Fonterra announces freight partnership

Fonterra is shaping the future of the cooperative with the launch of Kotahi, a partnership with Silver Fern Farms that aims to bring New Zealand's exporters and importers together to increase the performance of the country's supply chain.

Kotahi will match supply and demand for freight services on land and sea to get products to distant markets around the world more efficiently.

Fonterra Shareholders' Council chair, Simon Couper said the Kotahi freight partnership should lead to efficiencies in international container freighting, help to further reduce carbon emissions and provide increased competition for the import and export markets.

"The long term outcome will be increased services and efficiency, an opportunity to sell the expertise and route to market to other companies, as well as the security of the supply chain in a rapidly changing world. The opportunity to bring bigger ships to New Zealand should also assist in driving down the landed costs of inputs required for farmers," he said.

Fonterra has also announced the buyback of rural supplies retailer RD1.

"Now that RD1 is 100% owned by shareholders, we will be able to focus on providing great service and supplies to our farmers at competitive rates and giving them the best deals available," said Couper.