KEY POINTS:
Dairy co-operative Fonterra is forecasting a payout this season of $6.90 a kilogram of milksolids, an increase of 55 per cent on last season. In November the board unveiled plans for a capital restructure aimed at ensuring access to future capital for global growth, protect against farmers deciding to cash in shares and to provide them with more investment options.
The preferred option would retain the co-operative but create a new company to hold all the assets which would eventually be listed on the stock market.
The first farmer vote on the plans is due in May.
How would you describe 2007 for your company?
I'd say it was a pretty big year. I think the principal thing is that we were able to get the highest payout in the history of the industry for our farmers and that's obviously a wonderful outcome.
What was the company's greatest achievement?
Overcoming a strong kiwi dollar to get such a high payout is a good achievement.
And greatest disappointment?
It's wonderful to have a huge surge in commodity prices but the fact that our profits get squeezed at a time like that is clearly a disappointment and we're continuing to work to ensure that our profits become less volatile with the commodities as time goes on.
What will be the major challenges in 2008?
One is clearly that we would like to get our capital structure vote over the line in May and inside the business we're really hoping for a year of strong growth, particularly in our international value-added ingredients business. I guess it's more of a priority than a challenge.
What was the most interesting business story of 2007?
One of the interesting stories that's caught my attention is the current takeover battle in Australia and globally between BHP Billiton and Rio Tinto. It's the scale of it. It's a $150 billion purchase.
