorological winter on Sunday, we’ll be seeing more of this.

MetService has a Strong Wind Watch for Hawke’s Bay and the Tararua District, as well as Southland, including Southern Fiordland, Clutha, Dunedin and Stewart Island from Friday afternoon.  

Michael details “There is a high chance that these will be upgraded to Orange Warnings. Winds will peak on Saturday, so tie down your trampoline and drive carefully if you’re heading away for the long weekend.”

For those planning a beach getaway, these winds will build large southwest swells which will be felt throughout the weekend. The most exposed coastlines include the lower and western South Island, and the western North Island all the way up to Northland.  

Michael notes “Monday will be the pick of the long weekend. The winds look to calm so it’ll be the best day to head outdoors.”
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Government Cuts – Govt squeeze forces Waka Kotahi to cut women’s jobs – PSA

Source: PSA

Government cuts are forcing Waka Kotahi NZ Transport Agency to severely undermine its own capabilities with a proposal to cut over 15% of its admin and support staff – the majority of whom are women.
The change proposal revealed today proposes a net loss of 18 out of 110 roles among team administrators, personal assistants, and office support people, with 85% of the affected roles filled by women.
“These staff book travel, support tender processes, arrange meetings, manage diaries, run reception, look after postage, and more tasks that are essential for keeping an office running,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
Affected PSA members fear the proposed cuts would make it impossible for the organisation to have clear and consistent internal processes. The workload of remaining support staff would increase, and other teams would be forced to do their own admin support on top of their current work.
“We’re already seeing this play out in the health sector: nurses and social workers picking up the work of cut admin staff. The same thing will happen here,” said Fitzsimons. “When you cut essential workers, someone else will have to pick up their work.”
This proposal is the latest example of Government cuts disproportionally affecting women. It comes days after the Department of Conservation’s proposal to cut 84 support roles, and two weeks after the Government cancelled 33 pay equity claims, including those for admin workers in the public service.
“The Government has overlooked and undervalued admin and support workers, disparaging their valuable mahi as inessential and unskilled ‘back office’ work. So, when the Government squeezes funding, their livelihoods are put at risk,” said Fitzsimons. “It’s this kind of sexist bias that created the need for pay equity claims in the first place.”
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand's largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.
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Choose Clean Water Statement: “Don’t be fooled” Govt’s freshwater reforms means more pollution in your water and commercial control of public resources

Source: Choose Clean Water – Tom Kay


Freshwater campaigners are saying “don’t be fooled” by the Coalition Government’s rhetoric in today’s freshwater policy announcement. What it really means for New Zealanders is more pollution in rivers, lakes, and drinking water sources and the handing over of more power to commercial interests to control a fundamental public resource.

The Coalition Government made its long-awaited announcement on freshwater policy reform today and Choose Clean Water’s spokesperson Tom Kay says it confirms what has been feared. 

“Ministers are using comforting words like “balance” but the details of this policy demonstrate that this is not about balance or protecting the public. The Government is proposing to remove existing bottom lines and change the long overdue prioritisation of the health of people and waterways provided by Te Mana o Te Wai.”

“Don’t be fooled, this is a massive blow for the health of our water and the health of our communities.”

Te Mana o te Wai is a vastly improved decision-making framework in the existing National Policy Statement for Freshwater Management 2020. It requires regional councils to provide for the protection of the health of waterways and the health needs of people (i.e. access to safe, good quality drinking water) before commercial uses can be considered. It was strengthened following the failure of previous National Policy Statements in 2011, 2014, and 2017 to improve the health of freshwater in New Zealand, and widespread public support for the Government to act.

“What Te Mana o te Wai finally provided, in the 2020 version of our national freshwater policy, was sufficient weight to the public interest and need for healthy water. Before this, people’s drinking water and waterways were regularly losing out to commercial pressures, which we saw result in sick rivers and lakes, the drying up of rivers and groundwater, and undrinkable water sources around the country.”

“In the 2020 national policy statement, it was finally recognised that communities couldn’t continue like that—it was unstable, unsustainable, and unhealthy.”

The group says Minister Hoggard’s ACT party has consistently misrepresented Te Mana o Te Wai and used race-baiting to generate misguided anger towards a policy that protects all New Zealanders.

Leader of the ACT Party, David Seymour, has stated that Te Mana o te Wai is “the same as waving crystals over the water to drive out evil spirits, and it’s truly bonkers.”

“This is not only nasty and insulting but it’s also plain wrong,” says Kay. 

“Te Mana o te Wai is simply a framework that says we have to ensure our water is healthy enough to support itself and our people before it can support commercial interests. It doesn’t rule out business—it just says that business can’t occur at the cost of our communities’ health.” 

Previous consultation on changes to freshwater policy under the Resource Management Act demonstrated most regional councils support Te Mana o te Wai. 

“Not only that, groups from Water NZ to Seafood NZ to Forest & Bird to public health advocates support Te Mana o te Wai because it makes priorities clearer for decision makers and provides better protection for the health of waterways and people.”

Minister Hoggard and Minister McClay’s announcement is consistent with the Coalition Government’s approach to handing over more power to extractive commercial interests and removing basic protections for New Zealanders. 

“Polluting industries have massively influenced this freshwater policy. The Government is following the requests of groups like DairyNZ who have asked the Government to remove bottom lines and for industry control of instruments like farm plans. This Coalition Government is captured by big industries, we saw it with tobacco and now we’re seeing it with agribusiness.” 

Choose Clean Water says it’s important for the public to make submissions on the changes (these can be made until 27 July 2025) but it’s just as important for the public to contact MPs and Ministers directly to voice their opposition. 

“We have a good existing national policy statement for freshwater. It puts us all on the path to restoration and health over time and still allows for productive land use to support communities. The Coalition Government is making changes New Zealand simply doesn’t need and that will take us backwards.”

Notes: Last year, the Government made amendments to freshwater legislation through the Resource Management (freshwater and other matters) Act. This Act removed the application of Te Mana o te Wai from resource consent decisions, among other changes. Submissions on this Act give important insight into the support for Te Mana o te Wai and its hierarchy of obligations. We provide quotes and links below for your reference.

Te Uru Kahika (Regional Councils)

  • “All councils support the fundamental concept of Te Mana o te Wai.”

  • “Most councils strongly oppose excluding the hierarchy of obligations within the NPS-FM from resource consent processes, on the basis that it plays a fundamental role in addressing water quality and quantity challenges, is deeply embedded into regional planning instruments and will potentially undermine te Tiriti principles.”

Greater Wellington Regional Council

  • “We oppose the removal of TMoTW hierarchy from consent decision making. There is little evidence that the Hierarchy of Obligations is causing a significant issue for consent decision making. As per the Ministry for the Environment’s analysis, few applications are known to have been declined on this basis, and they would likely have been declined on effects under the RMA regardless. Greater Wellington has not declined any resource consent applications on this basis.”

Seafood New Zealand submission:

  • “…we do not support the removal of regulations that ensure the sustainability of our natural resources.”

  • “We are concerned that the Bill seeks to repeal clauses that act to reduce the sediment loading in freshwater and therefore the coastal environment. Research has demonstrated the importance of coastal environments to the productivity of our inshore fisheries and the long-term negative impacts that land-based effects, especially sedimentation have on these sensitive ecosystems and fisheries resources.”

  • “We consider that there is currently insufficient importance given to manage adverse land-based impacts on coastal systems. Our industry experiences the negative effects of land-based activities directly through lower productivity and indirectly through spatial restrictions.”

  • “We therefore do not support: …All provisions which exclude the hierarchy of obligations in the National Policy Statement for Freshwater Management (NPS-FM) from resource consenting;…”

NZ Rivers Group Submission

  • “We are extremely concerned with this Bill and the changes it makes that disallow consideration of the hierarchy of obligations / Te Mana o te Wai in resource consent decisions. In our view, this poses a risk to the health and function of rivers, floodplains, and other freshwater ecosystems around Aotearoa. There may be an unintended consequence of increasing risk to infrastructure, people, and communities in removing or bypassing the hierarchy, which in our view requires communities to reconsider how they live with rivers, including their associated risks and hazards.”

The Public Health Communication Centre (PHCC)

  • “The ‘hierarchy of obligations’ is essential to reduce risks to people’s health.”

  • “We are concerned the Government (through this and other Bills) is not recognising the extent to which ecosystem health supports communities’ health, and our adaptation to and mitigation of climate change impacts.”

  • “In NZ, it has been estimated that at least 30,000 New Zealanders experience illness as a result of contaminated drinking water each year.”

  • “The current health burden on New Zealanders from water pollution means the country needs strengthened policies to restrict the extent and impact of water pollution on people’s health. However, the Bill proposes – with insufficient explanation or rationale provided by the Government – to weaken protections for drinking water under the RMA.”

  • “…the Bill, as well as other changes signalled by the current Government, would reverse this protection for drinking water recommended by the [Havelock North] Inquiry and established in law by the NPS-FM 2020.”

NZ Planning Institute

  • “NZPI supports the hierarchy of obligations under Te Mana o Te Wai and supports its implementation through regional plans. We also support its application to resource consent applications while the plan provisions are being developed…”

  • “In practice, the hierarchy of obligations is helpful as it provides direction on how to weigh up competing interests. If the hierarchy of obligations under Te Mana o Te Wai is taken away, decision-making will become more difficult again.”

 

The Resource Management Law Association of NZ Inc | Te Kahui Ture Taiao

  • “RMLA opposes removal of consideration of Te Mana o Te Wai from resource consent applications and resource consent decision-making processes.”

Water New Zealand

  • “Water New Zealand does not support the removal of the hierarchy of Te Mana o  Te Wai.”

  • “The Bill contains a suite of changes that exclude consideration of Te Mana o Te Wai hierarchy in resource consent decisions. There is no “problem” that these changes will solve.”

  • “However, it is clear these changes will prevent prioritisation of freshwater health and as a result, will perpetuate the existing tr

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Local News – Porirua residents to be asked their thoughts on amalgamation

Source: Porirua City Council

The topic of whether to explore council amalgamation will be included in Porirua City voting papers in this year’s local election, after a decision of Porirua City Council today.
Mayor Anita Baker put a report to the full Council today, seeking approval to add a non-binding referendum question to this year’s voting documents.
The question to be included is:
“Should Porirua City Council work with councils in Wellington, the Hutt Valley, and the Wellington Regional Council to explore the possibility of creating one single council, that combines relevant services and functions regionally, while keeping appropriate local services and decision making local?”
Mayor Baker said the last time amalgamation was proposed for the Wellington Region was 2013, and since then the local government environment had changed considerably.
“I believe it’s the right time to ask our residents what they think. We’ve had discussions across the region on whether or not amalgamation is a worthwhile idea, but we’ve never asked our people.
“This is about democracy in action. I get asked what I think, but it should be about what the residents think.
“For me it’s about local voice and keeping our local voice.”
Mayor Baker said the Government had signalled that it would support amalgamation if the movement originates from local communities.
“This referendum would provide an opportunity for the debate to be had in our city, and potentially across the region, and provide a good basis for future decision-making.”
The referendum is non-binding and if voters are supportive it will be up to the future Council, post-election, to work with other councils in the region to explore the idea, she said.
“The future Council would not be bound by this referendum, but it will provide a strong indication of residents’ support.”
After debating the issue, the Council voted nine to one in favour of including the question in the voting papers.
The local election will take place in October this year. As well as voting for the city’s Mayor and councillors, there is a binding poll on whether to retain the city’s Māori Ward.
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Results – Fonterra announces 2025/26 Farmgate Milk Price, continued strong FY25 earnings

Source: Fonterra

·         Normalised1 profit after tax: NZ $1,158 million, up 11%  

·         Normalised continuing earnings per share: 70 cents per share, up 13%  

·         Return on capital: 11% down from 11.9%  

·         FY25 full year forecast earnings range: 65-75 cents per share  

·         2024/25 season forecast Farmgate Milk Price: $10.00 per kgMS  

·         2025/26 season opening forecast Farmgate Milk Price: $10.00 per kgMS.

Fonterra Co-operative Group Ltd today provided its Q3 business update, announcing strong profit after tax of $1,158 million, up $119 million on this time last year.  

As a result of these strong earnings, the Co-op narrowed its year-end earnings range to 65-75 cents per share, at the upper end of the guidance provided in March of 55-75 cents per share.  

At the same time, Fonterra announced an opening forecast Farmgate Milk Price for the 2025/26 season of $10.00 per kgMS, driven by stable near-term market demand.  

CEO Miles Hurrell says Fonterra is committed to delivering strong shareholder returns through both earnings and the Farmgate Milk Price.  

“We’ve delivered strong shareholder returns through FY25, including a 22-cent interim dividend, and as we get closer to the end of the year, we are focused on maintaining this momentum.  

“Our forecast Farmgate Milk Price for the current season is driven by strong demand for our milk price reference products and our range is unchanged at $9.70-$10.30 with a midpoint of $10.00 per kgMS. We’re also pleased to tighten our year-end forecast earnings within the existing range, given the strength of our third quarter performance,” says Mr Hurrell.

2025/26 season opening Farmgate Milk Price  

“Looking at the season ahead, we expect this demand to continue for now, but we acknowledge the ongoing geopolitical uncertainty and the potential for a wider series of outcomes across the season.  

Therefore, our opening forecast Farmgate Milk Price for the 2025/26 season of $10.00 per kgMS sits within a wide forecast range of $8.00-$11.00 per kgMS.  

For the current season, the milk price of $10.00 per kgMS equates to around $15 billion into the New Zealand economy. The majority of this flows into regional New Zealand where it plays a strong role helping to sustain local communities.  

Business performance

Fonterra’s focus on optimising its product mix has driven a Q3 normalised profit after tax of $1,158 million, equivalent to 70 cents per share, with operating profit of $1,740 million, up $267 million on last year.  

“This result reflects the scale and ongoing strength of our Ingredients channel, and volume growth in our Foodservice and Consumer channels with each channel increasing its third quarter performance compared to the same period last year.  

“Our rolling 12-months Return on Capital is 11%, which is above our previous target for FY25 and within our long-term target range of 10-12%,” says Mr Hurrell.  

“Our full year forecast earnings range of 65-75 cents per share assumes flat earnings in Q4 of FY25 due to the seasonality of our milk collections, the higher input prices for our Consumer and Foodservice businesses, ongoing investment in our ERP system and an increase in costs associated with shaping the Co-op post divestment to execute our strategy.  

“We are heading into year end with a strong balance sheet and full year debt metrics on track to be below the Co-op’s target range,” says Mr Hurrell.  

Strategic delivery  

Miles Hurrell says a priority for Fonterra this year has been the implementation of its strategy, which deepens the Co-op’s focus on its high-performing Ingredients and Foodservice businesses.  

“Last year, we announced a step-change in our strategic direction, including a decision to divest our global Consumer and associated businesses.

“This step was grounded in an understanding of how we best create value for farmer shareholders and ultimately for New Zealand.  

“We have been thoroughly testing the terms and value of both a trade sale and initial public offering (IPO) as divestment options. This work is on track as planned and we will seek farmer shareholder approval to divest through a vote in due course.  

“Given the confidence we have in our strategy, we have strong conviction that a divestment is the right choice for the Co-op and its owners.  

“Our financial results show we have an impressive business as a global B2B dairy player, powered by our home-base of New Zealand milk and operations.  

“If we divest our Consumer business, we will still be a Co-op with global reach and scale, and a diverse product mix sold to customers in more than 100 countries.  

“By focusing on our core strengths and the sales channels that deliver the highest returns, we have the confidence to target an average Return on Capital of 10-12%, which is above our 5-year average. This is alongside paying farmers the highest sustainable Farmgate Milk Price, which we are always committed to,” says Mr Hurrell.  

Fonterra continues to target a significant capital return to shareholders and unit holders following divestment.  

1 Normalised profit after tax excludes $77 million of costs associated with the divestment of the Consumer channel integrated businesses in Australia and Sri Lanka.

About Fonterra  

Fonterra is a co-operative owned and supplied by thousands of farming families across Aotearoa New Zealand. Through the spirit of co-operation and a can-do attitude, Fonterra’s farmers and employees share the goodness of our milk through innovative consumer, foodservice and ingredients brands. Sustainability is at the heart of everything we do, and we’re committed to leaving things in a better way than we found them. We are passionate about supporting our communities by Doing Good Together.