Dairy

‘It was like a rock concert’ – hundreds attend farm’s open day

[12 November/NZ Herald] Manawatu farmer, James Stewart, had some concerns when he agreed to host the general public on his farm as part of Fonterra’s Open Gate initiatives, but in hindsight he recognises he need not have worried. Mr Stewart said the day was a really positive experience.  Stewart Dairies was one of the 16...

Profits up at Westland Milk pre-tax

[9 November/NZ Herald] Westland Milk Products has reported profit before tax of $3.25million for its recently completed financial year (last year the co-op reported a before-tax profit was $29,000). On releasing its annual report the West Coast co-op acknowledged it was still not industry competitive and lacked “financial flexibility” due to high debt levels and...

Dairy prices slide in global auction

[7 November/NZ Herald] Dairy product prices slid at the latest Global Dairy Trade auction, led down by a further fall in the key whole milk powder price. Regular grade whole milk powder to ship in January fell by a larger-than-expected 6.4 per cent, NZX dairy analyst Amy Castleton noted that WMP offer volumes are forecast...

Fonterra shareholders simmer while embattled company paints brighter future at AGM

[9 November/NZ Herald] Fonterra’s new leadership is receiving support from the co-operative’s shareholders, but the AGM left little doubt that further financial blunders will not be tolerated. There were plenty of questions about Fonterra disappointing financial results for the year and investment decisions that have been made in China. Former Fonterra deputy chairman and shareholder...

Guiney, McBride win Fonterra board seats

[6 November/Rural News] Outgoing Zespri Chairman, Peter McBride, and South Canterbury farmer, Leonie Guiney, have both been voted by farmers onto the board of Fonterra Co-operative Group. The third vacancy has been left unfilled with none of the other candidates receiving a 50% favourable vote from farmers. The result means that sitting director, Ashley Waugh,...

Lewis Road, Westland launch top end butter in Texas, California markets

[3 November/The Country] Lewis Road Creamery, Westland Milk Products and Southern Pastures LP, New Zealand’s largest dairy farmland fund, are collaborating to introduce top shelf, grass fed milk butter to US markets. ‘Artisan’ is being produced by Westland in Hokitika and has been launched this month at premium stores in California and Texas. Southern Pastures...

DIRA input sought

[3 November/ODT Rural Life] Public consultation has been launched on the review of the Dairy Industry Restructuring Act 2001, the legislation which enabled the formation and operation of Fonterra. The government had announced the review was in process earlier in the year and Agriculture Minister, Damien O’Connor, launched the public consultation at a dairy farm...

Bumper spring milk flow puts pressure on payout

[31 October/NZ Farmer] National milk flows are 5.6% ahead of last season as favourable weather conditions have helped production levels. The growth partly reflects the poor production achieved last year when the weather was either too dry or too wet. ASB Bank economist, Nathan Penny, said that ASB has increased its milk growth forecast from...

Milk firm rejects false ad challenge by US competitor

[30 October/Radio NZ Rural] The a2 Milk Company has spurned a complaint about its product from other US based competitors saying it is based on incomplete and outdated scientific evidence.  The National Milk Producers Federation in the US has complained that a2 Milk is making false claims based on an unreliable and clinically insignificant study...

ASB’s milk forecast trimmed

[18 October/The Country] ASB decreased its milk price forecast by 25 cents to $6.25 due to a fall in global dairy prices. Prices dropped 0.3 percent this week, and prices had fallen at nine out of the previous 10 auctions. Individual product results were more mixed. According to ASB Senior Rural Economist, Nathan Penny, the...

Dairy prices steady

[17 October/Farmers Weekly] Dairy commodity prices eased 0.3 percent at the latest Global Dairy Trade event. This performance was better than expected. Whole milk powder prices fell, however prices for both butter and anhydrous milkfat increased. Skim milk powder was unchanged. Whole milk powder prices were expected to fall due to Fonterra lifting both its...

A2 Milk lifts China infant formula market share to 5.6 pct

[17 October/NZ Herald] The a2 Milk Company has increased its share of the Chinese infant formula market to 5.6 percent over the past year. It said revenue for the first three months of its financial year were consistent with company expectations, and reflected continued strong growth in infant formula and milk products. Retail store distribution...

Nestle set to launch A2 formula in New Zealand and Australia

[11 October/The Country] A2 Milk’s would have to contend with competition when Nestle rolled out an a1-beta free product in the next two months. It launched an A2 beta protein formula in China earlier this year. Category Business Head for Nestle, Tarun Malkani, said the product had met expectations in China with the intention of...

Milk production growth could impact dairy prices

[4 October/The Country] According to analysts, a strong start to the dairy season was affecting prices. At the most recent GlobalDairyTrade auction, prices fell 1.9 percent which was led by a large fall in the price of fats. Anhydrous milk fat prices were down 4.4 percent, and butter was down 5.9 percent. Whole milk powder...

Westland acknowledges payout ‘not competitive’

[1 October/The Country] Westland Milk Products held back its profits to give a final net payout of $6.07 per kilogram of milksolids. It lowered its predicted payout for the current season from $6.90 to $6.50. Its Chairman, Peter Morrison, said a substantial number of shareholders would receive an additional premium of 4.4 cents. He added...

Tatua payout tops $8 after record result

[27 September/Stuff] Tatua shareholders would receive a payout of $8.10 per kilogram of milk solids. This comes after it posted record annual revenue. It had operating revenue of $357 million, and earnings of $127 million. The results follow the release of Fonterra’s figures that showed its first loss in its history. Westland Milk Products also...

Lewis Road releases ‘milk of milks’

[26 September/Dairy News] Lewis Road Creamery launched its new Gold Top Jersey milk which contained the a2 B-Casein protein. It was sourced from Jersey Girl Organics in Matamata which produced its milk under its own brand. Lewis Road Founder, Peter Cullinane, said they wanted to bring New Zealanders the best milk the country had to...

Contest heats up for three Fonterra director seat vacancies

[24 September/The Country] Five candidates will contest the three seats available on the board of Fonterra. Zespri Chairman, Peter McBride, Maori Television Chairman, Jamie Tuuta, and sitting director, Ashley Waugh, would compete with former Fonterra director, Leonie Guiney and dairy farmer, John Nicholls, for the three seats. Mr McBride, Mr Tuuta, and Mr Waugh would...

a2 Milk boss Jayne Hrdlicka sells company shares only two months into job

[23 September/NZ Herald] The a2 Milk Company’s new CEO, Jayne Hrdlicka, has sold her shares in the company after two months on the job. She sold 178,616 shares in the company for around $4 million. She received them on the automatic exercise of rights in the company. Devon Funds Executive Chairman, Paul Glass, said her...

Dairy product prices down at GDT

[19 September/The Country] Dairy product prices fell at the latest Global Dairy Trade Auction. Whole milk powder continued to fall due to increased supply. The index fell 1.3 percent to USD2,934. Whole milk powder fell 1.8 percent. Fonterra increased its 12 month whole milk powder offer volumes by 20,450 tonnes. According to AgriHQ analyst, Amy...

Synlait almost doubles annual profit on sharp lift in formula sales

[19 September/The Country] Increased infant formula sales allowed Synlait Milk to nearly double its annual net profit. It warned the same earnings growth was unlikely in the current year. Synlait reported an after tax profit of $74.6 million for the year to July 31. According to its Chairman, Graeme Milne, it completed development of its...

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...