Fonterra, New Zealand’s largest dairy cooperative, reported an 8% rise in its first-half net profit, reaching $729 million, supported by a 14% revenue growth. The cooperative announced a dividend of 22 cents per share and set a farmgate milk price forecast at $10 per kilo. CEO Miles Hurrell remains confident in securing a trade deal with India, aiming to expand market reach.
Fonterra, a multinational dairy cooperative headquartered in Auckland, is a major player in the global dairy industry. The company collects, processes, and exports dairy products worldwide, with a strong presence in Asia, the Middle East, and the Americas.
Financial Performance and Market Strategy
Alongside its profit growth, Fonterra announced a dividend of 22 cents per share and set a farmgate milk price forecast at a midpoint of $10 per kilo. The cooperative’s strategic adjustments, including efficiency improvements and strong international demand, have contributed to these positive results.
Despite challenges in global dairy markets, CEO Miles Hurrell remains optimistic about securing a trade deal with India. This potential agreement would enhance Fonterra’s access to one of the world’s fastest-growing dairy markets, creating new opportunities for expansion.
Focus on India’s Dairy Market
India is the world’s largest producer and consumer of dairy, but its trade policies have historically restricted foreign dairy imports. Fonterra is working to strengthen its ties with India’s dairy industry and policymakers, seeking mutually beneficial trade arrangements that could open doors for New Zealand’s dairy products.
Hurrell emphasized that India presents a significant growth opportunity for Fonterra, aligning with the cooperative’s long-term strategy to expand its footprint in high-potential markets.
Fonterra’s robust financial results and ongoing market expansion efforts indicate a strong growth trajectory for 2025. As discussions around a trade deal with India progress, the cooperative is positioning itself for further success in the global dairy industry.
