Despite the impacts of Covid-19 on many businesses, Fonterra's chief executive Miles Hurrell says the business is on track to contribute more than $11 billion to the New Zealand economy this year.
Although the country has lost its largest foreign exchange earner through tourism, the farming sector is still working to get its products to markets throughout the world.
Fonterra produces products in 140 countries, including in New Zealand, Asia, Americas, Middle East, Europe and Africa. Its products include milk, cheese and milk powder.
Fonterra has more than 20,000 employees worldwide, with more than half in New Zealand. It also has about 10,000 farming families in New Zealand as shareholders.
In a statement, Fonterra earlier told 1 NEWS its teams around the world were in different stages of experiencing the impacts of Covid-19.
"Our response to Covid-19 is being managed through incident response processes. We have actioned our business continuity plans for our sites, offices and facilities, both in New Zealand and globally.
"We have strict precautions in place to ensure our employees, their families and communities are kept safe during this time."
Fonterra's services have been classified as essential by the Government though, meaning farmers milk is still being collected and processed.
Mr Hurrell told TVNZ1's Breakfast this morning that the business has had to adapt to changing markets amid the pandemic.
"You have the ability to flex based on the market demand," he said of how the business had shifted its market in terms of products in demand and where.
"What Covid's done is it meant we've had a tactical support team here in Auckland in Fanshawe Street and that's enabling us to come in every day and make tactical decisions to do the right thing for our farmers.
"We're watching into the future for next season, but as I sit here today, very confident of that $11 billion going back into the New Zealand economy."
Mr Hurrell said at this point the business was doing "pretty well", with debt down.
Before Covid-19, in the latest half year results for financial year 2020, Fonterra reported that its total earnings before interest and taxes was up $494 million to $806 million.
"At this stage, we have not experienced significant interruption in our end-to-end supply chain. At our interim results announcement in March, we gave detail on the impact Covid-19 is having on our business," Fonterra earlier said in a statement.
Looking forward, Fonterra said it was maintaining both their forecast Farmgate Milk Price range for this season and underlying forecast earnings guidance for the financial year.
"There are clearly some clouds on the horizon as we can’t predict the mid-long term global impacts from Covid-19.
"However, our recent half year financial results show our business is in a good position to face into the economic uncertainty that exists both globally and in New Zealand."
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