Fonterra profits increase by 18 percent

Federated Farmers dairy chairperson Willy Lefereink says Fonterra could become the first New Zealand company to smash the $20 billion revenue barrier.

The company's half yearly results show an after tax profit of $346 million - an 18 percent increase on the previous six months.

Mr Lefereink says that would have significance on a global scale too.

"It becomes one of the biggest players in the dairy industry in the world. There are some other food industries that are a little bigger like Nestle, but certainly in the dairy ingredients world they're number one."

Mr Lefereink says it means great spin-offs for New Zealand's wider economy, benefiting both large and small centres.

"All the dollars that come in from Fonterra through the farmers pockets will be spent, most of it, in New Zealand, so the rural town and even the bigger towns in New Zealand will benefit from Fonterra's success."

Mr Lefereink says it makes Fonterra one of the biggest dairy players in the world.

Image: NZ Herald