5 July 2004
Fonterra Sets New Collection and Sales Benchmarks in Record-breaking Season
A greater ability to match production to market needs has contributed to Fonterra setting new milk collection and
ingredient sales benchmarks during a record-breaking 2003/04 season.
Chief Operating Officer Jay Waldvogel says a record spring peak volume of 70 million litres a day and good Autumn grass
growth underpinned record milk flows in the past season.
Fonterra collected more than 14 billion litres of milk, the equivalent of 1,201 million kilogrammes of milksolids. The
amounts exceeded the previous best performance in 2002/03 by 4.6%.
"Overall, we collected more milk, sold more milk products and generated more revenue than we have ever done previously,"
Mr Waldvogel says.
Fonterra Ingredients sold a record 2,442,000 metric tonnes of product in 2003/04, beating the previous mark of 2,390,000
metric tonnes in 2002/03. Ingredients sales generated revenues of USD$5.1 billion for the season, exceeding the previous
record of USD$4.4 billion for 2002/03.
The achievement followed a record year-end performance in sales of more than 250,000 metric tonnes during May, earning
NZ$1 billion. Both figures are a record for a single month.
Mr Waldvogel says Fonterra decided more than a year ago to drive down and tightly manage its inventories. That created
an environment where the Co-operative could work towards its product receiving the best price in the international
market.
"We have a clearer view of demand, better management of inventories to meet that demand and a much greater ability to
match production to market need. We are also sourcing third party supply to complement our New Zealand production,
adding significantly to our ability to meet customer demand."
"And we have achieved this excellent performance while the market and prices have remained stable."
Mr Waldvogel says the basis of Fonterra Ingredients' success has been the platform of excellent planning and execution
complemented by a superb performance by the entire supply chain. "The results have been outstanding and are a credit to
the work and commitment of the entire Fonterra Ingredients team.
"This benchmark season shows the potential of Fonterra coming through," he says.
ENDS