Dairy

Govt calls off $10m loan to Westland Milk following sale news

[19 March/The Country] The government has announced that they will no longer loan $9.9 million from the Provincial Growth Fund to Westland Milk Products after the news it is likely to be sold to a Chinese company. Westland has signed a conditional agreement to sell to Hongkong Jingang Trade Holding $588m. Shane Jones, Regional Development...

Westland Milk Products Signs Conditional Agreement For Sale of Co-operative

[Westland Milk Products] The board of Westland Co-operative Dairy Company Limited (Westland) have confirmed signing a conditional scheme implementation agreement to sell the co-operative to Hongkong Jingang Trade Holding Co. Limited. Hongkong Jingang Trade Holding Co is a wholly owned subsidiary of Yili Industrial Group (Yili). The sale is at $3.41 per share which represents...

Fonterra jobs go in shakeup but details under wraps

[15 March/Otago Daily Times] As a part of Fonterra’s “back to basics” organisation restructuring programme, some redundancies have been made. A spokesperson spoke on the matter, describing that the situation was not to do with numbers, but on creating more efficient teams within the organisation. The company last year recorded its first annual loss of...

Fonterra keen for a slice of a2

[11 March/Rural News] The a2 Milk Company and Fonterra Co-operative Group are continuing to partner as new commercial opportunities come to existence. Jayne Hrdlicka, Managing Director and Chief Executive of a2 Milk states the company has significant future growth plans, with the first step focusing on building the milk pool growth in Australia and New...

Fitch puts Fonterra on notice over credit rating

[05 March/NZ Herald] Fitch Ratings has put Fonterra Cooperative Group on notice over its credit rating, stating its asset sale programme will be important in controlling debt. The international ratings agency downgraded the outlook on Fonterra’s ‘A’ long-term issuer default rating to ‘negative’, from a previous ‘stable’ outlook. Fitch said last week’s earnings downgrade indicated...

Miles Hurrell appointed Fonterra CEO on a base salary of $195 million

[05 March/NZ Herald] Miles Hurrell has been permanently appointed into the CEO position at Fonterra Co-operative Group, with a base salary of $1.95 million after a six month trial period. After the announcement of Mr Hurrell’s appointment, Fonterra’s share price rose 3 cents to $4.28. John Monaghan, Chairman of Fonterra reported that the board is...

Fonterra lifts milk-price forecast

[01 March/Otago Daily Times] Fonterra Co-operative Group has moved its 2018-2019 forecast up from $6.00-$6.30 to $6.30-$6.60. Chairman John Monaghan states this is reflective of global milk prices across the last quarter. Global demand has strengthened since Fonterra’s last price milk update in December with stronger demand from Asia. Fonterra also revised its forecast earnings...

Govt warned over loaning WMP $10m

[28 February/Otago Daily Times] The government was warned that loaning Westland Milk Products $10 million may set a precedent to other companies to ask the government when they are not able to get a loan from the bank. In a brief from September, released on the Treasury website last week, officials advised Finance Minister Grant...

NZMP picks top 5 dairy trends for 2019

[27 February/Dairy Reporter] NZMP, global ingredients brand of Fonterra, has released its top five dairy trends for 2019 based on various global food and nutrition research providers. The trends include digestive wellness, focusing on the publics increasing awareness of microbiome science and its effects on overall health and wellbeing. Awareness has increased demand for products...

Fonterra takes stake in alternative protein start-up

[27 February/Rural News Group] Fonterra Co-operative Group has invested in a minority stake in Motif Ingredients, a US-based food ingredients company developing plant-based or cell-grown animal products including milk. Motif has been established by Ginkgo Bioworks, one of the world’s leading organism companies. Motif will use biotech experts to combine genetic science and fermentation technology...

Geothermal milk plant nearing completion

[26 February/Rural News Group] New Zealand’s second Māori-owned dairy plant project is on track to start producing in Kawerau in July. The $33 million plant is a joint venture between 11 Māori entities, including Poutama Trust which all together hold 67 percent, with the other 33 percent stake owned by Japanese company Imanaka. Poutama Trust...

Endorse M. bovis levy or pay more

[26 February/Rural News Group] DairyNZ consultation meetings across the country are encouraging farmers to endorse the Mycoplasma bovis levy of up to 3.9c/kgMS otherwise they could end up paying more and having less say in managing the continuing response to the disease. The proposed is being implemented under the Government Industry Agreement for Biosecurity Readiness...

Dairy prices continue to rise

[20 February/Radio New Zealand] The latest Global Dairy Trade auction resulted in average price increasing 0.9 percent to USD$3272 a tonne. This follows a 6.7 percent rise in the previous auction. Whole milk powder lifted by 0.3 percent to USD$3022 a tonne. Prices have been rising since November when they hit a two-year low due...

A2 Milk rallies by $1 billion after sharp lift in first half profit

[20 February/NZ Herald] The A2 Milk Company (‘A2 Milk’) reported a 55 percent increase in net profit for the six months to December 2018 resulting in shares increasing 10.5 percent to $14.22. This increased A2 Milk’s market capitalisation to $10.45 billion, again making them New Zealand’s biggest company by market capitalisation. The increased returns were...

New, higher, dairy price cycle appears set to start

[21 February/The Country] With global dairy supply tightening with little backstop in stocks, higher prices might occur initially. ASB has set its 2019-2020 forecast at $7 per kilo milk solids. ASB Senior Rural Economist Nathan Penny says that since spring 2016, global prices had traded within a relatively narrow range following the global dairy’s ‘’super...

A2 Milk set to report another bumper profit as China fears loom

[18 February /NZ Herald] The A2 Milk Company (‘A2 Milk’) is reporting its first half result on Wednesday 20th February. Expectations are that earnings will increase to around $200 million, up 39% on the previous period with this partly due to the company’s success in China’s infant formula market. Turnover is expected to reach $600...

Open Country challenges validity of Fonterra’s milk price

[18 February /NZ Herald] Open Country Dairy is questioning the way that Fonterra’s milk price was set in the 2018 season. This is despite the Commerce Commission accepting the price-setting process which must meet both efficiency and contestability elements required by law. Open Country Dairy is of the view that Fonterra’s asset beta was too...

Dairy proteins to fight diabetes: Kiwi firm Keytone targets Asia with new formula

[12 February /Dairy Reporter] Keytone Dairy has created two new formulations which are expected to support further growth in Asia. The company was created in 2014, and has introduced KeyDairy Diabetic Formula and KeyDairy Junior Formula which will be produced in New Zealand and exported to Asia, with the Chinese market being prioritised. The diabetic...

Fonterra seeks radical revamp of rules it operates under

[18 February /Radio NZ] Fonterra Co-operative Group have called for changes to made to the Dairy Industry Restructuring Act (DIRA) and for rules introduced when the co-operative was formed in 2001 to stop the company exploiting its market dominance for its own benefit to be removed or relaxed. The co-op’s submission calls for the largest...

Fonterra negotiates termination deal for Darnum JV with Beingmate

[12 February/NZ Herald] Fonterra has announced that it has taken back full ownership of the Darnum manufacturing plant in Australia, unwinding its processing joint venture with Chinese partner, Beingmate. The exact terms of the separation agreement remain confidential. A Fonterra spokeswoman said the deal had been structured to ensure no cash was paid by the...

Dairy product prices rally, led by milk powder

[7 February/NZ Herald] The most recent Global Dairy Trade auction resulted in prices moving higher for the fifth consecutive auction. NZX dairy analyst Robert Gibson said firm demand from Asian countries is likely to have helped to support prices. The key whole milk powder price increased 8.4 percent to USD3,027.  The auction results showed that...

Synlait follows Fonterra with lower forecast farm gate payout

[28 January/The Country] Synlait Milk has cut its forecast payout to farmers for the current season, following Fonterra’s lead, as weaker global demand and strong domestic production weighs on market prices. Synlait now expects to pay $6.25 per kilogram of milk solids for the 2019 season, down from its previous forecast of $6.75/kgMS. The company...

Former Fonterra chairman John Wilson dies

[28 January/NZ Herald] John Wilson, Fonterra’s former chairman, has died. Mr Wilson stood down from the top role at the company in July after a serious health scare and Fonterra reported that Mr Wilson, who was in his mid-50s, passed away after a hard-fought battle with illness. He is survived by his wife and four...

Fonterra says milk production running ahead of forecast

[16 January/NZ Herald] Based on production to December, Fonterra is forecasting production for the season to be up 3 per cent from the previous season, standing at 1,550 million kg of milk solids. Chief Executive, Miles Hurrell, noted that production has been boosted by favourable growing conditions, indicating it may increase from 3% over the...