Fonterra Achieves Record Tonnages In October

Fonterra Achieves Record Tonnages In October

Fonterra exported 215,000 tonnes of product to global markets in October, setting a new New Zealand dairy export record for a single month.

The exported dairy product, loaded into 14,580 TEU containers, would stretch end to end 90km, the length of state highway between Taupo and Rotorua or Christchurch and Ashburton. It is also the export equivalent of a glass of milk for every man, woman and child in the world.

Chief Executive Officer Craig Norgate says the record month of exports meant products from Fonterra’s factories were filling one shipping container “every three minutes and fifteen seconds”.

And he predicts that a late spring flush in early November could see further dairy production and export records set meaning good news for Fonterra’s 13,000 shareholders and for New Zealand’s overall export performance.

Mr Norgate says the achievement is 48,000 tonnes better than the previous record of 167,000 tonnes set in 2001 and is the result of a huge effort across New Zealand’s largest company.

“The record tonnages are a clear example of how Fonterra is delivering benefits to its farmer shareholders – and to New Zealand – from having a fully integrated manufacturing and marketing operation.”

Mr Norgate says to put the achievement in perspective the record exports involved: Loading 14,580 TEU (20ft equivalent) containers 202 port calls 59 ships 9513 truck movements 4863 rail wagons Mr Norgate said the quality of product produced during October was also extremely high.

“It really was a great achievement. It places the company in a strong position to meet its sales targets for the year, with November also expected to deliver huge tonnages,” he says.

Mr Norgate says November’s performance will be aided by a late milk flush. Cooler than normal spring weather has delayed the company’s flush – the time of the season when it receives the highest milk flow volumes from suppliers.

“We would normally expect the flush around October 20, but this year our peak day was on November 2 when we processed 67.681 million litres, up on last year’s flush of 66.937 million litres.”

He says manufacturing plants have performed at maximum reliability with the record flows, and have achieved record throughput.

“Perhaps the most important achievement was producing the product mix for which the market is giving the best returns.”

Fonterra released its long-awaited growth strategy earlier this week, which was well received by farmer shareholders.

Mr Norgate said he was confident that once the new business plans were put in place, Fonterra would be well placed to capture even more efficiencies that would generate even better returns for shareholders and also directly benefit the country’s economic performance.

Fonterra contributes 20% of NZ’s export income.

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