The ongoing strong demand for dairy has caused Fonterra Co-operative Group to revise its FY23 forecast guidance from 30-45 cents per share to 46-60.
Fonterra CEO Miles Hurrell said demand signals at the end of FY22 have continued, driving improved prices and higher margins across the portfolio, particularly in cheese and protein products such as casein.
“We see strong underlying demand and the latest lift in whole milk powder prices on GDT is also a positive signal reversing the recent easing in the prices that drive our Farmgate Milk Price.
“Strong offshore prices for protein, as reflected in the recent increase in EU and US milk prices, mean our protein portfolio has been performing very well,” Hurrell said.
The sustained period of favourable pricing will see protein, cheese, and whole milk powder portfolios drive the FY23 guidance increase.
“We are committed to our 2030 targets and expect variable market conditions as we work towards them. The benefit of being part of the Co-op is having a diversified organisation with an extensive portfolio of products which allow us to capture value in a broad range of market conditions, benefiting both farmer owners and unit holders,” he said.
New B2B wellbeing brand launched
Fonterra has launched Nutiani, a business-to-business brand it says is targeted at both the multi-billion-dollar medical and everyday wellbeing nutrition markets.
Komal Mistry-Mehta. (Image source: Fonterra)
Fonterra’s chief innovation and brand officer Komal Mistry-Mehta says the creation of the new brand brings to life concepts that help customers tailor their products to meet consumers’ evolving wellbeing nutrition needs.
“Our health and wellbeing customers are facing growing pressure to accelerate their innovation pipeline to respond to these dynamic consumer demands, yet they face common challenges during new product development and are looking for partners to fill their capability gaps.
“Nutiani answers this need by providing a suite of solutions which help customers tackle the pain points associated with each step of the innovation journey – from identifying the opportunity to validating the final product,” said Mistry-Mehta.
Nutiani will offer end-to-end solutions to customers through a combination of wellbeing nutrition products, concepts and services that leverage the Co-op’s intellectual property and investments in research.
“We see a clear opportunity to win in critical segments of the global wellbeing nutrition space. Fonterra’s deep expertise in nutrition science gives us an incredible advantage here.
“We will use Fonterra’s existing expertise in nutrition science to develop targeted solutions, while opening up opportunities for strategic partnerships to deliver access to new markets and consumers,” said Mistry-Mehta.
The opportunity for the Co-op is significant. The global markets for physical, mental and inner wellbeing nutrition are growing at 6 per cent per year and are worth US$66 billion. Medical nutrition is valued at US$50 billion and is growing 5 per cent annually.
“There’s no doubt that people are paying more attention to wellbeing and managing it through diet. Research shows 96 per cent of consumers actively manage their wellbeing, with more than half of these consciously managing their diet to improve their wellbeing.
“To create a greater impact in the health and wellbeing space, we must not only capture the opportunities we see today but also look
