He is a top businessman who is a water equaity capital trader. In other words, he successfully turns water (a water-based product) into banking capital for investment. He moves water’s benefits well.
He melded 10,500 NZ dairy farmers to think one way. Out of NZ. The exporting of NZ’s capital earned from water, turned white, to then become cash or gold. The gold can be invested or transferred in other parts of the world. His name is Sir Henry van der Heyden. He introduced a Dutchman, Theo Spierings as the new CEO of NZ dairy giant Fonterra. Theo writes and thinks clearly.
“Hey, it’s politics,” Sir Henry says of what he achieves in business acting as a face of change in NZ.
Like dairy. He now wants to meld the agricultural sector of the meat industry to be like a Fonterra. Same same is what NZX types think should happen with beef, another way of turning water into gold that is transferrable offshore for investment. “It is a job for a young man,” says Henry of the agricultural wrangle, to progress change. (more…)
A TPP DEAL AS GOLDEN AS NEW ZEALAND’s QUALITY BUTTER IS SOUGHT – NZ MUST NOT SETTLE FOR LESS THAN GOLDEN DEAL ON TPP
Photo: Gold bars NZ. Mainland Inc.
Political commentators talk of the TPP today. The NZH has good commentary. Read direct here. Or read on.
NZ gets down to business today with nine days in Auckland talking through a TPP deal. The deal recognizes regional trading between nations involved.
Protectionism is a real factor to watch. Few countries don’t see much of a future in closing their markets to foreign competition any more. Being open to a range of cultures makes you strong. A strong economy can happen as a result.
Tariff barriers haven’t risen post the GFC. A good thing. Without trade, a nation’s economy doesn’t grow. Or, new money doesn’t come into the national piggy bank (otherwise known as a nation’s total economy) unless robust trade occurs. Monopolies within nations must not dominate trade talks either. Especially in the early stages of talks for trade. Otherwise the incentives for trade can be slower than need be for the wider good.
The spirit of trade is that all people win. Thus protectionism is an area to watch there that all foreign investors and traders will be watching across trading nations of The TPP very closely.
Having written that, protecting the right things, is also healthy in trade talks. Something that NZ’s intellectual-academics look out for very well for New Zealanders, for example. If done right, their insights are healthy. We should value them too as a sounding board in the trade talks proceess.
New Zealand is one of those nations that has reduced its barriers of its own accord and has done deals with countries of a similar outlook. The TPP is one arena that reflects a desire to trade more in trade talks already started by New Zealand, Singapore, Brunei and Chile. The United States, Canada and Mexico join the talks with NZ and Pacific Rim nations.
The USA’s strategic considerations are used as a heavy bargaining point in US trade policy talks. (For example the USA-Britan-France are the biggest weapons sellers in the world). The US in particular can bring that element into trade talks quite heavily (arguing -you never can be too prepared when it comes to ‘security’) in order to heavily promote the USA’s range of products, for example – that it has to move and barter with. (more…)
“We crave attention from the great world; the merest glance is as opium to an addict for us.” Though not as much as opposing unjust “crimes against scrabble.”
–Paul Little says it’s scrabble over fame or meds any day… in New Zealand.
~Posted by Horiwoodblog, Aotearoa New Zealand, Polynesia Asia-Pacific. 2.12.12~
“They took everything.”
–Kiwi humor is reflected on a New Zealand’s newspaper’s website today, the morning after Fonterra’s float with a “gold heist” ‘story’ of ‘pirates’ in the ‘Dutch Caribbean’ terrains. Apparently, pirates jumped aboard a boat carrying gold and took everything. Shocking! (more…)
It’s the day after Fonterra’s float. The NZ population is listed as being 1 in 7 Maori citizens of NZ. They signed a Treaty to have access to water’s benefits 171 years ago. Effectively Fonterra offered a bunch of shares into water’s produce via NZ farms. The shares offered did not go the way of Maori people in a 1 in 7 buy in model of Fonterra.
In fact 42% of the shares offered went to foreign investors (using an Australian face to buy them, mainly). I guess I am a bit angry, as if the NZ government and NZ’s private business sector, repeatedly don’t give Maori people legal support to benefit from water’s flows and natural resources flows in and from NZ (or in the wider world), then the NZ government continually is creating extra hardship for Maori peoples burgeoning needs of the future. NZ’s corporate culture is too.
Feeling mixed emotions today about all of that… Of the 20,000+ blog posts created on this website, Page 5 of Google’s online link lists for this website chooses to feature: WORDS: FORGIVE + FORGIVENESS « Horiwood’s Blog as recommended reading for this site. Being a Maori-Kiwi, your entire life you’ve continually had to forgive more so than most New Zealanders have had to. (more…)
AUSSIE SUCKS: AUSTRALIAN INVESTORS PREFERENCED IN FONTERRA NZ MILK FLOAT – NZ’s GLOBAL CHAMPION COMPANY
“The only truly global champion that New Zealand has. The investment bankers are very excited by the pipeline.”
–Tim Bennett morning after Fonterra Dairy Co-Op’s partial float.
Bryan Gaynor wrote:
There was considerable anger that 42 per cent of the total offering was allocated to offshore institutions, mainly Australians.
Fonterra argues that overseas investors give more depth and liquidity to the secondary market but only time will tell whether this is true. (more…)
A picture of NZ today. Milk. Fonterra, Foreign Investors. Water flowing out into foreign bank accounts. Good? Bad? Or who cares?
Image: Deposit photos.com. Australia and foreign investors were preferenced to buy up large into access of NZ’s water suppply chain. Let’s face it, we gave them a straw.
~Posted by Horiwoodblog, Aotearoa New Zealand, Polynesia Asia-Pacific. 30.11.12~
Units in the new Fonterra Shareholders Fund have debuted at $6.66 per unit – a $1.16 premium to their $5.50 issue price.
At $5.50, the units are expected to yield 5.5 per cent a year.
The unit’s debut coincided with the official opening of Fonterra’s new $500m milk processing plant near Christchurch.
The plant will process 2.2 million litres of milk a day into whole milk powder bound for South East Asia, China, and the Middle East.
–Reporting Jamie Gray. Gotta say… the South Island’s had a bumper year. Max use of water from the South. Fonterra’s new friends have had a good year too. :)
- – -
Question: Now who owns the water?
~Photo: Old Skool Kiwi Dairy. Freeze, Flowing or Dried. Posted by Horiwoodblog, Aotearoa New Zealand, Posted by Horiwoodblog, Aotearoa New Zealand, Polynesia Asia-Pacific. 30.11.12~
DAIRY + PHARMAC + HEALTHY NON-PHARMAC PRODUCTS + WATER PRODUCTS + A BIT OF OIL + EMPLOYMENT + EDUCATION …. TPP & RCEP TRADE TALKS OPPORTUNITIES
A bit of homework: Trade Talks NZ for TPP & RCEP:
TPP negotiating nations in the mix for New Zealand to trade with are Singapore, Australia, Mexico, Brunei, Chile, Peru, Vietnam, Malaysia and the United States. Thailand wants buy in. Japan could too.
At the same time, New Zealand is currently juggling the Regional Economic Cooperation Partnership trade deal too. The Association of South-East Asian Nations and China are in the mix of that deal. The US isn’t in on that one.
The TPP is seen as “high quality.” It limits exclusions of trade between nations. Some political parties in NZ oppose the TPP. (more…)
Milking it – NZ’s stand out success story: Milk production soars 11.3%.
The power of water, sunlight, farmers labor and utlilizing natural resource and lands heavily.
Two questions: who owns the water? and: the how’s the environment looking in a good news, year end tale for farmers?
The new report notes: Average herd size was 393, due to the expansion of the dairy herd in the South Island. A decade ago, 271 cows was the average farmer’s herd. (more…)
It was a busy week for New Zealand in regards to foreign affairs and future trading deals, early rounds of talks for New Zealand’s emerging markets.
New Zealand’s current economic and human rights context: We need to export more as we’ve been quite lazy to date on that front, hence New Zealand’s current debt status. So trading New Zealand made products and technology into markets abroad that have the population numbers to consume and buy is New Zealand’s biggest challenge to improve the quality of life for most New Zealanders (not just a few) in future years. That part excites most New Zealanders who have committed to stay in New Zealand to improve the current situation. (more…)
AUNG SAN SUU KYI CELEBRITY APPEARANCES NEWS – A THOUGHTFUL, INSIGHTFUL & CONTRUCTIVE MEETING FOR JOHN KEY
A celebrity is simply someone who is worthy of being celebrated. As a character on the global stage, Myanmar/ Burma’s Aung San Suu Kyi is one such person. Against a backdrop of shocking human rights abuses, Suu Kyi was cast in a really bad house arrest movie that lastest fifteen odd years. Suu Kyi’s story created a tolerance icon of a new world. She has since become a leading figure on human rights enlightenment matters.
New Zealand’s Dominion Post published via Stuff these words: “Celebrated democratic reformer Aung San Suu Kyi dreamed of visiting New Zealand during her 15 years under house arrest.
Suu Kyi met with (New Zealand) Prime Minister John Key late last night (NZT) and took the opportunity to thank New Zealanders for their support during Myanmar’s struggle for democracy.
After the 30 minute talks at Key’s Naypyitaw hotel she told reporters she will come to New Zealand in the “not too distant future”.
“The two countries that I would think about were Canada and New Zealand. Because I thought those places were unpolluted areas and of course I have always thought that New Zealand was rather romantic – the land of the long cloud and so on. Not to mention the kiwifruit,” she said. (more…)
NZX Fonterra Shares…. here ya go…
~Posted by Horiwoodblog, Aotearoa New Zealand, Polynesia Asia-Pacific. 1.11.12~
JOHN SHEWAN WILL CHAIR FONTERRA SHAREHOLDER’S FUND’S TRADING AMONG FARMERS SHARE TRADING SCHEME 2012
Good investments news: Fonterra Shareholders’ Fund that will form part of the cooperative’s Trading Among Farmers share trading scheme is getting a new board together to launch on the NZX.
A prospectus for the fund due out towards the end of this month. The offer will provide one of the best returns on water generated agricultural product that New Zealand can offer. A very solid investment.
Jamie Gray has more. Former PriceWaterhouseCoopers chairman, John Shewan, (pictured) has signed on to be an independent director and will chair the board.
~Posted by Horiwoodblog, Aotearoablog, Aotearoa New Zealand, Polynesia Asia-Pacific. 17.10.12~
TOP BUSINESS STORY – NEW ZEALAND’S LIQUID ECONOMIES & REAL ESTATE – GOVERNANCE, CULTURE & THE ENVIRONMENT
Out of the hundreds of business related stories on this Hollywood entertainment news-fusion website, the top business story being read today is: LIQUID ENERGY ASSETS, DAIRY ASSETS, REAL ESTATE EXPORT SALES ECONOMIES – FONTERRA FARMERS, MINING & NEW ZEALAND.
It combines some of the best things we know as “the Kiwi life”. It also defines the current government’s focus as real estate acquirers and sellers to foreign buyers in their time in office. So coporate governance is the story fused with how the environment (natural and cultural) can withstand the pressures of the world wanting New Zealand’s most valuable resources. In truth though, New Zealand’s citizens are the best things of New Zealand we have. When they smile… we see our culture on display in the faces of Aotearoa. Hard to beat. Read the story.
~Posted by Horiwoodblog, Aotearoa New Zealand, Polynesia Asia-Pacific.n 15.7.12~
[Fonterra votes to be partially globally owned].
In the biggest news story so far this year in New Zealand, concerning farming real estate, the building block of the New Zealand economy, and the biggest cash cow in our history, (dairy farming) Nadine Chalmers Ross was assigned the night shift in over-time to cover the story.
Fonterra farm co-op, made up of 10,500 farmers were proposed a scheme where they could trade shares amongst each other, and also sell to foreign (or external investors) up to 20% of the co-op. Or, to give consent to a trading scheme – where the biggest land mass of useable productive farming land in NZ, went partially on the block as collatoral.
Under strictly private filming conditions, Chalmers Ross explains how a 75% result of voters being ‘in favor of’ would have been the result needed to ensure the co-op’s shareholders would create the stable and unified environment of shareholders, showing trust in Fonterra’s managements future development plans with the $500million plus money, raised from the vote and partial sale of the trading shares plan.
The reporting was worded this way: “Farmers continue to worry that letting outsiders invest in their co-operative will ultimately lead to a loss of control. Among comments from farmers voting against the scheme today were that it takes Fonterra too far away from tried and proven co-operative principles, it is not needed and that it has not been well enough tested.
They also say 50% is not enough and that 75% shareholder support should be required to see it pass. “Anything less than that will actually create a rift in the shareholder base,” said Allister McCahon, a Dargaville farmer.”
Well 2/3rds or just over 60% of farmers agreed. Well below the 75%, the spin doctors of Fonterra, claim it’s enough and they’re romping off with 20% of farmers capitol to invest in arable farming land in new territories abroad.
The benefits: Agricultural knowledge, the scinence of the technology and expertise can now be exported to feed far reaching markets with farming ventures on foreign land. This reduces freight expenses and allows for business networking to develop for the NZ co-op in foreign territories, if the scheme goes well. I hope it does.
The risks: Those dumb balance sheets at AGM’s (in a drastic scenario, such as witnessed in an AIG styled Wall Street banking tale) that declare, ‘oh we made a loss of $200 million over there and $100 million over there.’ Followed by ‘oops, we hope to make it up to you next year,’ so your farming co-op can remain 80% yours. They do happen.
How to reduce this: A more risk-managed culture of shadow managers (of NZ citizenship and preferably children of NZ farmers, Maori farmers children even, for a change!), working with the top execs in each global territory is now needed.
What it says: Both existing capital and projected profit earnings, were drawn down on in this business gamble of measured risk in light of food needs increasing in the world. It allows for 1 in 5, virtual ’Wall Street farmers’ to now own the co-op. They’re soon to be in the mix. Then it becomes a shark chomping game of shares now. Today, farming culture changed. This is perhaps, something that the farming industry is not au fait with, as collective community objectives have made the dairy industry pony up and work together to be the world’s no.1 dairy supplier. It introduces a new element, of comptetiveness now. Naive farmers need to choose who they trust more wisely from here on in. Now the external components of investors, can put pressure on the farmers in the future.
Management: The good - Ralph Norris (who is used to getting paid $20 million a year) is on the board. He’s doing white milk and black milk (dairy and oil portfoilio mix, this year). He sits in the middle of ‘liquid economies NZ’ where soil quality while furthering both dairy’s growth and export product, as well as energy development (that includes oil, mining energy products) must co-exist side-by-side in his two portfolios. Ralph is a good manager. The Co-Op should be able to expect a lot from him. Hopefully Norris and his buds will recoop the investment in strategic ways. (more…)
Wondering what to invest in? Here’s a good one.
Press Release – New Zealand: Vector is pleased to announce it has completed three significant natural gas sale contracts for a total volume of up to 5 PJ per annum.
Vector Chief Executive Simon Mackenzie said the contracts with three of New Zealand’s largest industrial gas users Fonterra, New Zealand Steel and Mighty River Power, were for terms of one to six years from mid 2012.
Vector has also entered into an agreement with Shell to purchase 5 PJs per annum of gas from 1 January 2015 until 31 December 2018. “These transactions are significant to Vector as they extend certainty of gas supply and sales volumes from now to 2018,” said Mr Mackenzie.
He said signing three new contracts with blue chip customers was a significant win in a very competitive market for Vector’s Bell Block gas distribution transmission pipeline network.
I wonder if Maggie Barry will think it’s kosher to invest her green into this investments booster? Yeah… Maggie so would! :)
~Posted by Horiwoodblog, Aotearoa New Zealand, Polynesia Asia-Pacific. 11.6.12~
True story: As a teenager in New Zealand, I grew up on a dairy farm. This was in the days, when ‘foreign aliens,’ didn’t want to own a share of farmers hard earned milk money, or their farms either. (Now they do!). Life was simple, the land was real and it looked after you if you took care of it. A farmers best friend was their dog.
Anyway, one of my chores while farming was to go thistle grubbing. Being part Scottish as a Maori-Kiwi, this was always conflicting as a thistle’s flower was a Scottish emblem of pride. Yet in New Zealand, thistles ruin productivity for grass pastureland that translates into more money for farmers and their families, and thus also for NZ’s economy. So, each year I was assigned thistle watch duties.
Thistle grubbing involves cutting a thistles roots beneath the soils surface. I was always a klutz. So one day, at 14, while using a sharp spade (sharpened with iron) to thistle grub, I accidently whacked the top of my thump clean off. Down-spading while kneeling in shock in the grass, I tried to locate the missing piece of thumb. I knew doctors could sew the piece of thumb back on, if I found it. Much to my horror, I watched as my dog (a farmer’s best friend) ate it. To this day, I have a square thumb. Although, I willed it to grow back, so far - I have a missing piece off my thumb. Needless to say, it’s still a square peculiar thumb.
[Photo - Scotch Thistle from Dog Before Wicket Blog]
~Posted by Horiwoodblog.Com, Aotearoa New Zealand, Polynesia Asia-Pacific. 2.6.12~
Fonterra’s Shareholders CEO peaced out today from his job representing the dairy farming owner-operators of farms and their 100% sole-owned collective shares. Prior to giving himself an honest holiday, the budget in NZ went down. Here’s what economic columnists are saying on the national paper’s night shift.
“Bill English‘s ‘Suck it up Budget’ plucks a little from most Kiwis’ pockets to help the Finance Minister reach his $197 million surplus by 2014/2015. He got it through because of heavy conditioning prior. But the major problem is that there is no clear economic growth agenda. Growth projections rely on the timing of the Canterbury rebuild. Much more could be done to encourage NZ firms to employ more young New Zealanders or, become exporters.”–Fran O’Sullivan.
“The government is relying on growth from the Christchurch rebuild and continued strong growth in China and Australia to get the economy and the government’s finances back on track. Little tax tweaks on boats, houses, maids and livestock added a bit there. What’s more likely is the Treasury’s downside scenario, given the slowdown evident in China and Europe in recent weeks. That means the government would have to keep borrowing for longer. But it doesn’t shift the economy to a new track.”–Bernard Hickey.
“It was a bit of a snooze session,” BNZ currency strategist Mike Jones said. “It was a no-surprises Budget for the currency.”
“If Ruth Richardson delivered the Mother of All Budgets, this is the housekeeper of all budgets. Drab. And not much sign of a growth agenda. The Government is shutting down the fiscal irrigation in the hope that enough rain will fall to keep the paddocks green and the economy growing. (more…)
How important is Indonesia to New Zealand trade talks in the future? Or what does New Zealand have to offer President Susilo‘s people, a nation of 250 million twitter obsessed people with a $1.2 trillion economy evolving in the next two years. By 2030, Indonesia will have the world’s sixth biggest economy.
Theo Spierings is in Indonesia as a part of New Zealand’s trade talks, here’s what he reckons:
“Indonesia is a worthy enough market to invest $20 million of New Zealand farmers money into a new blending and packaging plant.”
Mr Spierings said “Indonesia had not even been in the top 30 markets for Fonterra (the dairy giant company of NZ) since five or six years ago. Now it was tenth “and I think over a time frame of five years it can easily sit in the top five”.
A team of farming experts from New Zealand will investigate how Fonterra can access fresh milk from local producers.
“If we can have access to fresh milk which is quite a big proportion of the total milk consumption here we can and will address the daily dairy nutrition situation in the cities here.”
And part from the usual security concerns in Indonesia things are looking up for this Asian nation trading partner and an enhanced diet of quality protein produce. Currently, NZ beef imports have been curbed by a third of what they normally are so there’s a bit of work to be done here in Indonesia, to give the people better produce.
Fonterra would continue to use New Zealand ingredients and the new plant would carry out secondary processing of local products to help meet the needs of the Indonesian market, Spierings said.
Asia was leading the world in dairy growth and much of the increased demand was coming from Indonesia.
“Global dairy demand is set to increase by 100 billion litres over the next eight years and 60 per cent of this growth is expected to come from China, India and Indonesia.”
The new plant would help expand Fonterra’s brands Anlene, Anmum and Anchor Boneeto throughout Indonesia. It is expected to be operational within 18 months.
New Zealand has been selling dairy products to Indonesia since the 1970s. Indonesia is Fonterra’s 10th largest market. Spierings was a part of a three-day-trade-mission in Indonesia with NZ’s PM.
News source – NZH & Stuff.
~Posted by Horiwood.Com, Aotearoa New Zealand, Polynesia Asia-Pacific. 16.4.12~