Dairy

Westland buyer trades ahead

[04 September/Farmers Weekly] Westland Milk’s financial issues look well behind it as the milk processor’s new Chinese owner reported a half-year net profit of $800 million, which is well over the $588 million the Yili Group paid for the processor. Yili’s annual profit will cover both the Westland costs and the $660m Yili spent developing...

Strategic partner to fund growth

[03 September/Farmers Weekly] One of the country’s newest milk processors Mataura Valley Milk reports it has addressed financial concerns raised in its annual report and the hunt for a new investor is part of its business strategy to expand markets for its nutritional products. In its annual report to 31 December 2018 released earlier this...

Dairy Industry Restructuring Act passes first reading at Parliament

[30 August/The Country] The Dairy Industry Restructuring Act, or DIRA Bill narrowly passed its first reading at Parliament, 63 votes to 57. It will now go before a select committee, giving industry stakeholders a chance to have their say. The changes proposed by the government follow a lengthy review of 18 year-old-rules governing Fonterra Co-operative...

Demand for sheep milk prompts offer

[29 August/The Country] The New Zealand sheep dairy industry has taken a huge step forward with the launch of sheep milk toddler formula by Danone, a global giant in early childhood nutrition. Milk from free-range, grass-fed dairy sheep is currently supplied by Maui Milk from their two farms running 6000 ewes on the western shores...

Mataura Valley Milk seeking investment after one year of production

[28 August/Stuff NZ] Southland infant-milk formula producer Mataura Valley Milk is seeking a strategic partner to invest in the company, less than a year after its official opening as part of the next stage of its business strategy. Chief Executive Bernard May expects the process to take several months to complete. The company’s financial report...

New Westland dairy owner Yili could topple Danone as world’s most valuable dairy brand

[23 July / The Country] Yili is nearing the top of world dairy brand value rankings and is threatening to take the throne from Danone. Yili has been consistently Asia’s most valuable dairy brand for four years and has proved themselves committed to their global expansion programme according to Brand Finance Food and Drink 2019...

Synlait director operations resigns

[22 July / Scoop] Synlait has announced that their Director of Operations Neil Betteridge has resigned to pursue career opportunities outside the company, however he will help to assist with the transition period. Synlait thanked Mr Betteridge for his service to the company and acknowledged his key contributions. In the meantime General Manager for Supply...

Kaumātua says ‘no more’ to dairy farming in Southland

[22 July / Stuff NZ] Stewart Bull, Chairman of Ōraka-Aparima Rūnaka reports that they are taking a stand against any more increases to dairy farming in Southland, having approached the Southland District Council opposing any consents, in a move to protect future generations. Mr Bull reports that Ōraka-Aparima Rūnaka recognise the attempts being made by...

a2 Milk hits record high after favourable broker reports, study

[22 July / The Country] The a2 Milk Company’s share price has reached a record high on the NZX with stock closing at $17.13 on Monday, up 28 cents from Friday’s close, as the company benefited from both favourable academic and broker reports in the lead up to its annual result next month. One study...

Dairy product prices lift at Global Dairy Trade auction

(17 July/The Country) Dairy product prices increased 2.7% at the recent Global Dairy Trade Auction as 25,000 tonnes of product was sold. This follows four consecutive decreases in the index due to tighter global milk supplies especially for milk powder, milk fats and cheese, reported NZX dairy analysts Robert Gibson and Amy Castleton. Milk powder...

Overseas Investment Office says yes to Westland sale by Yili

(16 July/Stuff) The Overseas Investment Office is allowing Yili Group to carry out the purchase of Westland Milk Products. 94 percent of farmers had already voted in favour of the $558 million offer but the purchase had to receive OIO consent as the value of the assets and land was over $100 million. Yili is...

Management not model to blame

(12 July/Farmers Weekly) Co-operative Business New Zealand chief executive Craig Presland commented that the recent decrease in Westland Milk Products fortunes and risks to Fonterra are related to management decisions not the company model’s. Presland says that with competent management, a co-operative business model will likely stand the test of time. He agreed with analysts...

New Zealand tech helping cows in Germany enjoy the outdoors life

(8 July/The Country) A 60-bail, Centrus Composite Rotary Platform made by Waikato Milking Platforms is helping a dairy operation in Netzen, Germany become the only full-time, pasture based dairy farm in the country. The company running the farm, The RealGrass Group says that the rotary has made milking, breeding, handling and sorting the animals much...

People are drinking less milk in the US, so dairy industry turns to coffee in schools

(3 July/Stuff) The dairy industry in the US is looking to get all the help it can get as milk consumption is down 40% since 1975. Coffee bars selling iced-lattes are now appearing in US high schools in an attempt by diary groups to get people to increase milk consumption. Not all schools are receiving...

Ex Westland farmers want money

[2 July/Farmers Weekly] Former Westland Milk shareholders owed $11 million for their surrendered shares are asking the Overseas Investment Office to delay or stop the dairy company’s sale to Inner Mongolia Yili Industrial Group. Remaining shareholders vote on the proposed sale on Thursday but Peter Williams, a spokesman for six former Westland shareholders, says failure...

LIC to join NZX main board

[26 June/Farmers Weekly] Herd improvement and agritech co-operative LIC will move from the alternative board to the main board of the NZX (NZSX) next month. This comes as the NZX announced it will move to a single equities board from July 1 and close the NZAX and NXT. There are about 14 agritech companies on...

Young tanker fan gets a special treat at Fonterra

[24 June/The Country] The students at St Anthony’s School in Pahiatua studied different aspects of Health and Safety this year and to complement their learning. Their teacher organised a visit to Fonterra Cooperative Group with help from Tracey Lett, the Health and Safety Advisor for Fonterra’s Longburn and Pahiatua sites to see health and safety...

Big co-op shareholder to abstain

[21 June/Farmers Weekly] Westland Milk’s largest shareholder, the Southern Pastures corporate farmer, will abstain from voting on the sale of the co-operative to Mongolia Yili Industrial Group as they have other options for milk supply so believe the vote should come down to those who have no other supply options. Executive chairman Prem Maan said...

The Government once offered Westland a $10m loan but news of bonuses makes NZ First turn on the dairy co-op

[21 June/The Country] New Zealand First have accused Westland Milk of having a conflict of interest around its sale to a Chinese company. Earlier this year, the government was looking at loaning the dairy co-operative $9.9 million as part of an investment in the West Coast’s economy, however this idea was withdrawn following news that...

Dairy gets $25m genetics boost

[21 June/Farmers Weekly] $25.68 million will go towards lifting the performance and wellbeing of the national dairy herd during a seven year programme dubbed Resilient Dairy which was launched at National Fieldays by Agriculture Minister Damien O’Connor. The programme is being led by LIC with investment and support from the Ministry for Primary Industries and...

Media Release – Strong global market fundamentals see Rabobank hold farmgate milk price forecast of NZD 7.15/kgMS

[20 June/Rabobank] Rabobank has held its farmgate milk price forecast of 7.15/kgMS for the 2019/20 season due to global dairy market supply and demand fundamentals set to support strong prices. Emma Higgins, Rabobank Dairy Analyst reports that the first half of 2019 has resulted in lower milk production across the ‘big 7’ exporters compared to...

Pāmu launches deer milk beauty products in South Korea

[14 June/Stuff NZ] Pāmu deer milk is the key active ingredient in a range of beauty products which could carve out a niche in the lucrative Asian market. This marks the first time New Zealand deer milk has been sold for use in the Asian beauty industry after Pāmu signed a contract with Yuhan Corporation...

Dairy group gets members’ ducks in a row

[12 June/Rural Life] Southland Dairy Leaders Group’s (SDLG) most recent activity targets the new regulations around stock wintering practices in the region, which are expected to form part of the Government’s new national environmental standard for freshwater management. SDLG has been working with its member groups to ensure the Ministry for the Environment received the...

Oceania Dairy recognised at NZ China Trade Association awards

[11 June/The Country] Oceania Dairy Ltd has received an award for investment between China and New Zealand at this year’s HSBC New Zealand China Trade Association China Business Awards. Oceania Dairy, which has a plant just north of Glenavy, is a subsidiary of Inner Mongolia Yili Industrial Group (Yili), China’s largest dairy producer. The company...