OpenGate Finance

14/04/2026

Quarterly Client Update - January – March 26

Clear advice. Confident decisions.

The first quarter of 2026 has been about getting back to fundamentals: cashflow discipline, sensible capital use, and making sure funding structures genuinely match how businesses are operating today.
Across our client base, the themes have been consistent:
— Banks have been excellent to work with, more opportunity where preparation is strong, and better outcomes where decisions are made early.
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What we’ve been working on - Cashflow, clarity, and bank readiness

A large part of the quarter has been spent reviewing actuals versus budgets, updating partial cashflows, and stress testing forward positions for the remainder of the season.
These reviews are helping clients understand where pressure points sit, what’s driving them, and how banks are likely to view risk and opportunity heading into the new financial year.

For many, the real value has been identifying small structural changes — timing of repayments, use of credit balances, or resetting expectations with lenders —to enable our farming business to capture opportunities as they arise.

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Lending and rates – a more selective environment

There is strong appetite to lend, particularly for well run businesses, banks remain highly selective.
Pricing, margins, and risk ratings are being scrutinised closely, especially where recent financials show improved profit.

We’ve spent considerable time this quarter challenging assumptions, comparing margins across lenders, and negotiating outcomes that better reflect underlying business performance rather than headline risk flags.

The key message is preparation: clear numbers, realistic assumptions, and proactive engagement make a material difference to both pricing and flexibility.

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Dairy sector focus

Milk price conversations have featured heavily this quarter. Many clients are in a strong position at current payout levels, and discussions have increasingly turned to what happens next — how much debt to repay, how much to hold back for volatility, and how to think about pricing risk into the 2026/27 season.
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Technology and performance

Technology continues to be part of the profitability conversation. Events like the Dairy Tech Expo reinforced that on farm systems and data are increasingly feeding into financial conversations — from cost control through to lender confidence.

The focus remains on technology that supports decision making, not just technology for its own sake.
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Fonterra Delivers Strong Signals for the Season Ahead

Fonterra has released updated advance payment rates for the 2025/26 season, reinforcing positive momentum and strong cashflow support for dairy farmers.
The current outlook includes:
• Forecast Farmgate Milk Price: $9.70/kgMS
• Advance payments lifting through autumn, reaching $8.15/kgMS (May milk, paid in June)
• Final retro forecast: $9.60 – $9.70/kgMS
Overall, this is a solid result and provides greater certainty heading into winter. For many farms, it creates opportunities to strengthen cashflow planning, review overdraft positions, reduce debt, or consider investment.

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Planning beyond the next 12 months

Alongside day to day work, we’ve also been helping clients think further ahead — reviewing ownership structures, succession conversations, and medium term funding strategies.
These discussions are often prompted by current pressure, but they tend to deliver the greatest long term value when tackled early and calmly.
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Looking ahead

As we move into the next quarter, the focus remains on:
• Staying ahead of bank expectations
• Maintaining flexibility in funding structures
• Making informed decisions while conditions are still supportive
If you’d like to sanity check your position, talk through upcoming funding decisions, or simply sense check what your bank might be thinking, we’re always happy to have the conversation.
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Nick Bettington
027 836 4198
[email protected]
https://opengatefinance.co.nz
OpenGate Finance
Capital made easy. Best rates. Stress free ag finance.

22/03/2026

🐄 Fonterra – Strong Result 🥛

Fonterra has released its updated advance payment rates for the 2025/26 season, showing continued strength in cashflow support for dairy farmers.

✅ Forecast Farmgate Milk Price: $9.70/kgMS
✅ Advance rates now lifting through autumn, reaching $8.15/kgMS (May paid June)
✅ Final retro forecast: $9.60 – $9.70/kgMS

This is a solid outcome for the season and provides greater certainty heading into winter, with meaningful implications for cashflow planning, debt reduction, and reinvestment decisions.

If you’d like to talk through what this means for your farm budget, overdraft position, or forward planning, we’re happy to help.

📞 Get in touch to run the numbers for your business.

16/03/2026

✅ Dairy Farmers Back DairyNZ in Levy Vote

Dairy farmers have voted to continue the milksolids levy that funds DairyNZ, with 66% of participating levy payers voting in favour.

The result sends a strong signal of support for the work DairyNZ delivers on behalf of NZ dairy farmers. As Chair Tracy Brown says, farmers have been clear about where they want DairyNZ focused — using dairy science to lift productivity, strengthen farm systems, and help farmers compete on sustainability.

📊 Key points from the vote:

-47% of eligible voters took part
-The 66% who voted “yes” represent 72% of total milksolids produced by voters
-DairyNZ now has a clear mandate to continue its work programme.

DairyNZ will now lodge the formal levy application for ministerial approval, which is expected to be completed before the General Election on 7 November.

A clear mandate from farmers — and a strong vote of confidence in DairyNZ’s direction.

🐄🌱📈

Send a message to learn more

10/03/2026

💰 Fonterra Mainland Payday Confirmed – 14 April 2026

Big news for Fonterra shareholders and unit holders 👇

Fonterra has confirmed that proceeds from the sale of Mainland Group to Lactalis will be paid out on 14 April 2026, following completion of the transaction at the end of March.

✅ All regulatory approvals are now in place
✅ The transaction is unconditional
✅ Mainland Group has fully separated from Fonterra

The record date is 9 April, determining who will receive the capital return.

Earlier this year, shareholders approved a $2 per share capital return as part of the $4.22 billion sale, allowing Fonterra to sharpen its focus on advanced dairy ingredients and B2B markets.

A significant milestone — and a major payout date to mark in the calendar.

Send a message to learn more

18/02/2026

✅ Capital Return Approved

Shareholders have approved the resolution put forward at this morning’s Special Meeting regarding the capital return linked to the sale of Mainland Group.

An overwhelming 98.85% of votes cast were in support.

With this approval, Fonterra can now seek final Court approval to proceed with a $2.00 per share capital return to shareholders and unit holders, subject to the completion of the divestment of the global consumer and associated businesses to Lactalis.

We’ll keep you updated as the next steps progress.

Send a message to learn more

17/02/2026

Nick went along to the Taranaki Dairy Tech Expo on Thursday, 5 February 2026, at the Stratford A&P Showgrounds.

Good to see some granular data on Halter (Return on Investment for Ten New Zealand Halter Farms). Pretty positive overall.
Contact McEldowney from AgFirst to get a copy. If you don't want to read the 40 pages here is a summary below!

New report shows strong gains from Halter virtual fencing on NZ dairy farms 🐄📈

A recent report evaluating Halter technology across 10 New Zealand dairy farms found an average 13.2% increase in farm profit, alongside meaningful gains in productivity, labour efficiency, and environmental performance.

Farmers using Halter saw:
✅ Better pasture utilisation
✅ Higher milk production per cow and per hectare
✅ Improved reproductive performance
✅ Reduced labour pressure and better staff engagement
✅ Environmental benefits, including lower nitrogen use

The biggest gains came where Halter was fully integrated into day‑to‑day farm management, not just used as a fencing replacement.

🔑 Key lessons learnt from the report

• More frequent grazing breaks improved intake, residuals, and pasture use
• Smarter herd grouping (by age, condition or rumination data) reduced competition and lifted performance
• Better calving and winter crop management improved cow health and feed utilisation
• Less time spent fencing and shifting cows allowed staff to focus on higher‑value work
• Real‑time data supported better decisions around grazing, feeding, reproduction and animal health

📊 Stand‑out results

• +13.2% average increase in farm profit (EBIT)
• +8.9% pasture eaten per hectare
• +9.5% milk solids per hectare
• +4.7% lift in 6‑week in‑calf rates
• Lower labour costs and improved staff satisfaction

⚠️ Things to consider

The report notes that: • The first year is often an adjustment period
• Results depend on management changes, not just the technology
• Seasonal and environmental conditions still matter

✅ Bottom line

Halter is a strong investment opportunity for farms ready to adapt their management approach. When used well, it can deliver real gains in productivity, profitability, labour efficiency and sustainability.

Send a message to learn more

18/12/2025

📉 Fonterra Cuts Milk Price Forecast to $9.00/kg Midpoint

Fonterra has lowered its 2026 farmgate milk price forecast midpoint from $9.50/kg to $9.00/kg, with the new range now $8.50–$9.50/kg (previously $9.00–$10.00/kg).

CEO Miles Hurrell cites strong global milk production and a rising NZ dollar as key factors:

“We continue to experience strong milk flows globally, particularly from the US and Europe, which is putting downward pressure on commodity prices.”

15/12/2025

🎄Merry Christmas & Thank You! 🎄

As 2025 comes to an end, we just want to say a HUGE thank you to all our amazing clients for your trust and support this year. 💚

At OpenGate Finance, we love helping rural businesses and families reach their goals—and we couldn’t do it without you! Every conversation, every plan, every milestone reminds us why we do what we do.

Wishing you and your loved ones a great holiday season filled with happiness, and plenty of good times.

Here’s to an exciting and successful 2026 together!

OpenGate will be down to skeleton staff for the Christmas, holiday period - 22nd December 2025 to 9th January 2026.
Nick will be available on 027 836 4198 during this period.

✨ From all of us at OpenGate Finance – Merry Christmas & Happy New Year!
👉 https://opengatefinance.co.nz

11/12/2025

Did you notice on the Q1 business update for Fonterra that the Overseas Investment Office (OIO) had approved the Lactalis sale!? There are still some regulatory approvals pending and a shareholder vote on the capital return in Feb-26. However, Fonterra continues to expect the transaction to complete in the 1st half of next year.

Send a message to learn more

26/11/2025

📉OCR Announcement – 26 November 2025 📉

The Reserve Bank of New Zealand has cut the Official Cash Rate today!

OCR reduced to 2.25% (from 2.5%) to support recovery and confidence.

Future OCR moves depend on inflation and economic outlook.

📢 Economic Update – What You Need to Know:

✅ Annual inflation is at the top of the target band but expected to moderate.

✅ Household inflation expectations have fallen but remain high compared to recent history. Professional forecasters and business leaders expect inflation to stay slightly above the 2% midpoint.

Key Drivers:
- High milk prices & poor weather → lower meat production.
- Limited energy access → higher manufacturing costs.
- Weak economic activity → spare capacity, rising unemployment, easier hiring.

Rural Economy:
- High commodity prices have boosted incomes, but farmers are prioritizing debt reduction over new investment.

Housing Market:
- House prices remain stable despite lower mortgage rates.
- Growth expected to be moderate, in line with income growth.

Global Outlook:
- Global growth resilient but expected to slow in 2026 as AI investment cools.
- Trade barriers will weigh on global activity, modestly reducing inflation pressures in NZ.

Risks:
- Inflation could rise if businesses restore profit margins faster than expected.
- Recovery speed uncertain—could be slower if households remain cautious, or faster if housing and spending pick up.

Send a message to learn more

24/11/2025

Media Release

📢 Fonterra Update: 2025/26 Season Farmgate Milk Price
Fonterra Co-operative Group Ltd has announced updates for the 2025/26 season:

✅ Forecast Farmgate Milk Price
Range narrowed to $9.00–$10.00 per kgMS
Midpoint adjusted to $9.50 per kgMS (previously $10.00)

Why the change?
CEO Miles Hurrell explains that strong milk flows in NZ and globally have increased supply, putting downward pressure on global commodity prices. There have been seven consecutive price drops in recent Global Dairy Trade events.

Despite this, the new midpoint of $9.50 per kgMS remains a strong forecast for the season. Fonterra continues to focus on maximising returns for farmer shareholders through:

- Building strong customer relationships
- Using price risk management tools
- Optimising product mix

Forecast Farmgate Milk Price: $9.50 per kgMS