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Dairy exporter Fonterra to invest $2.7 bln to grow and cut emissions

Fonterra Co-Operative Group Ltd , the world’s biggest dairy exporter, said on Monday it would invest about NZ$4 billion ($2.72 billion) by 2030 to move milk into higher value products, pursue growth, and reduce emissions.

The New Zealand-based firm expects to return NZ$1 billion to investors over the next decade on the back of asset sales and an expected uptick in earnings, its chairman and chief executive said at an annual meeting.

Fonterra, which owns the Anchor, De Winkel and Mammoth brands, also aims to achieve net zero carbon status by 2050.

The roadmap comes on the heels of the company getting approval from its 10,000 farmer shareholders to implement a new capital structure last week.

The dairy firm has seen strong demand for its products amid constrained global supply and expects demand to remain elevated in the short to medium term. It is also considering an initial public offer of its Australian business, which could return about $700 million to shareholders by 2024.

Fonterra said it expects to steadily increase dividends to around 40 New Zealand cents a share by 2030. It paid 15 New Zealand cents last year.

($1 = 1.4706 New Zealand dollars)

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