introducing fonterra confidential to fonterra co-operative group insert date
TRANSCRIPT
INTRODUCING FONTERRA
Confidential to Fonterra Co-operative Group
Insert Date
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Confidential to Fonterra Co-operative Group
Fonterra is the world’s largest processor of dairy products
Taking New Zealand Milk to the World
Milk Collection
• 22 billion litres of milk a year
• Pasture-based milk collection
Tankers
• 483 milk tankers in 13 depots and 1,400 tanker operators
Processing• 33 sites in NZ
• 76 Plants
• Largest milk dryers in the world
Warehousing• 103 stores, 45
temperature controlled
•Supporting road and rail networks to container pack locations, 7 sited on port
Sales• Global sales
network
• ~30% of NZ milk via Global Dairy Trade (GDT)
• ~ 74,000 delivery orders p/a
Shipping• 11 NZ ports
• 1800 voyages p/a
• 165,000 containers p/a
• 2.3 million metric tonnes of exports
Business Customers• Customers in
more than 100 countries
• Customers include GDT, Fonterra consumer division and external business customer sales
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Confidential to Fonterra Co-operative Group
1. Growth rates represent forecast compound annual growth rates. Current volumes are represented by the area of the circles displayed2. Although strong growth in demand is expected in India, it is expected that the ability to supply into India will continue to be constrained by relatively high barriers to trade for dairy products
Source: Fonterra estimates
MENA
2%
4%
10%
India2
7%
7%
China
4%
2%
LATAM
2%2%
ANZ
1%
1%
Nth America
<1%
1%
Europe
<1%
Outlook to 20201
ASEAN
2-3%
4%
Demand Growth Supply GrowthDemand Volume Supply Volume
A future focus on emerging markets
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Confidential to Fonterra Co-operative Group
…and supplementing it with integrated milk pools in key markets
AustraliaBrazil
ChinaChile
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Confidential to Fonterra Co-operative Group
New Zealand Processing Sites
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Confidential to Fonterra Co-operative Group
USA
Sri Lanka
Ecuador
Colombia
Argentina
Brazil
Chile
Malaysia
Saudi Arabia
Venezuela
…and flexibility around the world
DairiConcepts
50/50 JV with Dairy Farmers of America
9 sites
Cheese, powders, cheese concentrates, milk protein concentrates, functional dairy replacement systems, hard Italian cheese
New Zealand
Australia
11 sites
Fresh milk, powder, cheese, ice cream and yoghurt
Australia
Malaysia
2 sites
Canned milk powder, fresh milk, UHT, cultured products, acidified milk products
Colombo
Milk powder in sachets, fresh milk, UHT, cultured products
Saudi NZ
Milk Products
100% Fonterra
Processed cheese, sachet and canned milk powders, Feta
Soprole
99.4% Fonterra
Consumer dairy producer – milk, UHT, yoghurt, spreads, desserts
Prolesur
JV with Soprole
Cheese, milk powder, butter, whey permeate powders
Dairy Partners America
50/50 JV with Nestle
13 sites
Collection and processing fresh milk. Manufacture of dairy products, marketing and distribution of ingredient commodities and consumer goods
Indonesia
New blending and packaging plant announced April 2012.
Indonesia
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Confidential to Fonterra Co-operative Group
Base nutrition
SKIM MILK POWDERBUTTER
CHEESE
WHEYWHEY POWDERS
CASEIN/ATES
LIQUID MILKS AND CREAMS
LACTOSE
WHOLE MILK POWDER
ANHYDROUS MILK FAT
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Confidential to Fonterra Co-operative Group
Leading consumer brands
SOME OF OUR LEADING BRANDS
Australia / New Zealand
Asia / Africa / Middle East
Latin America
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Confidential to Fonterra Co-operative Group
Out of Home nutrition
• Out-of-home solutions e.g. restaurants, hotels, cafés, airlines, work places, entertainment venues and institutions
• NZ$1 billion segment for Fonterra, across 50 countries
• Cheese, cream, butter, yoghurt, pastries and beverages
• Specialities are culinary creams for chefs and low sodium sliced cheese
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Confidential to Fonterra Co-operative Group
…with quality testing and trace back systems…
• Highest quality milk and ingredients
• World-best practice processes throughout our supply chain – control of product quality from farm to customer
• World class quality assurance
• Manufacturing sites certified to ISO9001:2000 standards
• Laboratory product testing – ISO7025 accredited
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Confidential to Fonterra Co-operative Group
Contributing to New Zealand
Source: NZIER, 2010.
Dairy provides 26% of New Zealand’s
exports.
$1 rise in Fonterra payout makes
every New Zealander $300
better off.
Dairy farmers spend about 50c in
every dollar on local goods and
services.
Of the $7.5 billion dairy farmers
received in 2009, $3.6 billion was
spent on domestically
produced goods.