Fonterra to spend $100 million to lift capacity in Australia

Fonterra CEO Theo Spierings. Photo / File

Fonterra is looking to spend $100 million in Australia immediately to "de-bottleneck" its plants.

Chief executive Theo Spierings unveiled the growth plans during the co-operative's annual meeting at its Whareroa site in Hawera yesterday.

Fonterra Australia had reached full milk-processing capacity at two billion litres and the expansion would provide a further 500 million litres of capacity. The opportunity to introduce a co-operative model was also being evaluated.

Priorities outlined for 2018 included protecting its market share of New Zealand milk, delivering "double-digit" foodservice diversified growth, revitalising the Anlene brand, delivering China and the Beingmate partnership "at full potential" and growing the Australian milk pool share.

The co-operative has repeated its 2017-18 season forecast farmgate milk price of $6.75, bringing the forecast total available for payout to $7.20-$7.30.

Two new directors have been elected to Fonterra's board, along with incumbent director John Monaghan.

Brent Goldsack, of Matangi, who has farming interests in the Waikato and Manawatu, is a chartered accountant.

Andy Macfarlane, from Ashburton, has extensive farming interests in Mid Canterbury and also runs a rural and farm advisory business. He is a director of AgResearch and Ngai Tahu Farming and a councillor of Lincoln University.

Ian Farrelly, David MacLeod and Leonie Guiney retired from office effective from the conclusion of the meeting. Mrs Guiney, who was up for re-election, did not get through the new selection process.

Shareholders Glenn Holmes and John Gregan have been elected unopposed to the directors' remuneration committee, while Taieri dairy farmer Ad Bekkers was elected unopposed to represent Otago on the Shareholders' Council.