Dairy

A2 Milk shares down after announcement

[17 May/Rural Life] The A2 Milk Company’s shares fell 20 percent despite the announcement of a 70 percent increase in revenue for its nine months to March. Forsyth Barr Broker, Damian Foster, said the decline was due to some profit-taking. A2 Milk Chief Executive, Geoffrey Babidge, said the performance reflected sales growth in both nutritional...

Dairy prices reach highest level in months at auction

[16 May/Radio NZ] Dairy prices rose to their highest level in eight months at the latest Global Dairy Trade auction. Average dairy prices were up 1.9 percent to $5,301 per tonne. There was a 1 percent fall in the auction two weeks ago. The whole milk powder price was marginally higher than it previously was....

Govt to unfetter cheese-making regulations

[14 May/Radio NZ] Artisan cheese makers welcomed a new government plan to relax unnecessary red tape. Some cheesemakers complained it cost more to meet Ministry for Primary Industries compliance than their entire tax bill. Food Safety Minister, Damien O’Connor, launched a new template to help producers meet food safety requirements. Mr O’Connor said cheese producers...

NZ farmers eye third straight year of strong dairy prices

[14 May/NZ Herald] Economists said New Zealand dairy prices were set to be $6 plus for the third year in a row. Fonterra was expected to issue its opening forecast for the coming 2018/19 season later this month. While rural lending specialist, Rabobank, said the season would ultimately deliver a $6.40 per kgMS, ANZ Rural...

Rabobank forecasts $6.40 per kgMS milk price for new season

[10 May/Dairy News] Rabobank predicts a shaky start, but a strong finish to the 2018-19 milk season starting 1 June. Rabobank said New Zealand dairy farmers had enjoyed a period of profitability, and the upcoming season would see this continue. They forecast a farmgate milk price of $6.40 per kgMS. Dairy analyst, Emma Higgins, said...

Fonterra wants law change to end milk pick-up obligation

[9 May/NZ Herald] Fonterra has said that it continuing to have to accept all milk from all farms would be a critical part of the Government’s review of legislation. Agriculture Minister, Damien O’Connor, has announced the terms of reference for the review. Fonterra had long pushed back against the DIRA requirement that it take all...

Beingmate joint venture needs new leader

[8 May/Dairy News] Fonterra’s Beingmate joint venture needed a leadership revamp, according to its China business head, Christina Zhu. She added that Beingmate needed a strong leadership team and chief executive, and that it was in the process of ensuring that was in place. Beingmate reported a loss of $230 million for 2017 which was...

Global dairy prices drop 1.1 percent

[2 May/Radio NZ] Dairy prices fell in the largest GlobalDairyTrade auction. The average price decreased 1.1 percent. The price of whole milk powder was down 1.5 percent, however there were gains in the price of skim milk powder and cheese. Rabobank Dairy Analyst, Emma Higgins said the drop was not overly concerning. She added that...

Lactose intolerant Aucklanders sought for a2 milk study that may help them tolerate dairy

[30 April/NZ Herald] Lactose intolerant Aucklanders are being sought for a study by The Liggins Institute and AgResearch that they hope will assist intolerant people to tolerate dairy. The study follows a trial last year that found one glass of a2 Milk prevented some symptoms of lactose intolerance. They are looking for twenty males and...

Alibaba, Fonterra and NZ Post team up to track orders using blockchain technology

[27 April/The Country] Alibaba is working with Fonterra and New Zealand Post to track customers’ orders using blockchain technology. The system aimed to improve supply chain transparency. Fonterra and supplements company Blackmores were the first to use the traceability system on their products. The food safety framework aimed to enhance consumer confidence and was part...

Milk prices lift in latest Global Dairy Trade auction

[18 April/NZ Farmer] Dairy prices rose 2.7 percent at the latest Global Dairy Trade auction. This was the first price increase since early February. All categories increased with the key whole milk powder price rising 0.9 percent. Skim milk powder increased 3.6 percent, butter was up 2.9 percent, anhydrous milk fat 5.3 percent, rennet casein...

Shareholders council puts spotlight on Fonterra’s value and capital spending

[19 April/NZ Herald] The Fonterra Shareholders Council has commissioned a new study to see if Fonterra’s farmer-shareholders are better off as a result of the co-operative’s creation.  The council is comprised 25 farmer-elected representatives. Chairman, Duncan Coull, said the questions needed to be answered and farmers needed confidence that capital was being put to good...

Fonterra does U-turn on invoice payments to tradies

[16 April/NZ Herald] Fonterra is going to reverse their delayed payment policy that caused financial difficulties for many small suppliers and it will return to paying its small trades and services suppliers on normal business terms again. Small Business Minister, Stuart Nash, congratulated Fonterra on its policy change. He said he had personally raised the...

A2 Milk Co signs exclusive deal in South Korea

[16 April/NZ Herald] The A2 Milk Company (‘a2’) has signed a distribution deal with Yujan Corp to promote and distribute a2 branded products in South Korea. The products will be sourced from New Zealand and Australia, with nutritional products produced by Synlait Milk. The company’s shares rose 16 cents. a2 Managing Director, Geoff Babidge, said...

DairyNZ: Robust science the most effective tool to protect water

[5 April/The Country] DairyNZ’s team of environmental scientists, policy advisers and sustainability were taking a solutions focused approach to help farmers meet environmental limits and improve water quality. Levies were being used to deliver science and tools that gave confidence that any required changes were sound. DairyNZ were working with regional councils, crown research institutes,...

Synlait to double lactoferrin capacity following new supply agreement

[9 April/NZ Farmer] Synlait Milk secured a multi-year supply agreement that will underwrite an $18 million investment to double lactoferrin manufacturing capacity at its Dunsandel plant. The agreement was with a confidential customer. The Dunsandel expansion is expected to be completed by October. Synlait Managing Director and Executive Officer, John Penno, said lactoferrin was a...

Waikato Dairy awards winners announced

[10 April/The Country] First time entrants, Steve Gillies and Amy Johnson, were the winners of the 2018 Waikato Dairy Industry Awards as the region’s Share Farmer of the Year. Chelsea Smith also won the 2018 Waikato Dairy Manager of the Year, and Aaron Courage the 2018 Waikato Dairy Trainee of the Year. Steve and Amy...

Meet Fonterra’s next chief exec

[5 April/Farmers Weekly] Dairy farming leaders said communication skills and transparency were high among the qualities needed in Fonterra’s next chief executive. Federated Farmers National Dairy Section Vice-Chairman, Wayne Langford, said listening to stakeholders was a prerequisite for the new leader. Farm leaders welcomed the transition process and they were now at the short list...

Milk price risks have moderated

[10 April/Farmers Weekly] The BNZ Economics Research group have forecast a price of $6.10/kg for milksolids. Senior Economist, Doug Steel, said global dairy prices were expected to fall in 2018 but the fall was moderated with the strong Euro currency. Mr Steele assumed that milk powder prices would remain between US$2,900 to US$3,300 per tonne....

A2 Milk shares tumble after Nestle launches competing formula

[28 March/The Country] A2 Milk shares fell 6.5 percent due to Nestle confirming its launch of an A2 infant formula product. A Nestle spokeswoman confirmed the release. Salt Funds’ Managing Director, Matt Goodson, said the price was being driven down because of this news and that there were fears large premiums may fall. A2 milk...

Chinese-owned dairy firm plans NZX listing

[29 March/The Country] Milk New Zealand planned to list a company on the NZX within 3-5 years. Milk NZ Managing Director, Terry Lee, said it would give dairy farmers different options for supply and ownership. Milk NZ expanded to become one of the largest dairy farm groups in New Zealand with 29 farms milking 30,000...

Beingmate write down behind Fonterra first-half loss

[22 March/Otago Daily Times] Fonterra has posted a $348 million after tax loss for its first half of trading, largely due to the $405 million write-down in the value of its stake in Chinese infant formula distributor, Beingmate. Fonterra Chairman, John Wilson, said shareholders would be rightfully disappointed with this outcome and that Beingmate’s continued...

Synlait posts record first-half net profit

[21 March/The Country] Dairy company Synlait posted a record first-half net profit mainly due to its relationship with The a2 Milk Company and its increased manufacture of high-margin products. Profit increased from $10.2 million in the previous year to $40.7 million in the six months ended 31 January. Synlait expected the second half to not...

Farmers are the brand for New Zealand dairy industry

[26 March/NZ Farmer] According to Dairy Industry Leader and CEO of TheLand, Justine Kidd, the industry needed to shift from its traditional business models to one that worked closely with manufacturers. It would be a shift from the co-operative model where farmers believe they need to own the value chain, to one that collaborates with...