FarmSourceOUR LINK TO THE DAIRY WORLD – FEBRUARY 2020

Farmer turned firefighter PAGE 4

New Year honours for Co-op stars PAGES 12–13

From 15 cents to 140 years dairying PAGES 20–21

TE AWAMUTU MOVES TO PELLET POWER PAGE 3

Fonterra Farm Source >>> February 2020 FarmSource

FEBRUARY 2020 COLUMNS From the Chairman 1 Message from Miles 2 From the Shareholders’ Council Chairman 15 Advance Payment Rates Dairy NZ 23 As at 5 December 2019 NEWS Te Awamutu goes coal free 3 Meet our firefighting heroes 4-5 Terms of Supply available online 6 How milk vat monitoring can help 7 2019/2020 Season Interim roadshow schedule 8 Base Advance Rate Capacity Adjustment* Gumboot up for the Tractor Trek 9 June paid July $3.80 $0.61 Fixed Milk Price back for 2020 10 Tackling a packaging problem 11 July paid August $3.80 $0.61 Double delight for dairy scientist 12 New Year honour for farming stalwart 13 August paid September $3.80 $0.61 Being the ‘possible’ to the ‘impossible’ 14 September paid October $4.15 Co-op chat 16 Irrigation lake to multisport millpond 17 October paid November $4.45 Celebrating a kiwi success story 18 Peak Period November paid December $4.65 Expanding MyMilk scheme 18 Nominations open for prestigious award 19 December paid January $4.65 A win-win for our Co-op 19 From 15 cents to 140 years of farming 20-21 January paid February $4.95 $0.61 Calves for schools 22 February paid March $5.05 $0.61 FGTPs welcomes 50th intake 22 Your photos 24 March paid April $5.20 $0.61 CONTACTS April paid May $5.35 $0.61 Contact Us 29-33 May paid June $5.55 $0.61 Understanding your Co-operative 30 Update your account details 31 July Retro $5.90 Primary ITO 32-33 August Retro $6.25

September Retro $6.65

October Retro $7.00

The Base Advance Rate payments (paid throughout the whole season) and the Capacity Adjustment payments (paid in non-peak months) total to the Farmgate Milk Price in a season.

Forecast Farmgate Milk Price $7.30

*The Capacity Adjustment Payment amount is based on the cost to Fonterra of installing an additional litre of processing capacity, the estimated peak day litres and the quantity of milk expected to be received in the peak months. For the 2018/19 seasons this results in a Capacity Adjustment Payment of $0.61 per kgMS. For more information on Capacity Adjustment please refer to the booklet on Farm Source ‘Capacity Adjustment: Making it clearer’ or contact your Area Manager.

Farm Source is produced by Fonterra. Contact us at [email protected]

Fonterra Co-operative Group Limited Private Bag 92032, Auckland, New Zealand www.fonterra.com This magazine is printed with vegetable inks on certified forest paper. ISSN 2382-2171 1 NOTE FROM THE CHAIRMAN

Happy New Year. I hope you all had the opportunity to spend some well-earned time with friends and family over the festive season. The start of 2020 has bought some extreme weather conditions, with parts of the country affected by drought, while others are flooded. It’s a tough situation for everyone on farm and I know our field teams are out in our communities pitching in where they can. The conditions are beginning to have an impact on our New Zealand milk collections. We will update you on our new milk collection forecast for the 2019/20 season before the end of February. Like me, you will be watching the effects of coronavirus ripple around the world. It reminds us how small the world is. At the time of writing this column, our Co-op’s operations and sales had not been significantly impacted by the outbreak but the situation changes daily and we are monitoring it carefully. We keep careful watch on all of these developments, as our isolated and relatively small country has always been at a geographic disadvantage when it comes to exports. Over the last few months, there have been some important geopolitical shifts. It is significant for our industry because dairy is one of the most highly protected globally traded products in the world. In a number of countries, we face barriers such as tariffs, as well as competing with local and foreign suppliers that receive high levels of support from their governments. Currently, New Zealand has access to around 12% of global dairy consumption at tariffs of less than 10%. In certain markets dairy faces tariffs in excess of 200%. We also face non-tariff barriers in the form of regulation, border testing, additional labelling requirements, and onerous import licensing requirements. In the last few weeks, we’ve had the news that the US and China have signed a phase one trade agreement, restoring a trade relationship between the two countries. The hope is that this will were small, but it does provide us with additional access to markets help to improve some of the uncertainty that has existed between including Japan, Canada and Mexico. the two countries. At the moment, it’s unclear how this trade deal Once fully implemented, the New Zealand Government estimates will affect our business. But we continue to watch for developments. that CPTPP will generate dairy tariff savings of approximately The other big news in global trade is that the withdrawal of the NZ$88.5m (this does not account for any new trade that might be United Kingdom from the European Union has been finalised. From generated due to new market access opportunities). 31 January 2020 the UK is no longer an EU member state and is Looking ahead this year, we have a national election both here in considered a separate country. New Zealand and in the US, both of which have the potential to From a trade perspective, this does alter things, but not disrupt the status quo. immediately. The UK and EU are now in a transition period until at There is no question that 2020 will bring further global trade least December, during which time the two will maintain existing disruption but I’m confident that we will remain in a strong position. trade relations. I believe we have the best milk in the world. Our unique, grass fed There is a lot of uncertainty around both of these developments, provenance means that there will be strong demand for our product. and we know that markets hate uncertainty - but with uncertainty One of the strengths of our Co-op is that we’re able to manage some comes opportunity and we have seen progress in the last 12 months. of this uncertainty and risk because we have a diverse range of The UK has said it will concurrently negotiate new trade relationships products and export markets for our milk to go into. with a number of countries, and New Zealand is firmly at the top of this list alongside Australia, the US and Japan. New Zealand’s Trade Minister David Parker is working to progress discussions with the UK on a potential free trade agreement. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into force a year ago. The gains for dairy

Fonterra Farm Source >>> February 2020 2 MESSAGE FROM MILES

The summer break not only gave me a chance to spend quality time with family and friends, it also provided an opportunity to reflect on 2019, and look ahead to 2020. We faced many challenges last year and we still have a way to go, but we also took many steps in the right direction, which is something I’m proud of. Healthy Business We have improved the underlying financial performance of the business. We’ve continued to focus on financial discipline, reducing operating expenditure and managing capital expenditure so we’re on track to spend no more than $500 million this year. We will announce our interim financial results on 18 March, so look out for a much more detailed review of our performance then. Healthy People We shifted to a new customer-led operating model and we’re already seeing positive changes in how our people are working together under our new structures. We launched new financial tools to better support your businesses, such as the Fixed Milk Price. And we’re on track to contribute approximately $11.2 billion into the New Zealand economy via a forecast Farmgate Milk price of $7.00 - $7.60, with 46c of every dollar spent supporting local businesses and local communities. Healthy Environment We set new packaging and waste targets, continued to reduce above and beyond the restrictions the Chinese Government has put manufacturing emissions at our sites, and piloted ways to move away in place as our priority is to always put our employees’ safety first. from coal. On farm, we launched The Co-operative Difference and We have ten employees in Wuhan who are in lockdown and we Plant for Good, and we worked to increase the number of farms with have employees who have stayed on-farm to continue milking our Farm Environment Plans by 50%. cows. We have put these controls in place on-farm to protect our employees, but obviously this has been very tough on those Looking ahead to 2020 individuals as they can’t get home to see their families. I’m happy to We started 2020 with momentum. We announced that we have sold let you know that to date all our employees in China are safe and our stake in DFE pharma, we’re moving out of coal at our Te well, and I’m sure you’ll join me in thanking them for the work they Awamutu site, we’ve expanded our MyMilk initiative into the North are doing in very difficult circumstances to keep our business going Island, and we’ve appointed Teh-Han Chow as interim CEO of China. over there. However, there will always be challenges that we need to keep a Here at home the drought is starting to bite. It’s tough on those close eye on. The most obvious right now being the potential impact affected, and our Co-op is helping where we can. of coronavirus and the drought. We’re working with the Northland Regional Council to transport At the time of writing, our Co-op had yet to experience any water from the Whangarei supply to Kaikohe, Kaitaia, Dargaville and significant impact on our operations as a result of coronavirus. Unlike Rawene. Our priority will always be picking up your milk, but we have some other industries you might have read about, our scheduling, managed to build these deliveries into our milk collection runs so logistics and delivery activities to all markets are largely operating as that we take a tanker full of water up and come back with milk. normal. That said, we are not taking this for granted. Meanwhile, down south our teams have been out on-farm helping We have a team of dedicated people working around the clock to to clear debris and repair fencing that was damaged in the recent ensure our people are safe, and our business can continue floods. It’s good to see the Co-operative spirit in action. If you or operating through any disruptions. Our sales teams are working someone you know is in need of support, please don’t hesitate to get with our customers to understand how coronavirus is impacting in touch with your Area Manager. their businesses, which will give us a better idea of how it may Until next month. impact ours. We do expect to see some volatility in the market as a result of the uncertainty, and we are continuing to watch the situation closely. Our people on the ground have been impacted as a result of travel restrictions in China. Aside from a skeleton crew manning our offices, most of our employees in China are working from home. This is Miles Hurrell

Fonterra Farm Source >>> February 2020 3 TE AWAMUTU MOVES TO PELLET POWER Our Co-op is taking another step forward in its commitment to renewable energy with confirmation that our Te Awamutu site will be coal free next season. Until now the site has used a combination of fuels to process milk – including coal. This latest move follows a trial last year and will see the site start the 2020/21 season powering the boiler with wood pellets instead of coal. This will reduce our coal use across the country by around 10% and our carbon emissions by around 84,000 tonnes, the equivalent of taking about 32,000 cars off the road. Fonterra’s Sustainable Energy and Utility Manager Linda Thompson says it’s an exciting step for our Co-op and, in particular, the Te Awamutu team. “It really demonstrates that sustainability, doing what’s right for the long term good, is very much at the heart of how we’re working and thinking about our future.” “Following the trial last year there were a few kinks to be ironed out, but the team at Te Awamutu and the energy team have worked together to find solutions so we’re confident we can move forward with this change.” “Our farmers are already some of the most efficient producers of milk in the world. We need to match them in making sure our manufacturing operations and wider supply chain are as efficient as possible.” Jonathan Milne and Kevin Liao during the trial at Te Awamutu last year Last year, our Co-op announced a series of environmental targets relating to coal use, manufacturing emissions and water efficiency, “We’re encouraged about the growth of the bioenergy (wood packaging and farm environment plans. pellets) industry and we’re proud to be part of something that’s Te Awamutu Operations Manager Marc Carney says the site is good for the environment and our local communities.” pleased to be playing its part in helping the Co-op meet its The project has also received $200,000 in EECA funding because manufacturing operations targets. as EECA’s Chief Executive Andrew Caseley explains, this project “We know we all have a part to play in being a sustainable Co-op fully aligns with EECA’s purpose to help decarbonise the New and I’m really proud of the work we’re doing here onsite. The team Zealand economy. is looking forward to starting next season on pellet power.” “This is the largest boiler conversion project to biofuels to date, “This change is a significant move in the right direction – it and this is why it has received funding from EECA’s technology makes up 16% of our 2030 target of a 30% reduction in absolute demonstration programme. It also has the added benefit of CO2 emissions.” establishing a more viable and large-scale wood pellet supply chain.” Following the move to wood pellets two of our 21 North Island sites will be using coal. In the South Island, where there is no viable long-term alternative, we’ve made a start with co-firing the boiler OUR MANUFACTURING at our Brightwater site with wood biomass and are working through plans to move to renewable energy at our Stirling site. ENERGY TARGETS: Linda says the Co-op knows it’s got a big challenge ahead of it to get out of coal but it’s one that it’s up for. 2020 – 20% reduction in energy intensity based on 2003 levels “There is no one single solution for us to transition out of coal. We know we can’t do it alone, that’s why working with others, like wood pellet supplier Nature’s Flame and the Energy Efficiency and 2030 – 30% reduction of carbon emissions Conservation Authority (EECA), is so important.” Taupo based Nature’s Flame will be supplying the pellets, made 2050 – from sustainable wood fibre residues from the surrounding areas. Net zero carbon emissions and on the way to 100% John Goodwin, Nature’s Flame’s Operations Manager says they’re renewable energy excited to be partnering with Fonterra.

Fonterra Farm Source >>> February 2020 4 Farming one week, firefighting the next Southland farmer Graeme Appleby is a glutton for “The people in the Richmond Valley area were very grateful for punishment. Not content with doing one ‘tour of us being there and looked after us very well.” duty’ fighting the devastating Australian bushfires, Graeme was deployed again in late January, lending a hand to the fires in Queanbeyan, east of Canberra, which presented Graeme volunteered to go back again recently. different challenges. Graeme has been a rural firefighter with the Drummonds “It was quite a bit different there. We were working on steep Voluntary Rural Fire Force near Winton for 13 years, and trained terrain, containing the fires to prevent them spreading into the hard to be cleared for his first deployment overseas. forest area.” He was part of the fleet of New Zealand firefighters sent to Graeme said the drought is also having devastating effects for New South Wales in early November to lend a hand in the battle Queanbeyan and has been especially tough on farmers in the region. against the blazes burning out of control. “One of the days I drove out of town to a stock sale, and the The Myall Creek Road fire, in the Richmond Valley area where animals looked skinny and sad – it’s a really tough time.” Graeme was based, had burnt 113,000 hectares (one hectare Michael Blomfield, Farm Source Business Development being close to the size of a rugby field) and had a perimeter of Manager for Southland-Otago says Graeme is a good sort, over 500km – around the same as going from Auckland to physically very fit, and he is sure Graeme would have pushed the Rotorua and back again – and was growing. younger firefighters along over in Australia. “The fires were huge and volatile, and there was a lot of wind. “Graeme is a much-valued member of the community. We all We were strategically back burning around communities and appreciate his efforts both in and outside of our Co-op, and I houses to try and contain them. know over in Australia they would have appreciated his help too.” “We were doing five night shifts on with one night off, working The Queanbeyan community went to great lengths to express from 6pm in the evening to 8am the next morning.” their gratitude towards Graeme and the other New Zealand “The rural fire force are a good bunch of men and women doing firefighters for their service to the community. stuff for the community, I really enjoyed helping out.” “The locals were very appreciative of what we did. In one of the On the last night in Richmond Valley before he returned home towns we went through, a couple had set up a free drink fridge for to his farm, Graeme said things were looking more positive. us on the side of the road to keep us going, and the mayor gave “There was some really nice rain over my last couple of days, us a certificate of appreciation.” and the fires died right down.

Graeme with a souvenir

Fonterra Farm Source >>> February 2020 5 THE AUSTRALIAN BUSHFIRES – MEET OUR FIREFIGHTING HEROES Recent torrential rains have dampened many of property, strengthening containment lines, and providing Australia’s bushfires, but the country continues to community support. count the cost – with an estimated 186,000 square Darren says the community spirit is something he’ll never forget. kilometres burnt, 5,900 buildings destroyed, and “The kindness of the people amazed me. We were very well one billion animals lost. looked after with all the food, drinks and toiletries you could ask Many of our Aussie people and farmers volunteer with their local for. So many goods were donated by people and businesses, emergency services organisations, and proudly fought alongside which was unbelievable. those who travelled from New Zealand, Canada and the US to help. “Firefighters from New Zealand, the US, and Canada were Jai Manning – involved, and it was great to meet and talk to everyone who came to help. Quality Co-ordinator, Spreyton – Tasmania “The best thing was seeing the look of relief on the locals’ faces Jai has volunteered with the Tasmanian Fire Service for 13 years when five fire trucks rolled up to help them out. It made it all and was deployed alongside a group from New Zealand to fight a worthwhile and is the reason why I continue to volunteer.” 14km long and 6km wide fire-front in Yeppoon, Queensland. Babs Smith – “We worked 14-hour shifts for four days, helping with Cheese plant operator, Stanhope – Victoria back-burning and to protect heavy machinery and the township – and to give the local crews a much-needed rest. Babs has volunteered in a Search and Rescue unit for over 16 “The community was really grateful to see resources come from years and has a lot of experience with bushfires. Tasmania and New Zealand, which was evident on the first day Back in 2009 she headed up a response team to assist with the when a local paid for dozen coffees as we ordered them. Black Saturday fires in Victoria, where she donated machinery to “Many approached us to say thank you, with local businesses use for fire breaks and land clearing, and also as a first responder providing bedding, food and supplies, which was incredibly involved in rescuing and caring for survivors. humbling when they had already lost so much. This time around, Babs led a team of 11, using excavators and “It’s great that Fonterra supports us by providing extra leave to bobcats to create firebreaks, fell trees and clear houses damaged volunteer, and my manager is always ready to help in case I get in Corryong in Victoria's north-east – home to a community of called up again.” dairy farms. Darren McDonald – Babs says part of her role was to check properties for those reported missing in the fires, which was the most harrowing part Process Controller, Darnum – Victoria of her work. Darren has volunteered with the Darnum & Ellinbank Fire “I got involved in search and rescue at a young age when my Brigade for 13 years and was flown in to work around Taree in sister was involved a tragic accident, which spurred me on to help New South Wales. with land and river rescues and searches. “We were tasked with a lot of different roles that changed “It can be a rewarding job sometimes, we always band together quickly depending on conditions, including protecting to make sure everyone is coping, and the sense of community is really strong.”

Jai and the team from Tasmania

Fonterra Farm Source >>> February 2020 6 NEXT SEASON’S TERMS OF SUPPLY AVAILABLE The Terms of Supply that will apply from June 1 2020 are now available online. THERE IS A SUMMARY OF THE CHANGES AT THE FRONT OF THE TERMS OF SUPPLY Charlotte Rutherford, Director On-Farm Excellence, says “the Terms of Supply are critical to ensuring the Co-op meets the BOOKLET, BUT HERE ARE THE MAIN POINTS: expectations of its customers and communities, and that • Due to improved management by farmers and the everyone is treated fairly. introduction of tanker testing prior to unloading, we’ve reduced the number of demerit points incurred “A key way we can help our farmers meet the Terms of Supply is for inhibitory substances to better reflect the risk to by making them available earlier as well as easier to understand.” the Co-op. “The Co-operative Difference is all about making it easier for • We’ve removed the separate charges for major hazards you to know what's expected today and in the future. We’ve to structures/ facilities charges. updated our Terms of Supply so that they’re simpler to read and easier to understand. • We’ve simplified the way that we report milk quality results by using a consistent grading approach across “We’ve also made the new Terms of Supply available online now all tests. Test results that are Grade A or B are within the so you can see the changes that will apply from next season.” Terms of Supply, while those that are Grade C - F and R The Co-op will continue to deliver hard copies of the Terms of do not meet the Terms of Supply and will incur Supply and Farmers’ Handbook before the start of the season. The demerits points and/or other consequences such as Farmers’ Handbook will give farmers further guidance and detail on liquidated damages. the support that is available to you to meet the Terms of Supply. • The requirements for supplying milk at the start of the Charlotte says farmers will be able to opt-out of receiving a season have been clarified to ensure that milk is not hard copy of the Terms of Supply and/or the Farmers’ Handbook. supplied from any animals within the first eight milkings. “We know that many farmers are moving away from paper • A new requirement has been introduced that prohibits documents, relying instead on electronic versions. By doing so, the supply of milk that is older than 48 hours. farmers will also be saving the Co-op money and reducing our To read the new Terms of Supply today, visit the impact on the environment.” Farm Source website.

Fonterra Farm Source >>> February 2020 7 Giving you the edge with milk vat monitoring systems

Your Co-op has started the process of installing new milk vat monitoring systems (MVMS) to support WHAT’S THE PROCESS? your production of high-quality milk and make the • You will get an email closer to your region’s installation Co-op’s milk collection more efficient. period outlining the available providers in your region. HALO, Levno, and DTS have been approved as MVMS providers • You will be asked to let us know your preference (there and so far, 20% of Co-op suppliers have let us know their will be opportunities at farmer meetings and in-store drop preference and are in the process of installation or have had their in sessions to learn more about the systems and offerings. The providers will also be available at all of the regional system installed. Fieldays). Richard Allen, Group Director of Farm Source, says the new • You will be contacted by your preferred provider to systems are part of our commitment to help make farming easier. arrange a time for installation and training. “We’re always looking for the latest technology and tools and • You’ll receive an email from us once the system is fully these systems will help you make more informed decisions and online and ready. address issues quickly, helping you to avoid lost milk or grades. By avoiding grades, you will also be a step closer to achieving recognition under The Co-operative Difference. “Whether you’re in the milking shed or out in the paddock, The Co-op ran a pilot programme last season with you will be able to monitor your vat from the palm of your hand,” approximately 80 farms in Waikato and Canterbury. Farmers says Richard. who use the systems say the benefits are clear: You can choose the type of monitoring solution that best suits • “It’s really reassuring. I can see all the information I need and your farm. The Co-op will cover the cost of the base model and if I’m not around and want to double check that the guys have you can choose to upgrade and pay your chosen solution provider turned the chiller on, all I need to do is look at my phone.” directly for any extra features. Darrell Aspin, Canterbury While HALO, Levno, and DTS are approved MVMS providers, we • “I have been farming for 34 years and this makes life easier for are also working with other providers to understand whether their both workers and relief milkers. Especially the notifications solutions are compatible. when the vat chiller has been left off.” Adam Wainman, Waikato The new systems will be rolled out on farms region by region, • “Really good system, good for watching temps. I’m not a with installations already complete or underway in Canterbury, computer buff but easy enough to access.” Geoff Stevenson, Tasman, Marlborough, Otago and Southland and installations Canterbury. soon to begin in Northland. • “It’s fantastic technology. My staff might not realise there is a problem, like the milk being too hot or the agitator not working, but the system will let me know so I can get it sorted WHAT IS A MILK VAT straight away.” Steve Watts, Canterbury. For Fonterra, MVMS will help improve collection efficiency as it MONITORING SYSTEM? will provide more precise information about available volume and • Sensors attached to the vat measure the volume of milk, milking time. This will also save you time as you will no longer if the agitator is on or off, the incoming temperature of need to manually update your milking time window throughout the milk and the in-vat milk temperature the season. • The data collected by the sensors gives you reliable and timely information about your milk and vat • Access to your information and data is through a simple Approximate installation schedule online dashboard. You’ll receive texts and/or email alerts to notify you of any unexpected issues with the milk Canterbury Tasman Marlborough October 2019 in the vat Otago Southland February 2020

Northland March 2020

Waikato May 2020

Bay of Plenty September 2020

Central Districts February 2021

Taranaki April 2021

Fonterra Farm Source >>> February 2020 8 INTERIM RESULTS FARMER MEETINGS Our Co-op's half year results will be announced on Our Co-op's Management team and Directors will be on the road Wednesday 18 March, and details will be available from Monday 23 March to Friday 27 March to meet with you, discuss the results and answer any of your questions. on the My Co-op app and the Farm Source website. Meetings will be two hours long, including a short presentation and plenty of time for questions. Light refreshments will be provided. We hope you will be able to attend one of the meetings below.

Location Date Time Venue

Whangarei Thursday 26 March 7:00pm Barge Showgrounds Events Centre, 474 Maunu Road

Kerikeri Friday 27 March 11:00am Turner Centre, 43 Cobham Road NORTHLAND

Matamata Tuesday 24 March 7:00pm Matamata Racecourse, 7555 State Highway 27

Morrinsville Wednesday 25 March 7:00pm Morrinsville Rotary Community Club, 45 Canada Street

Te Awamutu Thursday 26 March 11:00am Te Awamutu Sports Club, 420 Albert Park Drive WAIKATO Pukekohe Thursday 26 March 11:00am PIA Events Centre, 55 Ward Street

Hamilton Thursday 26 March 7:00pm Distinction Hotel, 100 Garnett Ave, Te Rapa

Tirohanga Monday 23 March 11:00am Tirohanga Community Hall, 839 Tirohanga Road

Rotorua Monday 23 March 7:00pm Holiday Inn Rotorua, 10 Tryon Street

Awakeri Tuesday 24 March 11:00am Awakeri Events Centre, State Highway 30, Awakeri BAY OF PLENTY OF BAY Te Puke Wednesday 25 March 11:00am Pongaweka Hall, 952 Old Coach Road

Normanby Wednesday 25 March 10:00am Normanby Recreation Centre. 97 Ketemarae Road

Opunake Wednesday 25 March 1:00pm Sandfords Event Centre, 156 Tasman Street TARANAKI New Plymouth Wednesday 25 March 7:00pm Plymouth International Hotel, 220 Courtenay Street

Masterton Monday 23 March 7:00pm Copthorne Hotel & Resort Solway Park High Street

Dannevirke Tuesday 24 March 11:00am Dannevirke Sports Club, 298 High Street DISTRICT CENTRAL CENTRAL Palmerston North Tuesday 24 March 7:00pm Awapuni Function Centre, 67 Racecourse Road

Nelson Monday 23 March 11:00am Club Waimea, 345 Queen Street, Richmond

Culverden Monday 23 March 7:00pm Farm Source Store, Cnr Mouse Point & St Leonards Rd

Christchurch Tuesday 24 March 11:00am Riccarton Park Events Centre, 165 Racecourse Rd, Broomfield

/MARLBOROUGH Ashburton Tuesday 24 March 7:00pm Ashburton Trust Events Centre, 211 Wills Street CANTERBURY/TASMAN Oamaru Wednesday 25 March 11:00am Lower Waitaki Golf Club, 26 Hilderthorpe Road

Balclutha Wednesday 25 March 7:00pm South Otago Town & Country Club, 1 Yarmouth Street

Gore Thursday 26 March 11:00am Heartland Hotel Croydon, 100 Waimea Street, Croydon OTAGO / SOUTHLAND Invercargill Thursday 26 March 7:00pm Ascot Park Hotel, corner of Tay Street and Racecourse Road

Fonterra Farm Source >>> February 2020 9 Gumboot up for the Tractor Trek

Our Co-op is proud to support Gumboot Friday, a campaign that last year raised more than a million dollars to provide free counselling for New Zealand children struggling with anxiety and depression. Mental health is one of New Zealand’s top health & wellbeing issues and this year something a bit different is happening to make Gumboot Friday bigger and better – the Tractor Trek. The Tractor Trek will see mental health advocate and 2019 New Zealander of the Year Mike King leading a fleet of tractors on a 24-day tour of the country, covering 2000 kilometres from Bluff to Cape Reinga, in the lead up to Gumboot Friday, which this year is on April 3rd. Stopping along the way to hold school and community events, the aim is to raise five million dollars to help those, especially young people, who are experiencing mental health issues. Mike King gumbooted up before the Tractor Trek The Tractor Trek was born out of a vision of its founder Phil Aish, a dairy farmer whose wife of 49 years Janice passed away in Much like the peer delivered Good Yarn workshops, which 2014. In 2016 and 2018 Jim started and led the Tractor Trek to enable our people to talk about mental health in a safe way, raise money for hospice. A chance encounter between Phil’s Director of Purpose Wendy Paul says we are proud to get in daughter Cat Levine and Mike King led to the Trek supporting the behind such an important cause. Gumboot Friday initiative this year. “Caring for the communities where we live and operate is all “As fourth generation farmers, supporting and raising part of how we create goodness for generations. We know we awareness for positive mental health within the farming can’t do it all ourselves so partnering with others to have the community is something we feel strongly connected to as a greatest impact is a great way for us to bring tatou, tatou, you, family”, says Cat. “With this tour, we are sending a message of me us together to life. The Tractor Trek and Gumboot Friday are hope to those in need. They are not alone, and we support them great initiatives for a very important cause, and we are proud to wholeheartedly.” be involved.” With the grass roots fund programme now closed, The Trek will start in Bluff on March 3rd, and as well as Gumboot Friday and the Tractor Trek are a perfect match for our school and community events, it will be stopping at some of our new community programme Hapori (the Te Reo translation is manufacturing sites and Farm Source stores - including Gore, kinship, community, coming together for a common cause), Oamaru, Christchurch, Rangiora, Longburn, New Plymouth, which brings our farmers, people and communities together to Otorohanga, Te Rapa, Whangarei and Dargaville. Our stores understand their needs so that we can make a difference where teams will be hosting BBQs and activation events with it really matters. Good Yarn facilitators.

TRACTOR TREK SCHEDULE: • Thursday 5 March – Gore Farm Source • Saturday 7 March – Oamaru Farm Source • Monday 9 March – Christchurch Office • Wednesday 11 March – Rangiora Farm Source • Saturday 14 March – Longburn Farm Source • Monday 16 March – New Plymouth Farm Source • Thursday 19 March – Otorohanga Farm Source • Friday 20 March – Te Rapa site • Monday 23 March – Whangarei Farm Source • Tuesday 24 March – Waipapa Farm Source • Saturday 28 March – Dargaville Farm Source • Friday 3 April - Gumboot Friday Gearing up for Gumboot Friday

Fonterra Farm Source >>> February 2020 10 FIXED MILK PRICE BACK FOR ANOTHER YEAR It’s back by popular demand. FMP applications are open from Monday at 7am to Tuesday at We were excited to launch the Fixed Milk Price (FMP) tool last year. 7pm following the GDT Event, during the months from March Since then it’s been helping you with budgeting, planning, and 2020 to December 2020 (*exception in the month of April, managing on-farm profitability. It joined a suite of seven financial applications will be invited Monday at 7am to Wednesday at 7pm tools designed to help you share up and invest in your farm. due to Easter public holidays). Building on this success, we’re bringing the FMP back for More information on FMP can be found on the Farm Source another year – with a few improvements. website. You should discuss if participation is right for you, and any milk quantity you might offer, with your rural professional or The programme will run largely as it did in 2019. But we’ve financial advisor. listened to feedback and made a couple of improvements to help make things a little easier for you. Month (2020) Forecast Application Period Dates The first includes deducting the service fee in March 9 – 10 March two instalments: April 13 – 15 April* • 5 cents per kgMS at the Fixed Milk Price from January 2021 May 11 – 12 May milk statement (paid February 2021) and, June 8 – 9 June • 5 cents per kgMS at the Fixed Milk Price from February 2021 (paid March 2021). July 13 – 14 July Other enhancements underway are: August 10 – 11 August September 7 – 8 September • Being able to split the service fee with sharemilkers • Providing more information on FMP in addition to the October 12 – 13 October monthly milk statement. November 9 – 10 November December 7 – 8 December Farmers fix 64 million kgMS More than 1,000 farms have used the Fixed Milk Price (FMP) tool since it was launched in June last year, representing 11% of Fonterra farms. Benefits of the Over the seven application windows, 64 million kgMS were fixed. FMP to our Co-op A number of farms participated in each of the FMP events and just over a third • Easily accessible to all participated in two or more events. The amounts fixed and the FMP fluctuated during Fonterra farmers the year as farmers made the decision to fix the amount that works for their business. • More income certainty Fixed Milk Price for farmers Available (includes the 10c • Frequent opportunities Month Applications volume (kgMS) service fee) Allocated kgMS to participate June 215 15m $6.75 11m • The cost of this service will July 292 15m $6.81 13m be recovered through the August 405 15m $6.80 15m (19m was service fee requested leading • Transparent pricing to a 77% pro-rata referenced to independent distribution of market reference available kgMS) September 213 15m $6.76 7m • Simple and quick to apply online via Farm Source October 148 15m $6.90 4m • More price certainty for the November 226 15m $7.38 10m Co-op to support planning, December 85 14m $7.46 4m sales and earnings TOTAL 1,584 104m --- 64m

Fonterra Farm Source >>> February 2020 11 TACKLING OUR PACKAGING PROBLEM 72% of New Zealanders are concerned about the Food waste represents 8.2% of all greenhouse gas emissions, build-up of packaging waste in our environment. almost matching road transport. In fact, if food waste was its own country, it would be the world’s third-largest emitter of That’s why making our packaging more sustainable greenhouse gases, after China and the US. is one of our priorities. Not only is this the right “We can’t lose sight of the food waste issue, and we don’t want thing to do, it’s essential for our business as to solve the packaging problem by simply adding to the food more consumers are increasingly switching to waste problem,” says Trish. environmentally friendly products. “We believe we can reduce the impact of our packaging while also reducing the amount of food wasted – part of our vision to Packaging waste is a huge global problem and one we contribute be sustainable for generations to come.” 150,000 tonnes a year to, with some created from finite resources and others ending up in landfill or the ocean. We want to reduce So, what’s next? our footprint by using less packaging and recycling more There’s still work to do to make our packaging more sustainable Recent packaging initiatives our Co-op has and to ensure it actually gets recycled. We know that getting the undertaken include: right packaging recovery AND recycling infrastructure in place is key. That’s what we’re working with our industry and government • Committing to 100% recyclable, reusable or compostable partners to get it right. packaging by 2025 • Undertaking a packaging audit to determine the state of our current packaging • Signing NZ’s Plastics Packaging Declaration, strengthening Our packaging by the numbers our commitment to sustainable packaging by 2025. As part of our 2025 commitment, a team across Fonterra has undertaken a packaging audit in an effort to better track and plan 12% for more environmentally-friendly sources of packaging. General Manager Global Sustainability & Partnerships Trish Kirkland-Smith says, “we can’t manage what we don’t measure. This audit helps us to better understand what our packaging it’s made of, where it comes from and where it ends up.” The team assessed 150,000 tonnes of packaging material and 14% how recyclable it is, in theory and practice. This included packaging materials used for consumer, ingredients, food service products, and even logistics. Key data from the audit found that approximately: • 60% of all our packaging material is recyclable, and recycled in practice 60% • 14% is collected and recycled through industry stewardship 14% schemes in some markets • 14% is recyclable, but is not recycled due to lack of recovery or recycling services and infrastructure • 12% can’t be recycled in most markets. “When we talk about ‘recyclable’, we are taking a real-world view – it’s not just that the packaging is technically recyclable, Of all our packaging material is recyclable, and recycled as nearly everything is, but that it is recycled ‘in practice’ and that in practice. 80% of people who end up with the package to dispose of can do so,” says Trish. Is recyclable, but is not recycled due to lack of recovery Why have packaging at all? or recycling services and infrastructure. Trish says while packaging can have an environmental impact, it’s Is collected and recycled through industry stewardship an important way to protect food. It extends the shelf life of food schemes in some markets. and prevents damage during transport. “Food waste is a big problem around the world with roughly a Can't be recycled in most markets. third of all food produced for human consumption lost or wasted. That’s nearly 1.3 billion tonnes each year.”

Fonterra Farm Source >>> February 2020 12 Double delight for dairy scientist Surprising and surreal are the words Harvey Indyk uses when he’s asked to describe the last couple of months, for two similar reasons. The first was being made an Officer of the New Zealand Order of Merit for services to analytical chemistry and the dairy industry in the New Year honours list. The second was being named the joint winner of the AOAC International* Harvey W. Wiley Award for 2020, the organisation’s highest honour for lifetime scientific achievement. Not bad for a guy who describes his 40-year career as “messing about with molecules”. Harvey is a Senior Research Scientist based at our Waitoa site in Waikato and has worked for our Co-op since the early 80s. He says when he received the letter about his New Year honour he didn’t open it for a couple of days.

“It had a Government logo on the envelope and I thought it Harvey really gets thrown into his work would be a fine or a jury duty summons so it was a huge shock!”. Harvey says he was nominated by his boss Rob Crawford a year the wider dairy industry to meet label claims and rigorous or so ago but neither had heard anything since. compliance requirements. “To be honest we had both forgotten about it so that just Suffice to say after a few weeks getting back up to speed added to the surprise. I still have a little voice in my head saying I with the lab technology and a huge amount of work, he don’t deserve it and there are other people just as deserving, but succeeded, developing a testing method that did not require I guess sometimes good things just happen.” sophisticated instrumentation and is still used today, which For someone who is probably approaching retirement, Harvey gives him a lot of satisfaction. says the awards are a very unexpected icing on the cake of a Most of his work has involved the development of analytical rewarding career, which started when he completed a PhD in methods for measuring nutrients like vitamins, proteins, trace physical organic chemistry at Liverpool University in 1974. elements, amino acids and fatty acids - essential information for “After I finished my PhD I wanted to do something a bit labelling claims on products such as infant formula - while trying different, so my wife and I moved to New Zealand, bought to keep up with the latest technological breakthroughs. some land in Coromandel, built a house, planted an orchard, “When I first started at Te Rapa I was using slide rules, log had some animals and lived what I would call a tables and graph paper. The advances in electronic data pseudo-alternative lifestyle. My wife taught at the local school processing and analytical instrumentation over the last 40 years and I got into my guitar and sports, like judo, which I have since have been mind-blowing.” given up and replaced with kayaking.” Harvey is due to be officially presented with his Officer of By 1980 Harvey started to feel an itch to get back into science the New Zealand Order of Merit honour at an investiture and eventually got a job in the NZ Co-operative Dairy Company ceremony in Auckland in April and his AOAC award in Orlando, Central Lab at Te Rapa. “I turned up for an interview as some Florida in September. hippy looking dude from Coromandel and the lab manager, Jim Le Prou, took a significant punt on me.” *AOAC International is a globally recognised, not-for-profit scientific association headquartered in the US. It was founded in 1884 as the Harvey was hired initially for a specific job. To develop a Association of Official Agricultural Chemists. It publishes standardised, simple and accurate way to test for the concentration of vitamin chemical analysis methods used by food scientists around the world. A in milk, something that was unavailable, and was needed by

Kayaking is another of Harvey's great loves The guitar has been a long Harvey and friend on a kayaking trip lived passion for Harvey

Fonterra Farm Source >>> February 2020 13 GLASS MORE THAN HALF FULL FOR WAIKATO DAIRY FARMER

Tony Wilding

Christmas Day 2019 won’t be one that the family and prior to forming Fonterra, Deputy Chair of the New Zealand of dairy farming stalwart Tony Wilding will forget Dairy Group. in a hurry. Perhaps one of his greatest contributions is as a positive force in building a fair and productive sharemilking industry. Tony has As they sat down for Christmas breakfast, Tony’s daughter Lizzy spent years championing the rights of sharemilkers, and is had an announcement, sharing the news that Tony had been currently chairing the Federated Farmers sharemilker farm recognised in the New Year’s Honours list, being made an Officer owner’s group, which looks after the interest of farmers who of the New Zealand Order of Merit. employ sharemilkers on their farm. Tony, who already knew, having received a letter in September, Tony says a successful sharemilking industry is built on two said it was a special moment to share with his nearest and dearest. parties both having success while building capable talent to run “Lizzy read the letter out to the family and there were hoots farms in the future, something that is beneficial for farm owners and tears of delight. When I first found out I was really chuffed, and the wider sector. so it was great to be able to share it with my family, who have “To me it’s a step process, if you don’t have sharemilkers then been my greatest supporters over the years.” you don’t have sound steps to farm ownership. Amongst the list of great New Zealanders honoured this year, “You need to have a good succession of capable people firstly Tony was the only farmer to be recognised, testament to the working on and then buying and operating New Zealand farms.” second to none dedication he has given to the dairy industry and Tony knows first-hand how valuable that process is. Passionate his community. about agri-education from a young age he was a part of the Dairy farming in Okoroire, South Waikato, Tony has had a busy farmer cadet scheme. Going on to join Young Farmers he talks career on and off the farm. Away from farming, close to his heart fondly of the encouragement he received during his early years as is his community work, including with the Maungatautari a sharemilker. Ecological Island Trust and Leukaemia and Blood Cancer New “It was a time that I really enjoyed. For me it was all about the Zealand, which he is currently a Trustee and previously a chair of. continuous support and that is the driving force behind my “The community and voluntary work has been personally passion for mentoring young people in the industry now. It’s nice rewarding” says Tony who is actively involved with Okoroire to give back what I received and seeing young people getting School and Tirau Golf Club as well. ahead and hearing their feedback – nothing beats it.” Tony’s commitment and governance skills have also contributed Tony’s positivity extends to the future of dairy in New Zealand too. greatly to the dairy industry, with six years on the New Zealand “I feel encouraged about it. We will keep reinventing ourselves, Dairy Board, while he was also one of a team instrumental in the we have a huge depth of knowledge and for me I’ve always seen creation of our Co-op. He had 14 years’ experience as a Director the glass half full.”

Fonterra Farm Source >>> February 2020 14 NZ streets ahead in sustainable farming “It was a huge eyeopener, but for all the has a goal of zero waste to landfill by 2025 or the extent to which wrong reasons.” we want to reduce methane levels. I went to the climate change exhibition at the Natural History Museum in New York and there That’s the reaction of Taranaki farmer Trish Rankin was no mention of agriculture at all. The entire display was about when she’s asked about last month’s Harvard carbon emissions from industry and vehicles.” Business School’s Agribusiness Seminar in Boston. Emerging global food trends were a big topic and Trish believes Trish, the 2019 Fonterra Dairy Woman of the Year, used some of New Zealand has a prime opportunity to target a key her scholarship prize to attend the seminar. It’s been running for psychological factor among consumers wanting plant-based more than 50 years and involves global agri-leaders meeting at meats or meat substitutes. Harvard to discuss the changing landscape of agribusiness and “We can be the ‘Possible’ to the plant-based protein ‘Impossible’ new tactics for seizing opportunities, overcoming challenges and customer. The Impossible Burger and Beyond Meat options are not leading change. targeted at vegans or vegetarians. They are marketed at the meat Trish says during the case study discussions over the four-day eater who may have concerns about the environmental and/or seminar, it became clear to her, and the two other kiwis on the animal welfare impacts of eating meat. Our proven environmental course (Federated Farmers CEO Terry Copeland and Jessica Smith and animal welfare credentials can help allay those concerns.” from Omiti Indigenous Agribusiness), how far ahead of the rest Using her North American experience as a snapshot Trish says New Zealand is when it comes to responsible and sustainable food quality compared to New Zealand was like chalk and cheese, farming and how little the other attendees knew about our model. something that she had not expected. “Very few of the people I spoke to knew that New Zealand is a “I didn't realise that global consumers of our products usually pasture-based, non-GMO/growth hormone and minimal antibiotic eat low-quality food. People I spoke to here thought eating or pesticide use animal protein producer. When we told them that antibiotic filled, chemical rich, factory farmed food from animals we care for our cows like they are family members and our raised in cages or barns on GMO feed and given growth free-range ethos also extends to chickens and pigs they thought hormones, was just what you did. Premium products in the USA we were crazy people. The things we care about and concentrate are what we eat everyday here in NZ. And they pay for it. We on here, such as water quality, animal welfare, reducing emissions went to a restaurant that specialises in paddock to plate type and caring for our communities, aren’t even on their radar.” food, where you have traceability from the grower to the retailer. Most of the 190 attendees were consultants for huge corporate This is exactly what we do here, but as part of our supermarket farms, or executives from logistics companies or agri-banks and shopping. You can easily access free-range or organic food Trish, one of only about a dozen ‘grass roots’ farmers, says it’s a without going to a specialised restaurant. shame many of the corporates have little or no commitment to or “We are producers of some of the world’s best protein, made in belief in environmental responsibility. a responsible and sustainable way. We care about our consumers, “It’s all about the dollar signs and how they can spend their communities and climate and I’m proud to be a farmer here profits. They nearly fell off their chairs when I told them we have because I wouldn’t want to be one over there - there’s not much banned single use plastic bags in New Zealand or that our Co-op good about the food they produce or how they produce it.”

Trish with Terry Copeland and Jessica Smith

Fonterra Farm Source >>> February 2020 15 COUNCIL CONNECTION Update from your Shareholders’ Council We’re well into 2020, and Council has our priorities keeping numbers at a level conducive to effective debate and sorted and workstreams well underway. decision making. This group will appoint a ninth, and independent, member to be their Chair. In mid-February the 2020 Governance Development Programme held the first of its three workshops in Auckland. The GDP is one of There is a deadline of 31 July to report back to shareholders on the learning programmes your Council is mandated to administer in the results of the review and any recommendations, to allow the Fonterra Constitution in order to develop a pipeline of future sufficient time for any recommendations requiring shareholder leaders. The 21 participants are a diverse group of farmers who are approval to be considered at the 2020 Annual Meeting. Expressions motivated to make a contribution in their industry and of Interest for the Steering Group closed on 24 February, and we’re communities. We wish them well for the coming nine months of moving quickly to get the Steering Group appointed so they can challenging study and personal development. For the first time this get started. Look out for further updates via email. year, two scholarships were offered. Congratulations to the two Another key focus for us this year is to see a review of the recipients: Southland sharemilker Jono Bavin and Canterbury-based Board’s Statement of Intentions, which sets out targets for the educator and sharemilker Victoria Trayner. Look out for their stories performance and operations of the Company for a Season. We’ve in the next issue of this magazine. indicated to the Board that we would like to ensure these targets From our last Council update email, you’ll know that a main reflect the new strategy, forecasts, and triple bottom line (Healthy focus for this year is the review of Council, which we announced People, Healthy Environment, Healthy Business) success last October. It’s a subject of great interest for many of our measures. Although Council doesn’t set the targets in the farmers, and we hope that this interest translates into plenty of Statement of Intentions, it forms the basis of our monitoring role feedback once the formal consultation process begins. and so we’re pleased to take an active part in the review process. We’ve also heard feedback from shareholders that you want to The Terms of Reference were developed with great care and a fair see markers that you can assess performance against throughout amount of debate. We are confident that we’ve come up with the year. So, we have also expressed a strong desire to see an end something that will enable the Steering Group to carry out a robust product that can be shared with shareholders at the start of a and independent process. In particular, you’ll notice that the Steering financial year and reported against throughout that year, rather Group has complete autonomy to execute the consultation as it sees than just after financial year end, as it is currently. fit, and it is chaired by a person selected by that group itself. A wide group of stakeholders, including all shareholders and sharemilkers, Speaking of performance, our mid-year results are due out in are to be consulted, and transparency will be achieved by making all mid-March and as usual there will be a series of farmer feedback available for review by all shareholders, except if the presentations around the country. I encourage you to attend one if submitter requests confidentiality. you can – these meetings are a great opportunity to ask questions and hear the updates directly from your Board and Management. We settled on including four farmer members (who can’t be current or former Directors or Shareholders’ Councillors) in the If you can’t get there in person, remember your Ward group, together with two representatives each from the Board Councillor is always on hand to fill you in afterwards, and to and Shareholders’ Council. We think this is a good number to answer any questions. We all look forward to catching up with our achieve a reasonable level of knowledge and understanding of local farmers, so don’t ever hesitate to get in touch. how governance, representation and management work in our James Co-op, balanced with an appropriate level of objectivity, while

Fonterra Farm Source >>> February 2020 16 Co-op chat with TIAKI HUNIA In the next part of our series on people working hard What are your goals for 2020? to get the best value out of your milk, we’re talking The objectives of the Maori strategy for 2020 are to support our to the Director of Maori Strategy, Tiaki Hunia. leaders and our Co-op’s strategy. Long term, our goals are to infuse Te Ao Maori into our identity as Fonterra to benefit us all. And then, What brought you to Fonterra? on top of that, strengthen provenance, Iwi relationships and our Belief in the Co-op. I saw the similarities between the Co-op commitment to environmental wellbeing. approach and Iwi. Fonterra has a huge importance to New Zealand – What can our Co-op do to help you achieve whether it be for our future generations, its strong historic roots or what it can contribute to this changing future. The Fonterra GDP your goals? alumni is also an opportunity to give back to our Co-op, and I’ve been Be comfortable with Maori – we have so many commonalities, a Fonterra shareholder and supplier through our farms in the eastern inter-generational, whanau/legacy orientated, care of land and our Bay of Plenty since 2006. environment. Download the Te Reo Maori: Te Matapuna app, which helps with correct pronunciation. And finally, respect and embrace What exactly is your role? the culture – Te Ao Maori is unique to Aotearoa NZ, it’s who we are Pouhere Maori – Director of Maori Strategy, I lead a great team of Tatou, tatou. four MBRMS’s (Maori Business Relationship Managers). I sit across both Co-operative Affairs and Farm Source, which allows me to have What do you like to do when you’re not at work? both a farmer-shareholder perspective, and a stakeholder and I’m family orientated – or as the kids would like to think, their taxi internal staff perspective. The strategy that I lead incorporates Te Ao driver. I love sports, I’m a long suffering but loyal supporter of the Maori for the benefit of everyone within our Co-op. Warriors, (this year is our year). And being from the Bay of Plenty – the Chiefs and of course mighty Te Teko. What does a week in your life look like? No two weeks are the same. My weeks are a mix of Auckland-based as well as regional-based, which I enjoy. Lots of team meetings which are usually digital because of our national spread. There’s a combination of shareholder engagement, stakeholder engagement, staff support and development. What gets you out of bed every morning? Our greatest asset is our People - He aha te mea nui o tenei ao, he tangata so working alongside and for them is what inspires me. Fonterra’s contribution to New Zealand is so important, we have some great committed staff here and all around the world, but most importantly it’s making a contribution to reflect the incredible work that our farming families do. It’s hard work that occurs on farm, so we need to try our absolute best to recognise that and work for them.

Go the Warriors!

Tiaki has been a shareholder and supplier since 2006 Tiaki and his wife Rangimarie

Fonterra Farm Source >>> February 2020 17 Build an irrigation lake and they will come When Geoff and Rochelle Spark’s Canterbury farm needed an irrigation lake, they decided to use it as an opportunity to promote health and wellbeing, bring the local community together and create a better rural-urban connection. Ten years later, in December last year, their family hosted more than 400 athletes for OxMan, New Zealand’s newest long course triathlon and the first half ironman to take place in Canterbury in 22 years. “When we designed the lake in 2010, its purpose was first and foremost for irrigation storage, but we also wanted it to work for sport and recreation,” said Geoff, who is the Fonterra Shareholders’ Councillor for North Canterbury. The lake is 500m long x 120m wide so it can accommodate waterskiing, swimming, rowing and kayaking, and is positioned near the road for an easy transition to the bike leg of a multisport event. The New Zealand under-21 kayak team use it to train and need to be fit and strong. We all know the benefits of fitness for the Arawa Canoe Club hold their annual regatta there, but “this is health and well-being, so getting involved and participating in an the first time we’ve hosted an event like this”, says Geoff. event like this can help fitness-wise, get a bit of time away from The OxMan included a range of race options to suit all abilities. the farm and build connection with your community.” As well as the half ironman triathlon, there were duathlon (run/ That community also got on board. The local school borrowed bike/run) and aquabike (swim/bike) events, a Mini OxMan, a Junior the BBQ and chiller trailer from the local Farm Source store and OxMan for 10 to 16-year-olds and 21km and 7km run-only options. managed the catering for athletes and supporters as a fundraiser. The event was a huge success, with beautiful weather and many Anchor provided protein milk drinks for athletes, and Waimakariri more participants than the race director anticipated. They ranged Irrigation was a race sponsor. The event raised $1000 for from six to 80-year-olds, and included elite athletes, competitors Farmstrong, a nationwide wellbeing programme for the rural training for the Coast to Coast multisport event, and some just community. Geoff’s sharemilkers and on-farm team were fully on wanting to ‘have a go’. Geoff and ten members of his family board, helping to prepare the farm for the event so it ran smoothly, participated, including his wife, son, two daughters, nieces and as well as keeping operations running as usual on the day. nephews. He was also thrilled with the number of local teams “We’re absolutely stoked with how it went,” Geoff said. “We who got involved. have had amazing feedback about the location and the lake and “One of our targets was to get local farm teams involved,” said how the event was run. I can see it becoming an annual event. Geoff. “Farming is not easy and there are challenges ahead so we People are already talking about next year!”

Swimmers preparing for the start Geoff and family

Fonterra Farm Source >>> February 2020 18 CELEBRATING A NEW ZEALAND SUCCESS STORY There is a well-known saying that claims “if you Grahame is now planning to organise some more signage so don’t know where you’ve come from, you don’t that people travelling past, either on the road or the nearby cycleway, can stop and experience a little slice of dairy history. know where you’re going.” So, when it comes to our world-famous Anchor butter, Fonterra farmer and Waipa District Councillor Grahame Webber is doing his best to make sure the past is not forgotten. For the past 30 years Grahame has been tending a site at Pukekura, near Cambridge, as he says, “to keep it tidy”. The site is significant because it’s where Henry Reynolds, an Englishman who came here to take up dairy farming, built the factory where Anchor butter was first made in 1886. The Anchor brand, allegedly inspired by a tattoo on the arm of one of Reynolds’ workers, quickly became a market leader and soon Reynolds had eight factories across Waikato, Bay of Plenty and Taranaki, producing 300 tonnes of butter a year and exporting to the UK, Australia and Asia. In 1896 he sold the Anchor business to the New Zealand Dairy Association, which was part of the merger that created Fonterra in 2001. Grahame says it’s important to honour the beginnings of one of our best-known products, so late last year he convinced his Council colleagues to fund a new plaque, replacing one that had stood since 1961, and some information signage, which includes a QR code that people can scan on their phone to learn more about the Anchor story. “Local people who don’t know the history are amazed when I tell them it was where the butter they have on their toast was first made! It’s important that we recognise the history of our industry and Anchor is a real New Zealand success story that should be celebrated.” Sharing the Anchor story EXTENDING MYMILK TO THE NORTH ISLAND Our Co-op has announced plans to extend the MyMilk is an opportunity to keep growing and stay with the Co-op, successful MyMilk initiative to the North Island and and we’re delighted other young farming families will be given that chance,” says Don. include existing farmers looking to purchase another MyMilk will be available in the North Island for supply Fonterra farm. commencing from 1 June 2020. Eligibility conditions apply and MyMilk provides farmers with a pathway into our Co-op, by allowing MyMilk volumes are limited to 5% of Fonterra’s total milk collections. them to supply MyMilk for up to five years without buying shares. More information can be found at www.mymilk.co.nz. First launched in 2014 in the South Island, more than 145 dairy farmers have been involved in MyMilk over that time. “Fonterra-backed MyMilk has been helping young and new farmers MyMilk returns profit to existing establish a foothold in the industry and ultimately take a stake in Fonterra,” says Group Director of Farm Source, Richard Allen. farmer shareholders in five ways: “To strengthen our Co-op, and keep it strong for generations to • Increasing volumes of milk to keep the Co-op strong come, we need to encourage farm succession and bring in younger • Helping improve asset and supply chain utilisation farmers. We’re also extending the initiative to help existing Fonterra farmers looking to grow their business by purchasing another • Achieving transport efficiencies by targeting milk Fonterra farm.” near factories For Southland farmers Don and Jess Moore, MyMilk has opened up • Attracting potential new shareholders and farmers an opportunity once beyond their reach. looking to buy farms in the future “We’ve always wanted to be Fonterra suppliers. It’s been awesome • Helping Fonterra farmers looking to grow through to have the opportunity that MyMilk gives us. It’s providing a purchasing another Fonterra farm. pathway through stepping from share-milking to farm ownership.

Fonterra Farm Source >>> February 2020 19 Get your nominations in for prestigious award There’s still time to nominate someone for the 2020 Fonterra Responsible Dairying Award, with entries open until March 20. The award, part of the NZ Dairy Industry Awards, recognises dairy farmers who demonstrate leadership in their approach to sustainability and who are respected by their farming peers and their community for their attitude and role in sustainable dairying. While Fonterra sponsors the award, any New Zealand dairy farmer is eligible to be nominated. The winner will be selected by a panel of judges and announced at the NZ Dairy Industry Awards National Final in Auckland on 16 May. 2019 Fonterra RDA Winners Damian & Jane Roper The winners of the Fonterra Responsible Dairying Award receive the John Wilson Memorial Trophy. John was keenly aware “We know that we need to be ready to innovate and adapt to of the need for, and benefits of, farming in a sustainable and make that a reality. That’s why we launched The Co-operative responsible way and he was the driving force behind the Difference last year to make sure our Co-op farmers are leading establishment of this award. the way in terms of their animal, community and environmental Last year's winners were Taranaki farmers Damian and Jane responsibilities. This award takes it a step further and recognises Roper while Waikato farmers Wynn and Tracy Brown won the dairy farmers who are respected by their industry peers for their inaugural award in 2018. leadership, attitude and performance in sustainable dairying.” Fonterra’s Group Director of Farm Source Richard Allen says Entry for the award is by nomination only via the NZ Dairy the award reflects Fonterra’s focus on maintaining a strong and Industry Awards website: www.dairyindustryawards.co.nz sustainable future for dairy farming in New Zealand. DairyFert operation a win-win for our Co-op Being more sustainable while still creating value Mike Farrell, DairyFert Operations Manager, says it’s a can sometimes be a fine balancing act. sustainable model that helps us make the most of every drop of milk, representing a win-win for our Co-op. A great example of that balance in practice is our Pinedale farm near Lichfield. The 1300-hectare property, run by our DairyFert “It’s a good way for us to completely control our nutrient operation, helps to create value from the nutrient rich management while also returning value to our shareholders. The by-products of our manufacturing operations. nutrients help us to grow crops that we provide as feed to farmers who turn this back into milk for the Co-op.” DairyFert is a Fonterra-owned transport and logistics company. It takes, and finds different uses for dairy by-products from our In addition to the nutrients applied to land, a worm-composting sites. These uses include spreading to land (such as Pinedale), operation is run via a joint venture with MyNoke Ltd. Composting further treatment or stock-food. offers an alternative way to use dairy by-products when land spreading is limited by wet weather. MyNoke Ltd estimate there Fonterra bought the Pinedale farm in 2013, as we realised we are a billion tiger worms at Pinedale and this is thought to be the needed more land to make the most of the nutrients that were largest concentration of these worms found globally. being produced by some of our Waikato sites. Regular meetings are held with neighbours of the Pinedale The property was transformed from forestry into a sustainably property, as well as iwi and other stakeholders. Many staff teams, efficient operation, with areas for land spreading and growing farmers and interested members of the public have visited crops, and other areas retired and planted in native trees. In the Pinedale, and the sheer scale and sustainability of the property future there is potential to create Manuka plantations on steeper always seems to impress. areas and grow flax in low lying areas, reflecting community interest in using flax for weaving.

The Pinedale property before and after

Fonterra Farm Source >>> February 2020 20 FROM 15 CENTS TO 140 YEARS OF DAIRY SUCCESS When the great great grandfather of Wairarapa “We’re all really proud that we have been able to carry on this dairy farmer Jason Christensen came to New legacy and even the family members who live in the city feel a strong connection to this land. It was great to get everyone Zealand he wouldn’t have imagined that 140 years together recently to celebrate the 140 years. Dad’s brother and later his family would still own and operate a farm sister were especially enthusiastic as this is where they grew up he built from the ground up. and there are so many good memories here.” Hans Christensen emigrated from Denmark to New Zealand in Obviously on-farm tech has come a long way since the late 1874 at the age of 22, arriving with today’s equivalent of just 15 1800s and the farm has kept up with the times. A ten-bail cents in his pocket. He found a job as a storeman in Featherston, walkthrough cowshed was constructed in 1929 and in 1971, with and saved enough to buy 42 acres near Mount Bruce in 1879. his own hands, Henry built Wairarapa’s first rotary cowshed, and only the ninth in New Zealand. Today the farm has a Hans set about buying and clearing adjoining land and by 1893 he state-of-the-art 44-bail rotary milking shed, milking 41 cows at a had married (1885), had a son (Hans Henry born in 1887) and time. It includes a sophisticated heat exchange system that heats increased the property to 251 acres. The family hand milked 30 water as it cools the milk, generating enough hot water to wash cows, first selling cream to a food company in Wellington and then out the milking plant and vats twice a day. later making their own butter and selling it to stores in Masterton. As well as the investment in technology, the environment is a Hans’ son took over running the farm in 1909, starting a big focus for the Christensen family. All of the farm’s waterways succession journey that would see the farm pass through five are fully fenced and planted, and nearly 19 hectares are covered generations of family ownership, with Hans’ descendants recently by QEII covenants with another 32 hectares set to be covenanted celebrating 140 years on the same property. later in the year. Hans’ great great grandson Jason has managed the farm since Jason says his experience as a DOC ranger gives him a real 2008, following a 15-year career with the Department of appreciation for the environment and he still leads some tours for Conservation, including almost 12 as a DOC ranger on Mana ‘Friends of Mana Island’, giving him a break from the farm but also Island near Porirua. Jason and his father Henry milk 370 cows on a chances to champion the dairy industry. dairy platform of 153 hectares, with the farm a total of 527 hectares. Henry also developed and opened the Mt Bruce Pioneer “I enjoy the tours because the people you meet are into the Museum on the farm - a private collection of a wide range of New outdoors, but they don’t know a lot about farming. When they Zealand historical items, not just about farming. find out I’m also actually a dairy farmer they ask a lot of questions, some of which are based on wrong assumptions, so I’m Over the last ten years members of the sixth generation have able to dispel some of the myths about dairy farming and provide been pitching in on the farm and Jason says the property is an some good PR for our industry.” important focal point for the family.

The Christensen clan celebrating 140 years

Fonterra Farm Source >>> February 2020 21

Jason's niece Ellie and her favourite farm friends

Jason enjoys leading guided tours of Mana Island

Jason's grandfather Douglas cutting the 100 year anniversary cake Hans Christensen and wife Anna

Fonterra Farm Source >>> February 2020 22 CALVES FOR SCHOOLS When the manager of our Darfield site farm Bruce Knudsen wondered how our Co-op could support local schools, he had a lightbulb moment “I thought why don’t we approach local schools and see if they want to graze some calves on our Darfield farm?” Schools jumped at the idea and the ‘Calves for Schools programme’ was born. The concept is simple. Schools are donated calves from local farmers and the calves are brought to graze at the Co-op’s Darfield site farm. Each school is allowed to graze 10 calves and they are kept in their own areas on the farm. Greendale School students visiting the animals Bruce monitors the calves and takes care of the feeding, drenching, vaccinating and weighing. He regularly reports back to Bruce says there are 53 calves on the farm at present and once the schools on the health of their mini herds. they are sold, all of the profits go back to the schools. “Sometimes I deliver the results in person and the kids love to Greendale PTA member Chimene Serras says the programme talk about “their” animals. Some of the schools use the figures and helps the small rural school raise money while showing the kids results as a way of teaching subjects like maths.” that they have the support of the community. The programme also benefits the Darfield farm operations. Steve Veix, Regional Farm Operations Manager South Island, says grass is harvested off the farm and sold, so having stock grazing at certain points of the year is important as they return organic matter to the soil and help manage pasture quality. “But the primary thing is we are giving back, appreciating that we are a part of the community. It’s great to support small schools, the kids will remember this, and it could even spark an interest in dairy farming for them.” Bruce says the programme has been really successful and he’s looking forward to doing it all again. “The feedback we’ve had has been very positive. We’re not looking for a pat on the back, just engagement with the community Some of the calves donated by local farmers and letting them know we are here and can help.” FGTPs welcomes its 50th cohort It was a big celebration just before Christmas as the One of the new entrants, Alison Churchouse, is looking forward Fonterra Graduate Technical Programme (FGTP) to the opportunity to get hands on in the factory placements, and she’s excited about the variety of paths the FGTP programme can welcomed its 50th intake of graduates. take her within the Co-op. FGTP is a one-year programme that supports graduates with a “I’m really keen to learn from as many people as I can this year background in Engineering, Science, Environment or Food and also how to further develop myself through coaching from my Technology to receive a Masters of Dairy Science and Technology mentors and those around me. It’s fascinating and inspiring to while gaining valuable industry experience, something that only look at where those before us have gone and to think where we our Co-op does. might end up.” The programme has truly stood the test of time, with more than The graduate programme was a highlight for 2015 graduate 600 graduates, hundreds of research projects and five decades Caitlin Briasco, now based in the Netherlands as Account under its belt. Manager for Global Sourcing & Partnerships EU. “The FGTP programme gives graduates a unique experience and “You get to know your peers and grow with them in the broad perspective of the business and starts them on the pathway business. After five years it’s amazing to see where everyone ends to becoming technical leaders.” says Lynda Shergold, FGTP up, all over the world”, says Caitlin. Programme Manager. We look forward to celebrating the 50th anniversary later this The FGTP programme has a rich history in shaping the success year. But for now, we want to wish the latest cohort the best of of current and future leaders for our Co-op. Some familiar faces luck in 2020. include members of the Fonterra Senior Management team, in particular Kelvin Wickham, AMENA CEO and Fraser Whineray, our new Chief Operating Officer.

Fonterra Farm Source >>> February 2020 23 Come along to DairyNZ Farmers’ Forums By Vanessa Winning, General Manager Farm and how this is helping shape our future priorities for the next Performance, DairyNZ. levy order. The team at DairyNZ have been hosting Farmers’ Forums across The focus of the two forums is around how we’re working for you the country, and we have another couple left that I’m hoping you behind the scenes on regional and national policy, and what can join us at. research is underway into provide practical, on-farm solutions to changes, while keeping your profitability. Local farmers will share These events are free to dairy farmers, and a great chance to how they have achieved win-win-win change to reduce nitrogen hear about the latest changes on and off-farm, key global trends and greenhouse gas emissions while improving profitability. As affecting dairy and some practical farming solutions too, as well always, the best part is the discussion and sharing with others as a chance to talk with members of the board and national and where you could pick up some great ideas to use on your farm. local staff. The Taranaki Farmers’ Forum is being held on March 11 at the Regional Farmers’ Forums are usually held every second year and Dairy Trust Taranaki’s Kavanagh Farm in Hawera. As well as the Taranaki and Canterbury events which are coming up this covering the topics above, the results of their autumn calving trial month, follow on from our recent forums in Northland, Waikato will be presented too. So, if you’re thinking of looking at autumn and Southland. I’ve really enjoyed the first three - it’s a great calving as an option for your farm this is a great chance to learn chance to catch-up with farmers and prepare for the season ahead. more about what the transition might involve. We have some exciting speakers lined up to share their insights Our final Farmers’ Forum is on March 12 at Lincoln. Local with you, including two keynote speakers, Economist Cam Bagrie, research on variable milking intervals will be shared as the regional and Celebrity Chef Nadia Lim. topic to complement the wider programme. You can hear about Cam talks about the value of consumers, global environmental initial trial results on 3 in 2 milking, and consider how this option change and trends, and what new technologies might impact our could suit you. food. Nadia will discuss the importance and value of 'nude food', Our forums are always really popular events, so don’t miss the where the future of food is heading and why natural agriculture will opportunity to come along. You can see our programme and register continue to play an important role. at dairynz.co.nz/farmersforum. Forums are free for DairyNZ levy DairyNZ chief executive Dr Tim Mackle will share the feedback payers and their staff to attend. Be great to see you there. he’s received from farmers at our recent consultation meetings,

Cam Bagrie Celebrity Chef Nadia Lim

Fonterra Farm Source >>> February 2020 24

YOUR PHOTOS

Angus with his mates! A family snap with Emily (4) & Charlotte (3). Thanks for the snap Jenny McLean Thanks for the pic Katrina

Stunning sunrise in Port Molyneux @poohfarmer

Genya Halliday and family remember a beloved member of the herd 2013-2020

Up close and personal with number 413! Thanks Whispering Manor

Dairy farming meets New Zealand summer! @buttonkaty

See your photo in next month’s FarmSource Share your photos with us on Facebook, Twitter, Instagram by tagging Fonterra or by sending them to [email protected].

Fonterra Farm Source >>> February 2020 25

Directors Shareholders’ Council

John Monaghan WARD WARD NAME COUNCILLOR EMAIL PHONE Chairman Mobile: 021 758 167 1 Northern Northland Luke Beehre [email protected] 027 630 0065

Andy Macfarlane 2 Central Northland Dean Adams [email protected] 021 537 226 Mobile: 027 432 3964 3 Southern Northland Greg McCracken [email protected] 021 857 773 Brent Goldsack Mobile: 021 756 154 4 Waikato West Ross Wallis [email protected] 027 6377 460

Donna Smit 5 Hauraki Ryan Burton [email protected] 027 3558501 Mobile: 027 265 6668 6 Piako Malcolm Piggott [email protected] 027 631 7843 Leonie Guiney Mobile: 027 265 4734 7 Waipa Mike Montgomerie [email protected] 027 454 3892

Peter McBride 8 South Waikato James Barron [email protected] 027 4535 298 Mobile: 021 481 907 9 King Country Paulette Johns [email protected] 021 11 33743 Bruce Hassall Phone: 09 374 9750 10 Northern Bay of Plenty Don Hammond [email protected] 027 4885 940

Clinton Dines 11 Eastern Bay of Plenty Gerard van Beek [email protected] 0274 444 940 Phone: 09 374 9750 Fax: 09 379 8320 12 Central Plateau Matt Pepper [email protected] 027 463 8993

Scott St John 13 Central Taranaki Noel Caskey [email protected] 027 230 1083 Phone: 09 374 9750 Fax: 09 379 8320 14 Coastal Taranaki Vaughn Brophy [email protected] 027 463 8632

Simon Israel 15 Southern Taranaki Dale Cook [email protected] 027 452 2277 Phone: 09 374 9750 Fax: 09 379 8320 16 Central Districts West Robert Ervine [email protected] 027 4385 413

John Nicholls 17 Hawke’s Bay Andrew Hardie [email protected] 0294 392 542 Mobile: 027 541 6117 18 Wairarapa John Stevenson [email protected] 027 469 1548

19 Tasman/Marlborough Sue Brown [email protected] 027 8295 146

20 North Canterbury Geoff Spark [email protected] 021 229 3546

21 Central Canterbury Mark Slee [email protected] 027 632 7305

22 South Canterbury Michelle Pye [email protected] 021 360 515

23 Otago Larry Frost [email protected] 027 273 7156

24 Eastern Southland Emma Hammond [email protected] 027 211 9356

25 Western Southland Simon Hopcroft [email protected] 027 201 0377

Fonterra Farm Source >>> February 2020 26 Regional Teams

NORTHLAND Rosalie Piggott BAY OF PLENTY/TAUPO Area Manager Mike Borrie Cambridge Lisa Payne Head of Farm Source Phone: 07 827 4741 Head of Farm Source Northland Mobile: 021 546 617 Bay of Plenty Mobile: 027 221 2042 Email: [email protected] Mobile: 021 400 250 Email: [email protected] Emma Williams Email: [email protected] Brian Hughes Area Manager Michael Roe Area Manager Te Awamutu West Area Manager Northern/Central Northland Mobile: 021 228 5473 Rotorua/Galatea Mobile: 021 542 038 Email: [email protected] Mobile: 027 404 5947 Email: [email protected] James Creswell Email: [email protected] Neil Crowson Area Manager Jackie Dale Area Manager Te Awamutu East Area Manager Central Northland Phone: 07 872 4979 Taupo/Reporoa Mobile: 027 404 2769 Mobile: 027 429 6392 Mobile: 021 242 2158 Email: [email protected] Email: [email protected] Email: [email protected] Scott Parker John Wilson Greg Malcolm Area Manager Area Manager Area Manager Central/West Northland Matamata Eastern Bay of Plenty Mobile: 021 798 483 Mobile: 021 547480 Mobile: 027 325 7463 Email: [email protected] Email: [email protected] Email: [email protected] John Bryant Peter O’Shea Kate Howser Area Manager Area Manager Area Manager Southern Northland South Waikato Western Bay of Plenty Mobile: 021 917 403 Phone: 07 349 0334 Mobile: 027 789 0114 Email: [email protected] Mobile: 021 546 580 Email: [email protected] Email: peter.o'[email protected] WAIKATO Jen Carter Vicki Wallace Area Manager Debra Kells Area Manager Waihi/Tauranga Head of Farm Source Taupo West/Taumarunui Mobile: 027 204 4603 Waikato Mobile: 027 406 3105 Email: [email protected] Mobile: 027 837 7358 Email: [email protected] Email: [email protected] Nick Andree-Wiltens CENTRAL DISTRICTS Mike Powell Area Manager Jason Boyle Regional Manager Waikato Otorohanga Head of Farm Source (Upper North Island) Phone: 07 873 8194 Central Districts Phone: 07 858 8640 Mobile: 027 444 5073 Phone: 06 278 2445 Mobile: 021 840 355 Email: [email protected] Mobile: 027 491 4850 Email: [email protected] Email: [email protected] TARANAKI Brent Stevens Jamie Smith Area Manager Don Lumsden Farmer Services Manager Pukekohe Head of Farm Source Central Districts Mobile: 027 406 2446 Taranaki Mobile: 027 406 2917 Email: [email protected] Mobile: 027 279 5139 Email: [email protected] Ross Periam Email: [email protected] Tony Haslett Area Manager Shirley Kissick Area Manager Huntly/Taupiri Farmer Services Manager Hawke's Bay Phone: 07 838 7272 Mobile: 027 276 7210 Phone: 06 871 0136 Mobile: 021 542 939 Email: [email protected] Mobile: 021 961 067 Email: [email protected] Paul Radich Email: [email protected] Chris Aitchison Area Manager David Sinton Area Manager Phone: 06 756 7971 Area Manager Hamilton/Raglan Mobile: 021 961 679 Wairarapa Mobile 027 480 9015 Email: [email protected] Phone: 06 376 0948 Email: [email protected] Kevin Taylor Mobile: 021 547 784 Jill Pauling Area Manager Email: [email protected] Area Manager Mobile: 021 243 2510 Ben Burgess Ngatea East/Coromandel Email: [email protected] Area Manager Mobile: 027 221 7639 Errol Hamill Tararua Email: [email protected] Area Manager Mobile: 027 540 4190 Janette McKay Phone: 06 761 8375 Email: [email protected] Area Manager Mobile: 027 579 8519 Nick Clarke Te Aroha Email: [email protected] Area Manager Phone: 07 884 7259 Mike Green Lower Manawatu Mobile: 021 930 825 Area Manager Mobile: 027 221 7624 Email: [email protected] Mobile: 027 242 5095 Email: [email protected] Ciaran Tully Email: [email protected] Area Manager Darryl Heibner CANTERBURY/TASMAN/MARLBOROUGH Morrinsville North Area Manager Charles Fergusson Mobile: 027 541 0854 Mobile: 027 414 8358 Head of Farm Source Email: [email protected] Email: [email protected] Canterbury / Tasman / Marlborough Sarah Wood Amy Gatenby Mobile: 021 115 5253 Regional Manager Waikato Area Manager Email: [email protected] (Central North Island) Mobile: 027 565 0721 Anna Taylor Phone: 07 858 8655 Email: [email protected] Regional Manager Mobile: 021 492 179 Dean Larsen Canterbury / Tasman / Marlborough Email: [email protected] Area Manager Mobile: 027 807 8090 Jo Burton Mobile: 027 562 2393 Email: [email protected] Area Manager Email: [email protected] Victor Gahamadze Morrinsville South Debbie Jenkins Area Manager Mobile: 021 857 282 Area Manager Tasman/Marlborough Email: [email protected] Mobile: 027 405 7729 Mobile: 027 552 7230 Email: [email protected] Email: [email protected]

Fonterra Farm Source >>> February 2020 27

Mike Hennessy OTAGO/SOUTHLAND Nadine Duff Area Manager Area Manager North Canterbury Mark Robinson Northern/Central Southland Mobile: 027 706 6787 Head of Farm Source Mobile: 027 405 2952 Email: [email protected] Otago/Southland Email: [email protected] Rodney Potts Mobile: 027 809 5060 Laura Fahey Area Manager Email: [email protected] Area Manager Leeston / Rangiora Jeremy Anderson Western Southland Mobile: 027 254 0437 Regional Manager Mobile: 027 688 9867 Email: [email protected] Otago / Southland Email: [email protected] Chris Irvine Mobile: 027 5844 496 Area Manager Email: [email protected] Mid Canterbury – North Gregor Ramsay Mobile: 021 817 652 Area Manager Email: [email protected] Otago Michael Robertson Mobile: 027 264 2245 Area Manager Email: [email protected] Mid Canterbury – Coastal Staci Meecham Mobile: 021 242 3983 Area Manager Email: [email protected] West Otago / Gore Pam Phipps Mobile: 021 241 7650 Area Manager Email: [email protected] Waitaki Greg Close Mobile: 021 961 352 Area Manager Email: [email protected] Southern Southland Mobile: 021 242 5121 Henry Ross Email: [email protected] Area Manager Mid Canterbury South Ruth Prankerd Mobile: 027 565 2661 Area Manager Email: [email protected] Central Southland East Mobile: 027 813 8672 Bryan Barnett Email: [email protected] Area Manager South Canterbury Mobile: 027 405 8348 Email: [email protected] Services Team 0800 65 65 68

Your Services Team is on hand to deal with all your queries from 7am–7pm, Monday to Friday. Give us a call if you have a question about anything at all – from queries about vats and milk collection, to questions about your shares and monthly payments. At weekends and after hours you can still call our after hours team about urgent matters. Call us on 0800 65 65 68 and your call will automatically be directed to your local Services Team.

HANDY TIPS TO REACH US • Our busiest time is from 8.30am to 10.30am – directly after milking. So, if it’s not an urgent issue, try calling us outside those hours. • If you prefer, you can email us at [email protected] and we’ll get back to you within 48 hours. • Log into Farm Source via nzfarmsource.co.nz for information at any time. For New Conversions and Milk Growth

Paul Johnson Lana Ngawhika Michael Blomfield Business Development Manager Business Development Business Development Manager Waikato & Relationship Manager Southland/Otago Phone: 07 858 144 Bay of Plenty Phone: 03 948 1474 Mobile: 027 406 2462 Phone: 07 334 1016 Mobile: 021 529 581 Email: [email protected] Mobile: 027 345 4707 Email: [email protected] Haylee Putaranui Email: [email protected] Scott Cameron Business Development Mitchell Crosswell Business Development Manager & Relationship Manager Business Relationship Manager Central Districts Waikato Taranaki Phone: 027 208 7186 Phone: 07 8581451 Mobile: 027 699 1138 Email: [email protected] Mobile: 027 4063293 Email: [email protected] Email: [email protected] Roger Kilpatrick Brett Alexander Business Development Manager Business Development Manager Canterbury/Tasman/Marlborough Waikato/Bay of Plenty Phone: 03 966 7309 Phone: 07 873 8194 Mobile: 021 527 492 Mobile: 021 546 595 Email: [email protected] Email: [email protected]

Fonterra Farm Source >>> February 2020 28

SUSTAINABLE Marcelo Wibmer Northland Regional Manager Manawatu DAIRYING ADVISORS Mid Canterbury Kara Holmes Michael Peters Mobile: 021 311 332 027 292 3042 021 851 620 NORTH ISLAND Robyn Engels North Waikato Regional Dannevirke/Hawke’s Bay George Kruger Terence Bailey Mid/South Canterbury Manager Whangarei North Tash Pivott 021 857 019 Mobile: 027 5044 156 Mobile: 027 591 0290 021 194 9095 Wairarapa Ben Herbert Julie Morris BOP/South Waikato Stephanie Scheirlinck Whangarei South Otago Regional Manager 021 370 136 Mobile: 027 214 7350 Mobile: 027 209 6079 Stephanie Baker ASUREQUALITY FARM Sarah English Anna Dyer 021 322 128 DAIRY ASSESSOR Lower North/Taranaki North Waikato/ South Canterbury/ CONTACTS North Otago Regional Manager South Auckland Ashburton Mobile: 027 405 2964 Michael Peters Mobile: 027 525 6082 021 851 620 Craig McKenzie Kieran O'Connor Kiriana Keeys Far North 021 242 2842 Hamilton North/Tahuna Southland Phoebe Thorrington Ashburton Mobile: 027 702 1674 Mobile: 027 232 7149 022 043 0291 Mike McAnulty Karl Rossiter Bruce Allan Dargaville 021 599 734 Hauraki Plains/ South Otago/Eastern Jodi Hawken Ashburton Coromandel/ Southland 021 370 159 Stephine Cretney Te Aroha/ Waihi Mobile: 027 605 4344 North Auckland 027 602 7050 Mobile: 021 498 505 Brian Goodger Kara Holmes Balclutha Steph Bish South Otago/Northern 027 292 3042 Liz Vreugdenhil Matamata/ Morrinsville Southland South Auckland 027 466 0236 Mobile: 027 809 8375 Mobile: 027 703 6550 Hector Font Balclutha 027 224 1100 Jess Tuxford Lee Framp Andy Hunt 027 488 6177 Raglan/Te Awamutu/ Western Southland Gillian Beaver Te Aroha/Hauraki Christchurch Cambridge Mobile: 027 257 5599 Mobile: 027 2259488 027 444 8442 Alaistair King Cain Duncan 0204 124 4948 Hadleigh Putt Thames/Hauraki Central Southland Christchurch South Waikato/ Joshua Finn-Jones Mobile: 027 703 1743 027 456 7808 Tim Osbaldiston Taupo/ Reporoa/ 027 203 1629 Putaruru/ Tokoroa SPECIALTY MILKS Morrinsville Christchurch Mobile: 027 838 8945 Stephanie Baker • Organic Dairy Supply 021 322 128 Laura Holder Matthew Holwill Stuart Luxton 027 437 0858 Business Development North Hamilton Otorohanga/ Te Awamutu/ Bernardo Balladares Gore Te Kuiti / Taumarunui Manager Upper North Island 021 926 650 Steve Sharman Mobile: 027 592 7498 Mobile: 021 241 8797 Pirongia 027 466 0244 Nick Doney E: [email protected] Kim Hodgson Gore Bay of Plenty Karla Miller • Stolle Supply 027 498 3756 Mobile: 027 355 2355 021 748 991 • Winter Milk Supply Otorohanga Paula Twining Islay Brown Gore Waikato Phone: 0800 65 65 68 027 292 3041 Sam Carmichael Mobile: 027 602 4272 MILK QUALITY Te Aroha 027 225 6185 Johana Blackman Tash Pivott Invercargill RESULTS 021 194 9095 Haye Stienstra Waikato Fonterra Express (Automated 021 826 593 Mobile: 027 602 0532 Milk Quality Results) Putaruru Brittany Hill Mosgiel Anna Reddish Phone our Service Centre on 021584058 Marie Wood Hawkes Bay/ Wairarapa 0800 65 65 68 Matamata 027 4862 782 Mobile: 027 385 2416 RETAIL/WEBSITES Bradley Leuthard Nelson Blake Cheer 021 575 394 Caroline Neilands Fonterra Farm Source Stores Taranaki Whakatane 027 574 4688 Mobile: 027 640 0449 Customer Support Centre Chris Lawrence Oamaru Gareth Fraser (CSC) 021 367 626 John Shepherd Taranaki Phone: 0800 73 12 66 King Country 027 297 0818 Mobile: 021 824 873 store.nzfarmsource.co.nz Denis Cadman Takaka Robyn Engels 027 477 5735 Joy James Fonterra Farm Source Horowhenua/ Taupo 027 466 0469 Greater Wellington nzfarmsource.co.nz Shayla McGrory Timaru Mobile: 027 256 1079 ON-FARM SERVICE 027 278 1653 John Fahey Grant Rudman PROVIDERS North Taranaki 027 430 2811 South Taranaki/Manawatu Melissa Poingdestre Rangiora Mobile: 027 2358983 QCONZ FARM DAIRY AND 021 714 128 Nick Drinnan Emma Joyce QUALITY CONSULTANTS Central Taranaki 021 906 255 Manawatu Contact for: Farm Dairy Colin Daysh Mobile: 027 543 6140 Reports, Grades, Suspect Milk 027 273 1484 Checks, Farm Dairy Approvals Coastal Taranaki Fonterra supports the service SOUTH ISLAND offered by LifeLine. Pressure can Mirka Langford and Milk Quality Assistance Gavin Eade 027 278 1651 be a good thing, but often the Tasman/Marlborough QCONZ Freephone 0800 72 66 95 Hawera demands of work, relationships or Mobile: 027 703 2415 Sara Griffiths expectations can overwhelm us. Libby Sutherland Ryan Hall If it's all getting on top of you, General Manager 027 490 3689 North Canterbury 027 222 8862 Manawatu confidential help is available for rural communities at LifeLine. Mobile: 021 220 8283 Jillian Calow 027 431 0011 0800 54 33 54

Fonterra Farm Source >>> February 2020 29

THERE’S A STORE NEAR YOU. CUSTOMER SERVICE TEAM 0800 731 266

Albany 09 415 9776 Hawera 06 278 0124 Matamata 07 888 8149 Pukekohe 09 237 1176 Temuka 03 615 0124 Ashburton 03 307 8006 Helensville 09 420 8140 Maungaturoto 09 431 1050 Pungarehu 06 763 8806 Te Puke 07 573 0130 Balclutha 03 418 2190 Inglewood 06 756 0000 Methven 03 302 9056 Putaruru 07 883 8077 Tokoroa 07 886 7933 Cambridge 07 827 4622 Invercargill 03 218 9067 Murchison 03 523 1040 Rai Valley 03 571 6325 Waihi 07 863 7227 Carterton 06 379 7726 Kaikohe 09 4052 305 Morrinsville 07 889 7049 Rakaia 03 303 5000 Waimate 03 689 1230 Culverden 03 315 3016 Kaitaia 09 408 6023 New Plymouth 06 759 0490 Rangiora 03 313 2555 Waipapa 09 407 1375 Dannevirke 06 374 4052 Kaponga 06 764 6281 Ngatea 07 867 0003 Reporoa 07 334 0004 Waitara 06 754 9100 Dargaville 09 439 3080 Kopu 07 867 9056 Oamaru 03 433 1240 Rotorua 07 348 4132 Waiuku 09 236 5088 Edgecumbe 07 304 9871 Leeston 03 324 3645 Opotiki 07 315 1018 Ruawai 09 439 2244 Waverley 06 346 7021 Featherston 06 308 9019 Levin 06 367 9100 Opunake 06 761 6011 Shannon 06 362 9000 Wellsford 09 423 8837 Feilding 06 323 9146 Longburn Otautau 03 225 8951 Stratford 06 765 5348 Whangarei 09 430 0050 (Palmerston North) 06 356 4607 Galatea 07 366 1100 Otorohanga 07 873 8039 Taupiri 07 824 6748 Winton 03 236 6046 Manaia 06 274 8029 Gore 03 203 9334 Paeroa 07 862 7541 Taupo 07 378 1515 Wyndham 03 206 2010 Marton 06 327 7206 Hamilton 07 846 6069 Pahiatua 06 376 0040 Te Aroha 07 884 9549 Te Awamutu 07 871 4058

FARM SOURCE TECHNICAL SALES REPRESENTATIVES

Mark Douglas TECHNICAL SALES MANAGER, 027 704 8429 Martin Weir Stratford, 027 675 0953 Shaun Ruddell Dargaville, Ruawai, 027 285 7088 Kathryn Milne Waverley/Hawera South, 027 540 4754 Kerrin Luond Wellsford, Helensville, 027 270 3981 Shaun Morresey Opunake/Manaia, 027 233 1348

Fleur Scelly Waipapa, Kaitaia, Kaikohe, 027 233 1683 TARANAKI Dean Kane Kaponga , 027 204 4395 Jamie Lang Whangarei, 027 285 7094 NORTHLAND Mark Douglas Whangarei South, Maungaturoto, 027 704 8429

SENIOR TECHNICAL SALES REPRESENTATIVE Bryn Sanson Dwayne George TECHNICAL SALES MANAGER, 027 243 1121 027 405 2654 Joanne Denton Dannevirke, 027 292 8096 Vaughan Holdt Pukekohe, Waiuku, 027 240 6377 Danielle Harvey Feilding, 027 807 0409 Jaimin Benton Ngatea, 027 225 5523 Jessica Morrison Featherston, Carterton, 027 208 2055 Julie Ashworth Kopu, Paeroa, 027 807 7265 Steve Holdaway Longburn, 027 617 1797 Sharne McLachlan Taupiri, 027 478 1421 Linda Hally Shannon, Levin, 027 236 4897 Ryan Jackson Te Aroha, 027 225 5524

NORTH WAIKATO NORTH Val Hollister Pahiatua, 027 221 7623 Hayley Benfell Morrinsville, 027 704 5323 Zoe Haylock Hawkes Bay, 027 318 6981 Sarah Henderson Morrinsville, 027 245 7000 CENTRAL DISTRICTS CENTRAL Tony Maas Marton, 027 801 9639

Luke Spence TECHNICAL SALES MANAGER, 027 294 1334 Kirsty Skinner TECHNICAL SALES MANAGER, 027 839 4873 Neil Dunderdale Otorohanga, 027 494 5433 Logan Tasker Ashburton, 027 676 6524 Vacant Putaruru Alice Cartwright Ashburton, 027 555 8976 Scott Kirkham Tokoroa, 027 284 4704 Phil Rains Leeston, Rakaia, 027 687 9464 Debbie Thomson Te Awamutu, 027 233 1675 Bronwyn Gilchrist Rakaia, Methven, 027 453 4358 Jarno Sammet Te Awamutu, 027 492 2957 Rodney Potts Rangiora, 027 363 6308 Nick Anderson Hamilton, 027 607 5898 Max Munro Waimate, Temuka, 027 482 8076

SOUTH WAIKATO SOUTH Cam Neeld Cambridge, 027 681 1250 Diane Heinz Oamaru, 027 220 3790 Warren Coulson Matamata, 027 458 7527 Neil Cooper Murchison, 027 889 3889 Mark Waldron Temuka, Waimate, 027 511 4886

CANTERBURY / TASMAN / CANTERBURY Jen Kay Culverden, 027 807 5306 / MARLBOROUGH /

Quentin Brears TECHNICAL SALES MANAGER, 027 554 2229 Derek Gibson Edgecumbe, 027 483 4395 Gav Brears Taupo, 027 226 8348 Jamie Callahan TECHNICAL SALES MANAGER, 027 405 8184 Adam Borriello Te Puke, 027 248 9279 Shannon Topp Gore, 027 809 8368 Daniel Stoupe Rotorua, Galatea, 027 839 2051 Korena McDermott Gore, 027 645 4451

BAY OF PLENTY OF BAY Donna Scott Reporoa, 027 807 5330 Laura Christensen Wyndham, 027 220 3771 Lindsay Youngman Otautau, 027 839 9432 Elyse Fletcher Invercargill, 027 678 0661 Vacant Invercargill/Otautau Cliff Duggan TECHNICAL SALES MANAGER, 027 839 1598 Julia Wyatt Winton, 027 449 9393 Neville Giddy New Plymouth, Waitara, 027 477 2641 Codey Patterson Winton, 027 220 3806 OTAGO / SOUTHLAND / OTAGO Andrew Tulloch Inglewood, 027 224 5137 Marinka Kingma Balclutha, 027 511 4880 Valma Kuriger Opunake/Pungarehu, 027 673 2306 Morgan Lindsay Balclutha, 027 435 3596 David Sattler Eltham/Kaponga, 027 209 9375 TARANAKI Corryn Soothill Hawera, 027 511 4871

Fonterra Farm Source >>> February 2020 UNDERSTANDING FONTERRA SHAREHOLDERS’ YOUR CO-OPERATIVE COUNCIL PROGRAMME REGISTRATION OF INTEREST 2020 “If more of the Shareholder base understood This programme is your opportunity to get a detailed and had access to this understanding of Fonterra’s business including the information, I think markets it sells to. Hear from and interact with there would be members of Fonterra’s Management Team, Board of better engagement” Directors and Shareholders’ Council.

• Understand Fonterra’s unique governance representation/management structure; • Find out how Fonterra Global Dairy Trade, Fonterra Ingredients, Fonterra Group Manufacturing, Sustainability, our Fonterra Consumer & Food Service and Farm Source all fit together. • Discover more about Fonterra’s brands and try some of our latest award-winning products.

This Programme is part of the Shareholder’s Council’s commitment to help develop a more knowledgeable farmer base. Participation in the Programme is highly sought after - register your interest now!

WHERE: The Fonterra Centre, Auckland DATES: £7 & 8 April £2 & 3 July £1 & 2 December Note: Depending on where you are travelling from, you may be required to arrive in Auckland the day before, which would mean staying two nights. Day One starts at 9am and Day Two ends at approx 3pm. PAYMENT: $250.00 (incl GST) per person RETURN TO: Jo Griffiths Fonterra Shareholders’ Council, [email protected]; 021 861 726

YOUR DETAILS NAME MOBILE

ADDRESS EMAIL

Supply No. Ward No.

REGION Shareholder £ Sharemilker £

Other £

PAST PARTICIPANTS SAID:

“An excellent “Very informative couple of days. two days. How can we get more Going away staff, sharemilkers and “Very good feeling positive “Whole shareholders programme. about what people programme “Wonderful to attend?” I have come away with are doing extremely good. two days. a much better within Fonterra.” Learnt so many new I am proud of our understanding. things, and met new co-op and staff. We This programme should people, and heard their are Fonterra.” be compulsory to passion about what Supplier Shareholders they were to attend.” doing.” UPDATE YOUR DETAILS THIS SEASON Please take five minutes to update us with your new details for the season ahead.

 To make it easier for you, there are a number of ways to update your details, including a new online form.

EMAIL FREEPHONE FREEPOST Fill in your details and email a Contact us on Send your details to scanned copy back to us at 0800 731 266 and we Moving Farms Freepost [email protected] will update your details PO BOX 9045 Hamilton, 3240

STEP 1. YOUR CURRENT DETAILS STEP 3. MAIN CONTACT FOR YOUR STORE ACCOUNT

Supply no.: Title (please circle) Mr / Mrs / Miss / Ms

Full name: Entity name:

Phone: Contact name: Mobile:

Physical address: Email:

Date of birth: D D M M Y Y Y Y

Phone: STEP 4. FARM SOURCE REWARDS DISCOUNTS

As part of Farm Source Rewards, you can enjoy the convenience Mobile: of running your utilities such as power, phone, internet, fuel and more through your account at heavily discounted prices – Email: all while earning Farm Source Rewards Dollars. □ I’d like to find out more about how I can save more by running my utilities through my new account. STEP 2. YOUR NEW DETAILS □ I’m already running my utilities through my account and would like to discuss transferring these through to my new account. Supply no.:

Signed: Entity name:

Date: D D M M Y Y Y Y Contact name: Name: Physical address: (if different from above) Changing your sharemilker or contract milker next season? We’ve launched a new online form to make it faster and easier for you to add, change or remove a milking arrangement. The new forms are available on the Farm Source website at nzfarmsource.co.nz/milkingarrangements Phone:

Mobile:  Email:

Update your details online You can now update your People, Party and Bank account details online. Go to NZFARMSOURCE.CO.NZ/PARTYDETAILS Fonterra Farm Source >>> >>> September February 2020 2018 CUT ALONG DOTTED LINE DOTTED ALONG CUT Why ‘Doing Your Homework’ Pays Off For Farmers

Giving up wages to go contract milking is Agribusiness Management. They’re due to graduate in March 2020, which will be an immensely proud moment to share with an exciting prospect – but how can you be their two young daughters and extended family. sure you’ll make a profit? The pair have found that education is the key to getting the most out of their business and industry relationships – including their That was the scenario Matthew and Kelly Fowlie faced while living bank manager, accountant, sales reps and potential employers. in Whakatāne several years ago. “I earnt good money as a high school science teacher and Matt was on good wages as a farm “You get more out of people if you’ve got a good base manager. We couldn’t actually find a contract milking job that understanding yourself,” Kelly explains. “For example, if you covered what we earned,” Kelly explains. turn up to the bank and understand what cashflow is and how to do your budgets, you’re going to get more support because Fortunately, Matt was studying financial management and they’ll think ‘these people have actually done something to help planning as part of his Diploma in Agribusiness Management themselves’. Being prepared like that is a huge advantage. through Primary ITO so knew exactly what to look for when considering contract milking roles. “Also when you sit down with a potential employer and say, ‘well actually this doesn’t quite look right. We can’t take the job “He analysed the cashflows and calculated budgets for because of this’. It makes them think ‘these people actually know prospective jobs. That was a big turning point for us – otherwise what they’re doing’. The Diploma has given us a good all-round we would have just been stumbling around trying to work out understanding of our business so we can communicate effectively whether the job was going to make us enough money because and create a good impression.” it’s so easy to get lost and end up making nothing. There’s a lot of jobs out there like that, or you end up making less than you are on The couple made the step up to sharemilking 18 months ago and wages,” Kelly says. are enjoying the freedom that comes with it. “The physical side isn’t much different,” Matt says. “But it’s really cool to look around Banks are also reluctant to lend money to help people into and think ‘these are my cows’. You have a lot more control over contract or sharemilking arrangements if there isn’t a clear the decisions you make.” budget that proves the venture will be profitable. Kelly says their income has “probably halved” going from contract “Banks get nervous because a lot of people get caught out. But milking 950 cows to sharemilking a herd of 180, but their costs are if you take the time to do a budget in the first place, you can see different too so it’s all relative. pretty quickly whether you’re going to make any money out of it.” “We’re paying off an asset now rather than just having cash in Matt counts himself lucky that his employer at the time was quite hand. Now we have equity and every year our equity is growing open with sharing financial information and encouraged the pair because every year our cows reproduce. So we’re able to grow to find the right contract milking opportunity so they could keep that way.” moving forward in the industry. The Fowlies have their sights set on buying their own farm within “He really helped us out with what we should be looking for and Grow to your the next eight to 10 years and with their Agribusiness Diplomas even did background checks for us. He was very supportive.” under their belts, they know they’ll get there. The benefits of studying have continued to pay dividends for the “We’ve always both been very much on the same page about Fowlies, who have now progressed to 50/50 sharemilking 180 where we want to go,” Matt says. “We’re flexible around how cows on a 50ha farm at Manawaru, between Matamata and Te full potential that looks but we’re both focused and driven which makes it a lot Aroha. easier. We’ve got our plan, we’ve talked to the bank and we know Kelly followed in her husband’s footsteps by enrolling with it’s possible. It’s just a matter of keeping the faith.” with a Diploma in Agribusiness Management Primary ITO and both have now completed their Diploma in

BUSINESS PLANNING FINANCIAL MANAGEMENT HUMAN RESOURCES RESOURCE MANAGEMENT & MANAGEMENT & PLANNING (STAFF MANAGEMENT) & SUSTAINABILITY Learn how to create a sound Learn to talk to your bank Learn to grow a team that Learn how to harness your business plan manager with confidence will grow your land and resources business

0800 20 80 20 I www.primaryito.ac.nz primaryitodiploma.co.nz Why ‘Doing Your Homework’ Pays Off For Farmers

Giving up wages to go contract milking is Agribusiness Management. They’re due to graduate in March 2020, which will be an immensely proud moment to share with an exciting prospect – but how can you be their two young daughters and extended family. sure you’ll make a profit? The pair have found that education is the key to getting the most out of their business and industry relationships – including their That was the scenario Matthew and Kelly Fowlie faced while living bank manager, accountant, sales reps and potential employers. in Whakatāne several years ago. “I earnt good money as a high school science teacher and Matt was on good wages as a farm “You get more out of people if you’ve got a good base manager. We couldn’t actually find a contract milking job that understanding yourself,” Kelly explains. “For example, if you covered what we earned,” Kelly explains. turn up to the bank and understand what cashflow is and how to do your budgets, you’re going to get more support because Fortunately, Matt was studying financial management and they’ll think ‘these people have actually done something to help planning as part of his Diploma in Agribusiness Management themselves’. Being prepared like that is a huge advantage. through Primary ITO so knew exactly what to look for when considering contract milking roles. “Also when you sit down with a potential employer and say, ‘well actually this doesn’t quite look right. We can’t take the job “He analysed the cashflows and calculated budgets for because of this’. It makes them think ‘these people actually know prospective jobs. That was a big turning point for us – otherwise what they’re doing’. The Diploma has given us a good all-round we would have just been stumbling around trying to work out understanding of our business so we can communicate effectively whether the job was going to make us enough money because and create a good impression.” it’s so easy to get lost and end up making nothing. There’s a lot of jobs out there like that, or you end up making less than you are on The couple made the step up to sharemilking 18 months ago and wages,” Kelly says. are enjoying the freedom that comes with it. “The physical side isn’t much different,” Matt says. “But it’s really cool to look around Banks are also reluctant to lend money to help people into and think ‘these are my cows’. You have a lot more control over contract or sharemilking arrangements if there isn’t a clear the decisions you make.” budget that proves the venture will be profitable. Kelly says their income has “probably halved” going from contract “Banks get nervous because a lot of people get caught out. But milking 950 cows to sharemilking a herd of 180, but their costs are if you take the time to do a budget in the first place, you can see different too so it’s all relative. pretty quickly whether you’re going to make any money out of it.” “We’re paying off an asset now rather than just having cash in Matt counts himself lucky that his employer at the time was quite hand. Now we have equity and every year our equity is growing open with sharing financial information and encouraged the pair because every year our cows reproduce. So we’re able to grow to find the right contract milking opportunity so they could keep that way.” moving forward in the industry. The Fowlies have their sights set on buying their own farm within “He really helped us out with what we should be looking for and Grow to your the next eight to 10 years and with their Agribusiness Diplomas even did background checks for us. He was very supportive.” under their belts, they know they’ll get there. The benefits of studying have continued to pay dividends for the “We’ve always both been very much on the same page about Fowlies, who have now progressed to 50/50 sharemilking 180 where we want to go,” Matt says. “We’re flexible around how cows on a 50ha farm at Manawaru, between Matamata and Te full potential that looks but we’re both focused and driven which makes it a lot Aroha. easier. We’ve got our plan, we’ve talked to the bank and we know Kelly followed in her husband’s footsteps by enrolling with it’s possible. It’s just a matter of keeping the faith.” with a Diploma in Agribusiness Management Primary ITO and both have now completed their Diploma in

BUSINESS PLANNING FINANCIAL MANAGEMENT HUMAN RESOURCES RESOURCE MANAGEMENT & MANAGEMENT & PLANNING (STAFF MANAGEMENT) & SUSTAINABILITY Learn how to create a sound Learn to talk to your bank Learn to grow a team that Learn how to harness your business plan manager with confidence will grow your land and resources business

0800 20 80 20 I www.primaryito.ac.nz primaryitodiploma.co.nz

Fonterra Farm Source >>> February 2020 Our Co-operative is made up of amazing people, our farmer owners and employees, Our Goals and the people we connect with in our Healthy Healthy Healthy communities. people environment business Our Co-operative is stronger when we work together, in the good times and in the tough times. That’s the essence of our purpose and the title of this report – You, me, us together Ta-tou, ta-tou (all of us together).

Over the past 18 months we’ve taken a hard look in the mirror. We have listened to each other to understand what connects us what inspires us and how we work together to create goodness now and for generations to come. Our Values This has provided us with the foundation Co-operative Do what’s Challenge Make it for a powerful purpose statement. This is spirit right boundaries happen our starting point, the ‘why’ we exist, that connects and resonates with our farmer owners and employees.

It also reinforced the importance of our operative Co-operative’s values, and the need to

change the way we behave, connecting - our strategy, our decisions and actions to our purpose and values. At our heart we are a New Zealand dairy co-operative, doing amazing things with our farmers’ milk to enhance people’s lives and create value for farmers and customers. Our Purpose We are clear what our goals are: Our Co-operative, Healthy people Empowering people Healthy environment To create goodness for generations. Healthy business You, me, us together This comes to life Ta-tou, ta-tou through our new strategy Our Co Our