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Dairy exporter Fonterra to invest $2.7 billion to grow, cut emissions -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The Fonterra logo can be seen at the Fonterra Te Rapa Plant near Hamilton, New Zealand on August 6, 2013. REUTERS/Nigel Marple/File Photo

Fonterra Co-Operative Group Ltd., the largest dairy exporter in the world, announced Monday that it will invest NZ$4billion ($2.72billion) to transform milk into high-value products and pursue growth.

According to its chief executive and chairman, the New Zealand-based company expects to pay NZ$1 Billion to investors in the coming decade due to asset sales and expected earnings growth.

Fonterra (the owner of the Anchor, De Winkel and Mammoth brand names) also hopes to attain net zero carbon status by 2050.

Following approval by its 10,000 shareholder farmers last week, the company has now released the roadmap.

The firm’s dairy products have seen high demand despite limited global supply. They expect this to continue in the short- to medium-term. It may also consider an initial public sale of the Australian business. This could yield approximately $700,000,000 to shareholders by 2024.

Fonterra stated that it plans to increase its dividends steadily to approximately 40 New Zealand cents per share by 2030. Fonterra paid 15 New Zealand Cents per share last year.

($1 = 1.4706 New Zealand Dollars)

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