Dairy

Fonterra Brands opts for outsider

[14 September/Dairy News] Fonterra has appointed an Executive from outside of its business as the new head of its NZ Brands division. Managing Director of Griffin’s Food Company, Brett Henshaw, has been appointed as Managing Director of Fonterra Brands. He will start the new role in December, replacing Leon Clement, who resigned to become the...

Fonterra debt under spotlight after $196m loss

[13 September/NZ Herald] S&P Global Ratings will keep a watching brief on Fonterra’s debt after it produced its first annual loss since it was established in 2001. The co-operative reported a $196 million loss for the year to July. This compared to a $745 million profit in the previous year. The gearing ratio increased by...

Fonterra names board candidates up for election

[10 September/Radio NZ] Fonterra announced the three candidates up for election to the company board after gaining approval from an Independent Selection Panel. One candidate is Jamie Tuuta. He was the chairman of Maori Television, and has held governance roles in other organisations. A second candidate is Peter McBride, who is currently the chairman of...

Dairy prices drop further

[5 September/ Farmers Weekly] Dairy commodity prices fell at the Global Dairy Trade auction, with the index falling 0.7 percent. Butter experienced the largest fall at 2.8 percent. The NZX Dairy Derivatives market had expected a 1 percent increase in unsalted butter, however it fell 2.4 percent. Whole milk powder fell 2.2 percent. There was...

Westland Milk lowers predicted payout range

[6 September/The Country] Westland Milk Products has lowered its predicted payout range five cents following a recent board meeting. Shareholders were advised the bottom line dropped to $6.05 per kilogram of milk solids. The final payout for 2017-18 was expected to be announced on September 25. Westland Milk expected a payout range between $6.75 and...

Fonterra set to lower 2018/19 milk price forecast

[30 August/NZ Herald] Fonterra is expected to lower its forecast $7.00 per kg milk price. It legally had to upgrade its price every three months. ASB Senior Rural Economist, Nathan Penny, said based on results since they opened at $7.00 per kg, a downgrade was almost inevitable. He added the market consensus was around $6.40...

Fed Farmers calls for supermarket milk boycott

[27 August/Rural Life] Federated Farmers wants New Zealander’s to stop buying milk from supermarkets, and buy it from dairies instead. This was a result of University of Auckland Marketing Professor, Bodo Lang, finding milk pricing in New Zealand was very high. Federated Farmers Dairy Chairman, Chris Lewis, said he avoided the supermarket when buying milk...

A2 Milk Co continues to grow

[22 August/Farmers Weekly] Infant formula sales in Australia and China are driving The A2 Milk Company’s (‘A2 Milk’) growth momentum. A2 Milk reported a 68 percent increase in revenue. Sales of A2 Platinum formula still dominated the business. According to Managing Director, Jayne Hrdlicka, the company continues to gain market share in both Australia and...

Dairy prices fall to eight-month low

[22 August/Radio NZ] Dairy prices fell to an eight month low at the most recent Global Dairy Trade Auction. The average price fell 3.6 percent to USD3044 per tonne. This was the lowest the average had been since December. The price of whole milk powder fell 2.1 percent and volumes sold were down 6 percent....

Westland shareholders to get update on strategic review

[20 August/The Country] Westland Milk Products is expecting to give shareholders an update on a strategic review before Christmas. Board Chairman, Pete Morrison, said it had begun implementing a new strategy that was focused on more segregated, higher value added products. The scope of the review includes Westland’s future ownership structure with options on the...

China-controlled Mataura Valley Milk starts production

[20 August/NZ Herald] Mataura Valley Milk’s production is under way as the first milk was delivered to its Gore plant. The company’s Founding Director, Ian Tulloch, said he was satisfied to see the plant open after eight years of work. He added it was already having a big impact on the district. The company’s major...

Fonterra ownership structure ‘not on the table’, says director Scott St John

[18 August/The Country] When speaking to the NZ Shareholders Association, Fonterra Director, Scott St John, said the co-operative wouldn’t be changing its ownership structure, but was interested in taking on partners to fund future projects. The co-op’s capital structure has been criticised as making it too hard to raise equity, and led to a poor...

Fonterra appoints 18-year veteran Miles Hurrell as interim CEO

[15 August/The Country] Fonterra has appointed Miles Hurrell as its interim CEO and has currently halted its global chief executive search. Mr Hurrell was the chief operating officer for Fonterra’s FarmSource unit and is replacing Theo Spierings who will leave the co-op next month. FarmSource is the division that works directly with the farmer-owners. Mr...

Fonterra reaches settlement with muzzled ex-director Leonie Guiney

[13 August/Stuff] The Fonterra board and former director, Leonie Guiney, have reached a settlement in their legal proceedings. The board said it had agreed to settle the proceedings and Fonterra agreed to meet her costs. In March, an injunction against Ms Guiney talking to media was ordered. The judge said at the time that there...

Fonterra taps into psychology of shoppers in attempt to boost sales

[10 August/Stuff] A research division at Fonterra is developing tools to push customers into buying its products. It said the division would tap into the minds of consumers in a way that would shape the future of commerce. It used psychology and neuroscience to increase sales and improve marketing strategies. Fonterra Sales and Marketing Disruption...

High debt, low margins force Fonterra to cut back milk price, dividend

[10 August/NZ Herald] High debt and lower margins has forced Fonterra to reduce its farmgate milk price for the season just ended. It has also halted plans for a second half dividend. Fonterra said it would cut its 2017-18 milk price forecast by 5c to $6.70 per kg. This provides an $80 million benefit to...

Fonterra returns to India to form joint venture with Future Group

[9 August/NZ Herald] Fonterra is returning to the Indian dairy market to form a joint venture with Future Group. It said it had tied up with the Future Consumer, part of Future Group, to make a range of consumer and foodservice dairy products that would meet the growing demand for high quality dairy in India....

Dairy product prices steady

[8 August/Farmers Weekly] The most recent GlobalDairyTrade auction saw the price index remain unchanged in percentage terms on the last auction.  The key whole milk powder rose 0.1% to USD2,958, while a rennet casein offset a drop in butter milk powder.  The average price was USD3,136 per tonne compared to USD3,222 per tonne at the...

A2 Milk’s new boss Jayne Hrdlicka unfazed by the rising tide of competition

[4 August/NZ Herald] The a2 Milk Company’s (‘A2 Milk’) new Chief Executive, Jayne Hrdlicka, is relaxed about competition entering the A2 milk market. She said more competition could only grow the segment. A2 Milk accounts for around 10 percent of the fresh milk market in Australia and is being successful in the lucrative Chinese infant...

A2 Milk increases stake in Synlait Milk

[3 August/Radio NZ] The a2 Milk Company will buy an additional 8 percent share in Synlait Milk from Mitsui for $161.6 million. This will increase its share of Synlait to 17.4 percent in total. Synlait produces infant formula for A2 Milk, which was in demand in Australia and China. It had also helped drive the...

Ebert receivership hits Synlait dairy factory project at Pokeno

[2 August/Stuff] Ebert Construction, who were hired to build Synlait’s new dairy processing factory at Pokeno, are determined to see it completed despite going into receivership. Ebert were hired as subcontractors to the project by Tetra Pak. Receivers said the company owes creditors tens of millions of dollars, largely due to poorly performing projects in...

Fonterra, a2 Milk bury the hatchet

[3 August/NZ Herald] Fonterra and The A2 Milk Company have joined together to offer a jointly branded A1-free milk to New Zealand consumers. Fonterra had resisted the a2 Milk concept until now. The two companies have moved on from historic differences and formed a joint venture. They launched their first jointly branded product this week....

Fonterra chair John Wilson’s exit comes as shock to shareholder boss

[27 July/NZ Herald] Fonterra Chairman, John Wilson, has decided to step down after a serious health scare. This was a shock to the industry. Fonterra announced he would remain a director on its board until its annual meeting in November although would stand down from the chair immediately. The co-op said Mr Wilson had undergone...

Zespri chairman Peter McBride ponders Fonterra board contest

[22 July/The Country] Zespri Chairman, Peter McBride, could be in the running in this year’s Fonterra elections. He has been urged by Fonterra shareholders to stand for the board of the company. There was no knowledge whether current Chairman, John Wilson, would seek a fifth term. If he seeks re-election, his name would not be...