Fonterra Australia lifts profit

by | Mar 22, 2023 | Australia, News

Fonterra Australia’s profits jumped 25% in the six months to 31 January 2023 with the performance attributed to strong global prices for cheese and protein products, offsetting the rising cost of milk. Fonterra Australia’s managing director Rene Dedoncker said the profits were achieved despite falling milk supply and rising expenses, including hyperinflation, with a 23% increase in expenses for the period with rising raw milk prices negatively impacting margins. Dedoncker said rising costs of diesel, electricity, gas and packaging have his full attention but ruled out further consolidation and rationalisation of Fonterra’s operations.

In the six months to the end of January, Fonterra’s Australian milk pool fell 2% to 66m kg of milksolids. However, the managing director said Fonterra is doing ‘reasonably well’ compared to the rest of the Australian market, blaming poor weather.