Fonterra Co-operative Group, the world's largest dairy exporter, has set targets of becoming the No1 dairy player in China and doubling its business in the country to $10 billion within the next five years.
A proposal to slash the size of the Fonterra board from 13 to nine came in for hot debate by shareholders at the co-operative's annual meeting yesterday in the small Waikato town of Waitoa.
Dairy giant Fonterra says its net profit after tax came to $506 million in the year to July 31, up 183% from the previous year's profit, and has raised its forecast payout for the current season.
Fonterra has cut its forecast farmgate milk price for the current season to $4.50 a kg of milk solids from $4.70 because of volatility in world markets caused by oversupply, with much of it coming from New Zealand.
Fonterra says it has cut its milk volume forecast for the 2014-15 season to 1,532 million kg of milksolids, reflecting the impact of dry weather on production in recent weeks.
Fonterra's New Zealand collection is 4% higher for the season to date but the dairy co-operative issued a warning about the effect dry conditions were having on the east coast of the South Island.
Independent Mid Canterbury dairy company Synlait increased lifted its profit 70% to almost $20 million for the full year, meeting its downgraded profit forecast made in May.
The New Zealand Markets Disciplinary Tribunal has fined Fonterra $150,000 for breaching continuous disclosure requirements to the NZX during the dairy manufacturer and exporter's botulism false alarm last August.
Fonterra's forthcoming first-half financial result will come under close scrutiny this week from analysts and farmers alike, including expectation of a revision in financial guidance.
Fonterra said it had accepted charges laid against it by the Ministry for Primary Industries (MPI) over events that led to last year's precautionary market recall of whey protein concentrate.
Fonterra has hiked its forecast farm-gate milk price to a record $8.65 per kg of milk solids, with the 35c increase equating to an increase in dairy incomes of about $600 million.