Dairy

Fonterra dairy farm open day part of co-operative’s charm offensive

[11 December/ Stuff] Fonterra has launched their ‘Opening Our Farm Gates’ campaign in an attempt to change the perception urban New Zealanders have of dairying and water quality. Part of the campaign involved opening two Manawatu dairy farms to the public over the weekend, with around 240 people visiting. Dairy Industry Chairman, Chris Lewis said...

Proposed Otorohanga dairy plant meets local resistance

[8 December/ Radio NZ] Otorohanga District Council have stated that they were against resource consent being granted for a $230 million dairy factory, with locals worried it would threaten wildlife as there was a wetland adjacent to the factory site. Happy Valley Milk applied for consent in November 2016 and went through public consultation, with...

Fonterra seeks 3b litres more NZ milk 2025

[8 December/ National Business Review] Fonterra said it would need an extra 3 billion liters of New Zealand milk production to reach its 2025 growth targets. The company collected 19 billion liters of liquid milk equivalent in 2017, but wanted to boost that to 22.5 billion liters by 2025. Fonterra said this could be done...

Fonterra cuts its milk price forecast

[7 December/ Stuff] Fonterra has decreased its forecast payout for the 2017-18 season by 35 cents to $6.40 per kilogram of milk solids. Based on DairyNZ production figures of 1.85 billion kilograms of milk over the season, the 35 cent decrease equated to lost income of $647 million for farmers. For the average farmer milking...

Dairy prices rise

[6 December/ Otago Daily Times] The Global Dairy Trade price index increased by 0.4 percent to USD 3,091 at the most recent auction. The price of whole milk powder, which had a major influence on the price New Zealand farmers received, increased by 1.7 percent to USD 2,830 per tonne. AgriHQ Dairy Analyst, Amy Castleton...

Fonterra maintains its S&P ratings following $183m damages decision

[4 December/ Stuff] Fonterra has maintained its S&P Global Rating despite being ordered to pay $183 million in compensation to Danone for losses suffered after products had to be recalled following a botulism scare in 2013. S&P said Fonterra had enough liquidity to cover the payment and it believed the company had appropriately addressed its...

Government announces this year’s Partnerships Scheme Investment Round recipients

[30 November/ NZ Herald] DairyNZ has secured $8.4 million in funding from the Government over the next seven years to develop genetically low nitrogen excreting animals and farm management strategies to reduce greenhouse gases. DairyNZ Strategy and Investment Leader for Productivity, Bruce Thorrold said the funding would enable the dairy industry to lower its environmental...

Synlait Milk founder John Penno to step down after 12 years at the helm

[29 November/ Stuff] Synlait Founder and Chief Executive Officer, John Penno has announced he will be stepping down from the position within the next 12 months. Mr Penno would continue in a governance role as a director of the board. Synlait Chairman, Graeme Milne said Mr Penno had been an exceptional leader and had left...

Farmer’s mobile milking shed breaks the dairy model

[27 November/ Stuff] Happy Cow Milk Company Owner, Glen Herud does not own land and does not have a permanent milking shed or effluent system. Instead, Mr Herud milked his 60 cow herd once a day from a mobile milking unit parked in leased land. Rather than make his cows walk from the paddock to...

Jim van der Poel elected as new DairyNZ chairman following death of Michael Spaans

[23 November/ Stuff] Waikato Dairy Farmer, Jim van der Poel has been elected the new chairman of Dairy NZ. Mr Poel was a director of Fonterra and New Zealand Co-operative Dairies. Mr Poel would replace Michael Spaans, who died earlier this week after a long illness. Mr Poel said Mr Spaans was a skilled, dedicated...

Efficiency ups processing at Westland Milk

[24 November/ NZ Herald] Westland Milk Products said improved plant efficiencies contributed to an increased in processed milk through the Hokitika dairy factory. Peak milk for the new season reached 3,564,935 litres on 2 November 2017. Improved maintenance processes, plant reliability, and ensuring the right people were in the right place at the right time...

Dairy cows’ record production

[28 November/ Otago Daily Times] The latest New Zealand Dairy Statistics showed that the milk produced by an average cow increased from 4,185 litres in the 12 months to June 2016 to a record 4,259 litres in the 12 months to June 2017. Dairy NZ Senior Economist, Matthew Newman said the trend for increasing milk...

Analysts expect Fonterra to lower its forecast payout before Christmas

[23 November/ Stuff] Federated Farmers remained optimistic that Fonterra’s forecast price of $6.75 per kilogram of milk solids would be maintained in December, unlike most other analysts who believed it would decrease to around $6.50 per kilogram. If the price did decrease to this level, it would mean a reduction of almost $500 million for...

Farmers nervous as milk prices slide

[22 November/ Radio NZ] The latest decrease in global milk prices has made dairy farmers dissatisfied and anxious. Whole milk powder was at its lowest level since October 2016 after a 2.7 percent decrease at the Global dairy trade auction to USD2778 per tonne. Whole milk powder prices determine farmer pay-out, and most needed USD3000...

Fonterra launches charm offensive on water quality

[20 November/New Zealand Herald] Fonterra has launched a television campaign to showcase how farmers have upped their game in efforts to improve water quality. The move comes after water quality emerged as a key issue during September’s general election. Miles Hurrell, Chief Operating Officer of Fonterra Farm Source, said that there was a greater focus...

DairyNZ, Fonterra pay tribute after death of Michael Spaans

[21 November/New Zealand Herald] DairyNZ and Fonterra have paid tribute to recent DairyNZ Chairman and Fonterra Director Michael Spaans, 54, who has passed away. Mr Spaans, a Te Aroha farmer, had a successful career in the industry. He served on the DairyNZ board from 2008 before being elected as Chairman in 2015. He also served...

A2 Milk revenue, profit pushes higher in first four months FY18

[21 November/National Business Review] A2 Milk says both revenue and net profit jumped in the first four months of the current financial year due to strong demand for its infant formula. Revenue increased 69 percent to $262.2 million in the four months ended October 30 from the comparative period a year ago. Net profit more...

Synlait’s $55m Auckland plant doubles canning capacity

[20 November/Stuff] Synlait has a new $55 million blending and packaging plant up and running in Auckland. The new plant put Synlait in a good position to sell increased amounts of infant formula and other products to China. Chief Executive John Penno said the plant gave Canterbury-based Synlait a total canning capacity of 64,000 tonnes....

Farmers watching Beingmate, China Farms performance

[14 November/Rural News] Fonterra farmers are closely following the co-op’s investment into Chinese food company Beingmate, which they see as shaky. Fonterra Shareholders Council Chairman Duncan Coull said that although the performance and return on the initial investment had been poor with stock market issues and regulatory reform, there was significant value yet to be...

$78m savings reflect co-op’s new culture

[14 November/Dairy News] Westland Milk is set to hit a savings target of $78 million says Chief Executive Toni Brendish in the co-op’s latest annual report. The savings are equivalent to $1.20/kgMS for the co-op and its 350 farmer shareholders. Westland Milk has been through a troubled past few years, posting a break-even profit of...

NZX top performer A2 Milk cites ‘pleasing’ start of 2018 FY

[13 November/New Zealand Herald] A2 Milk was the best performing stock on the benchmark S&P/NZX 50 Index this year after its annual profit tripled. The company outlined positive developments in its Australia and New Zealand, China and other Asia, US and UK markets. A2’s shares increased 3.1 percent to $7.64 and increased 248 percent this...

LIC chairman Murray King: ‘Standing still not an option’

[14 November/New Zealand Herald] At the LIC Annual Meeting, LIC Board Chairman Murray King said New Zealand dairy farmers must work to keep their global edge against future disruption. Mr King said the country’s dairy industry is vulnerable to the same technological and innovation disruption that other industries have experienced. Mr King also noted clear...

Oceania plant gets a big boost

[13 November/Farmers Weekly] Investment at the Oceania Dairy processing plant will likely receive a further $200 million, with the potential to triple Oceania Dairy’s milk intake. Oceania Dairy, owned by China’s Inner Mongolia Yili Industrial Group, was commissioning the second development phase, integrating a canning and blending operation for infant formula and two UHT manufacturing...

Westland Milk warned over wastewater

[10 November/New Zealand Herald] Westland milk has acknowledged whitebaiters concerns about wastewater discharge into the Hokitika River. In a statement yesterday, they accepted that their dairy residue was likely responsible for disrupting whitebait fishing nets. The West Coast Regional Council has issued the company with a formal warning. Chief Executive Toni Brendish said that the...