Dairy

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...

Fonterra sells livestock division to Carrfields

[9 January/Farmers Weekly] Fonterra has reported the sale of Farm Source Livestock division to Carrfields Livestock. Director of Farm Source stores Richard Allen reported the decision to sell was in the context of a larger review underway within the co-op. While Farm Source’s livestock division has contributed positive returns since inception, the investment required to...

a2 Milk appoints former McKinsey, Fonterra execs to management team

[8 January/NZ Herald] The A2 Milk Company (‘A2 Milk’) has appointed a former McKinsey and Co consultant and a former Fonterra executive to new roles in its management team to cover emerging markets and technical issues. A2 Milk reported Melanie Kansil had been appointed its Chief Commercial Officer, effective in the first half of this...

Dairy prices start 2019 with 2.8% gain at GDT auction

[3 January/The Country] Dairy product prices for all products have experienced a gain at the latest Global Dairy Trade (GDT) Auction. NZX Dairy analyst Robert Gibson reported this is partially due to a decline in offer volumes. Whole milk powder prices rose by 1.2% to USD2705 a tonne. Recorded gains came against a pickup in...

John Nicholls elected to Fonterra board

[20 December/Dairy News] Fonterra farmers have elected Canterbury farmer John Nicholls to the board.  Mr Nicholls will take his position with immediate effect.  He received 53% support in the second director election; with the other candidate Jamie Tuuta receiving 37% support. Mr Nicholls’ election means Fonterra farmers have only elected one of the three candidates...

Fonterra ‘green shoots’ emerging for China’s Beingmate

[16 December/NZ Herald] Fonterra is optimistic that Beingmate Baby and Child, the Chinese infant formula company that the co-op has an 18.8% interest in, has turned the corner. The co-op earlier this year wrote down the value of the stake by $405 million. The company has forecast a 28m renminbi (RMB) ($5.9m) to 78m RMB...

Commerce Commission nudges Fonterra towards greater transparency

[14 December/The Country] The Commerce Commission’s final report on the latest season’s milk price manual gave Fonterra Cooperative Group a ‘pass’ mark, saying there were no major concerns over the latest amendments, however the Commission noted that it is looking for more transparency from the dairy processor. The Commission said it will take a closer...

Synlait signs up first Waikato-based milk suppliers

[17 December/Dairy News] Listed milk processor Synlait has announced that it has signed up its first Waikato dairy farmers to supply the company’s new Pokeno plant from 2019/20 season. Synlait’s entry into Waikato region provides suppliers of Fonterra and Open Country Dairy, who have dominated the milk supply base in the dairy heartland, with another...

Fonterra to reward and punish farmers over animal welfare and environment

[11 December/Stuff] Fonterra farmers will receive rewards for better care for the environment and their animals and those that fail to meet standards will be disadvantaged from July next year.  The co-op will also be providing farmers with the ability to fix the price of a percentage of their milk in a hedging scheme from...

Fonterra shocks farmers with milk advance payment clawback

[11 December/NZ Herald] Following Fonterra’s announcement of a cut in its forecast milk price for the 2018/19 season the co-op has also informed farmers that it will be resetting the advance payment schedule for season meaning farmers will be getting paid less than they expected in the coming months.  The advance rate for December milk...

Overseas trade buyers most likely for Tip Top

[8 December/NZ Herald] Tip Top is likely to attract interest from local and international trade buyers as well as private equity firms after Fonterra confirmed the ice-cream business was on the market. Investment bank FNZC is running the sale process and is understood to be sending out a term sheet for interested buyers. The Herald...

Fonterra makes play for developing countries

[1 December 2018/NZ Herald] Fonterra is making a push to make dairy affordable and accessible for low-income populations in developing regions in the Middle East, Africa, South Asia, and South America. Kelvin Wickham, Chief Operating Officer of Fonterra’s NZMP ingredients business, said Fonterra had previously sold commodity products in bulk into these markets but now...

Two for two: second Fonterra director election limited to two contestants

[27 November/NZ Herald] Fonterra Co-operative Group has announced that a second election for an unfilled director seat on the co-op’s board will be held over the next month. The two candidates will be self-nominated farmer-supported candidate, John Nicholls, and board nominee, Jamie Tuuta, both of whom did not receive sufficient support from shareholders to be...

State loan for Westland Milk

[29 November/Rural News] A loan of $10 million from the Provincial Growth Fund to Westland Milk Products will enable the dairy co-operative to build a new $22million plant at Hokitika. The plant will allow Westland to separately process multiple types of special quality milks into high value products, these are likely to include A2 milk...

$240m milk powder plant officially opened

[22 November/Radio NZ] A new $240 million nutritional powders manufacturing plant near Gore has been officially opened. The Mataura Valley Milk plant is a joint venture between State-owned China Animal Husbandry Group, which owns 72%, Southland farmers and institutional investors. Mataura Valley Milk general manager Bernard May said the plant was running at capacity, processing...

Dairy cow numbers rise by 2.7 per cent in latest numbers

[November 26/Stuff] Dairy cow numbers in New Zealand have increased 2.7 per cent on the 2016-17 year to total 4.99 million. Statistics for 2017-18 show the amount of milk processed remained largely static at 20.7 billion litres. Milk solid production continued its downward trend over the past three years, easing to 1.84m kilograms from 1.85...

Fonterra keeps cone of silence on Tip Top sale rumours

[22 November/Otago Daily Times] Fonterra has declined to be drawn on speculation that its New Zealand based ice cream company, Tip Top, may be up for sale as the co-operative looks to streamline its operation. The Australian newspaper said Fonterra is believed to be weighing up a sale of its South American operations, as well...

Dairy prices forecast to keep falling until next year

[21 November/Radio NZ] T he latest Global Dairy Auction saw average dairy prices slip 3.5 percent to USD2,727 a tonne. The key whole milk powder price fell 1.8 percent, while skim milk powder fell 1.6 percent and butter fell 9.6 percent. NZX dairy analyst Amy Castleton said whole milk volumes were at a peak, with...

NZ dairy production hits record in peak October month

[20 November/NZ Herald] Positive growing conditions over spring has driven NZ milk production to a record high of 271.08 million kilos of milksolids in the peak month of October, according to DCANZ data. The previous record was 270.8 million kg in October 2014. October year-on-year milk production was up 6.5 per cent while season to-date...

A2 Milk net profit rockets up 65 pct in first four months

[20 November/NZ Herald] The a2 Milk Company said its net profit has increased by 64.5 per cent to $86 million in the first four months of the new financial year, compared with the corresponding period last year, and that it was well prepared for any cross-border regulation changes in China. The dual-listed alternative milk company,...

Award-winner Blue River Dairy fourth on Fast 50 index

[16 November/Rural Life] Invercargill’s Blue River Dairy appears set to cement its place in the Fast 50 index for some time, given it expects to double its exports next year to 15 million cans of infant milk powder. At an Auckland awards ceremony for the annual Fast 50 survey, Blue River Dairy won the New...

‘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...