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Fonterra - Source: ONE News -
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At its annual meeting yesterday, Fonterra said its balance sheet is in the best shape it has even been but its sustainability record still needs work.
And the co-op argued that New Zealand's need for offshore capital doesn't mean the country should give away control of its farms and productive resources.
Chief executive Andrew Ferrier said there's nothing wrong with a degree of foreign investment in New Zealand but "our farmland is really our competitive advantage and I don't think Kiwis want to see that sold off shore".
Ferrier told NZI Business that New Zealanders want to keep the majority of their land in Kiwi hands.
"Every country protects certain precious resources and I think New Zealand has to think of farmland that way."
He said in China they are leasing long-term, small quantities of land because "the Chinese want us to".
Ferrier said Fonterra can compete with anybody and is very confident in terms of its ability to convert milk into added value products all over the world.
He said New Zealand and Fonterra are known as clean and green but the company knows it needs to keep raising the bar. Fonterra has reduced energy consumption per unit of production by 14% in the last four to five years he said.
"It's a journey and we're going to keep working on it."
But he said carbon footprint for dairying in New Zealand is significantly below what it would be for most countries in the northern hemisphere and it would be wrong to punish local dairy producers.
It's already hitting our farmers, Ferrier said, adding that Fonterra this year will pay $25 million in carbon tax or emission credits.
He said the company doesn't have to worry about further reducing debt and good commodity prices are offsetting a much stronger Kiwi.
Yesteray, the New Zealand Institute of Economic Research
estimated
current regulations requiring Fonterra to supply up to 600
million litres of milk a year to independent processors are costing
the local eonomy up to $450 million.
