Senior Analyst and Analyst

Senior Analyst and Analyst TDB Advisory is currently hiring for two positions for our Wellington office. Applications for both positions close on Friday December 9, with the start date being early 2023. Do you want to work in a dynamic and stimulating team environment in a boutique advisory [...]

Livestock Export Ban – the Wellbeing Impacts

Livestock Export Ban – the Wellbeing Impacts In 2021/22, around 150,000 livestock were exported by sea, with a total value of $382m. All livestock exports by sea were cattle to China, largely for new dairy farms. Under the Animal Welfare Amendment Bill, this trade will cease. The Bill [...]

Financial harm to kiwifruit growers

Financial harm to kiwifruit growers In a report for Zespri, TDB estimated the financial impact that the Environmental Protection Authority’s proposal to end the use of Hydrogen Cyanamide would have on individual New Zealand kiwifruit growers. Our analysis uses orchard production information (e.g., hectares of different fruit [...]

Fonterra’s Capital Restructuring

Fonterra's Capital Restructuring When Fonterra was formed under its own special legislation, the government sought to level the playing field for competitors and expose Fonterra to pressures to perform. Constraints were placed on the mega co-op, many of which have since been removed or relaxed. Fonterra is [...]

Dairy sector – extending the boundaries

Dairy Sector - Extending the Boundaries As part of its frontier firms inquiry, the Productivity Commission asked TDB to investigate a pillar of the New Zealand economy – the dairy sector. Our paper looks at the economic significance of the industry, the regulatory environment, the extent of competition and the [...]

a2: White gold

a2: White gold The market value of Fonterra’s equity is $10.6 billion.  Fonterra’s NPAT in FY17 was $745 million.  That gives the company a P/E multiple of 14. The market value of The a2 Milk Company’s equity is now $6.1 billion – almost 60% of Fonterra’s. a2 [...]

Small dairy players on the rise

Smaller dairy players on the rise Which dairy companies are performing the best? The second edition of the TDB Dairy Companies Review points to strong performance from a number of Fonterra’s smaller rival firms with Fonterra losing market share as a consequence – now down to 82% [...]

Fonterra: a long-run financial assessment

Fonterra: a long-run financial assessment As part of its current review of the Dairy Industry Restructuring Act (DIRA) the government asked whether the intended benefits of the 2001 industry restructure have been realised. While parts of the industry have flourished (eg, A2 Milk, Synlait and Open Country [...]

New Zealand Dairy Companies Review

New Zealand Dairy Companies Review In TDB's Dairy Companies Review for the 2018 financial year, we looked closely at Fonterra’s performance in comparison with other NZ dairy processing companies. The transparency of Fonterra’s different businesses has improved, allowing us to analyse the performance of the company’s ingredients [...]

Fonterra – What’s going on?

Fonterra - What's going on? With a reported loss of more than $590 million and no dividends for shareholders this coming year, how did Fonterra get this far down? Is the cooperative a victim of its own size, past success, structure or strategy? In a recent interview [...]