Judith Swales on Fonterra’s new Global Markets business

Chief executive of Fonterra’s Global Markets, Judith Swales. Photo / Supplied

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Fonterra’s Global Markets business is a new division aimed at tackling the global and domestic challenges facing the co-op.

In other words, it’s the co-op “doing what we do best,” chief executive of Fonterra’s Global Markets, Judith Swales said.

“[We’re] evolving to make sure we keep playing to our strengths,” she told The Country Sport Breakfast’s Brian Kelly.

Over the past three years, changing conditions, both in New Zealand and abroad, had shown that the world was increasingly unpredictable, Swales said.

“Changes are rapid, supply chains are fragile – layer on top of that, climate change and its impacts – these all command our attention.”

Changes affecting Fonterra meant its milk fall was “flat to declining,” so the co-op needed to “be selective,” Swales said.

“Where do we put that milk so that it creates the most value for our farmer-owners?”

There was still good news to be had, despite this challenge, she said.

“Customer and consumer demand are growing for our sustainably, cleanly produced dairy … and we have a really clear strategy to address that demand. Global Markets is about – how do we set ourselves up as efficiently as we possibly can to deliver that.”

The Global Markets business represented around $764 million of EBIT in earnings, Swales said.

Markets within the business include New Zealand, Australia, South East Asia, South Asia, the Middle East, Africa, Europe, and the Americas.

“It gives us people in 27 countries, around 5300 people all up, 83 nationalities, and hundreds of cultures,” Swales said.

“We’re really proudly bringing to the world the best in New Zealand dairy products that support every stage of life.”

This was all underpinned by Fonterra’s quality, science, and sustainability, she said.

“It has huge potential and it’s really about how do we maximise value for shareholders on the way through.”

Meanwhile, Fonterra and Swiss food giant Nestle have formed a partnership to develop New Zealand’s first zero carbon emissions dairy farm.

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The demonstration farm is a 290-hectare property surrounding the co-op’s Whareroa site.

The project, to be run with co-partner Dairy Trust Taranaki, will examine all aspects of farm operations to reduce carbon with the aim of cutting emissions by 30 per cent by mid-2027, with a 10-year ambition of reaching net zero carbon emissions.

Projects like this were “critically important” to Global Markets, Swales said.

“Globally we know our customers are increasingly interested in the emissions profile of the dairy products that they buy.

“Fonterra is already leading in this area as one of the most emissions-efficient producers of dairy in the world.”