NZ DAIRY ON THE WORLD STAGE - DairyNZ - DairyNZ · PDF filePage 6 Confidential to Fonterra...
Transcript of NZ DAIRY ON THE WORLD STAGE - DairyNZ - DairyNZ · PDF filePage 6 Confidential to Fonterra...
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Confidential to Fonterra Co-operative Group
NZ DAIRY ON THE
WORLD STAGE
Theo Spierings, CEO Fonterra
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Confidential to Fonterra Co-operative Group
1. International Farm Comparison Network (IFCN), Economist Intelligence Unit (EIU), Euromonitor, Fonterra analysis . Measured as total global imports.
2. Euromonitor.
20b L 66b L 406b L
25bn L (2% CAGR)
New Zealand Globally Traded Dairy Market¹ Formal Dairy Market²
91bn L (5.5% CAGR)
465bn L (2.3% CAGR) 2014 Baseline
2020 Projection
• Significant participant in
tradable market • Global export/import market
• Informs Milk Price
• Reflects total dairy demand
GLOBAL DAIRY MARKET
Our strategy in a demand-led market
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Note: Trade expressed in terms of tonnes of Liquid Milk Equivalent (milk standardized to 4.2% fat and 3.5% protein).
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LM
E (
billi
on
)
Net Exports - Powders Net Exports - Other Net Imports - Powders Net Imports - Other
NZ EU27 US Australia Russia China Asia ME & Africa
China – imports at
more normal levels
in 2015 (higher in
2013/14 due to
supply shock). Plus
product mix changes
Asia and Middle
East – imports
growing steadily
EU – more than
2.6bn litres
additional milk
since 2013
Russia –
embargo
increasing
volume of EU
exports to
Asia
GLOBAL DAIRY MARKET
Globally traded market impacting prices
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GLOBAL DAIRY MARKET
What do we believe?
DEMAND DRIVEN NZ GROWTH 2-3% MILK IN OTHER MARKETS
© Fonterra Co-operative Group Ltd. Page 5
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Deliver on Foodservice potential
Selectively invest in milk pools
Grow our Anlene™ business
Develop leading positions in
paed & maternal nutrition
Optimise NZ milk
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Align our business and organisation
Build and grow beyond our current
consumer positions
3
2
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• Optimising NZ milk
– Optionality at peak
– Efficiency and innovation
– Value add / speciality
ingredients
• Increasing volume through
value-add consumer and
foodservice
– Moved additional 300m
LME into consumer and
foodservice in nine months
DIRA
GDT
Ingredient
Sales
Foodservice
Consumer
STRATEGY DELIVERING
Adding value
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STRATEGIC RATIONALE
• Enable our development of higher
margin consumer brands and
foodservice opportunities (Chile,
China, Australia)
• Secure access for our NZ milk
exports (China, Sri Lanka)
• De-risk supply for ingredients
customers (Australia, Europe)
• Optimise our ingredients
manufacturing footprint (Europe)
VOLUME
Complimenting NZ milk
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VALUE
Through global brands
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Recurring
One-time
$410m
$430m
Milk Price
EBIT
Balance sheet
Cash flow
VELOCITY
Owner’s mindset, cash focus
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VELOCITY
WHAT’S NEXT?
DISRUPT Tell our Story
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AT HOME
- Stay on strategy
- Efficiency And Innovation
- Social Responsibility
- Tell our Story
IN MARKET
- Defend marketshare
- Tell our NZ story
- Volume to Value at Velocity
- Disrupt
HOW DO WE SUCCEED?
Stay the course
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ENDS / appendix
Stronger Co-op
From our
Co-operative
30,000 strong A promise we keep from our
farms to your home
Our Ambition
Making a difference in the lives of 2 billion people
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ENDS
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