Dairy

Dairy prices slump 5% in worst fall this year

[4 July/NBR] Dairy prices fell 10 percent at the Global Dairy Trade auction. This auction marked the 10th anniversary since it started. Whole milk powder fell by 7.3 percent which was the largest decline. Prices were under pressure due to the total volume sold increasing. Fonterra’s latest production update reported a 6.6 percent increase in...

a2’s new boss will be paid more than twice as much as the current MD

[5 July/NBR] The salary of a2 Milk’s new managing director, Jayne Hrdlicka, would be more than double that of her predecessor. She would take over the role on July 16. Ms Hrdlicka was previously the Chief Executive of the Jetstar Group, and would start on a base salary of AUD1.5 million. Her short term incentive...

Synlait launches bold environmental sustainability programme

[28 June/The Country] Synlait Milk marked its 10th year in business by launching a sustainability programme designed to lead it through the next decade. It featured bold impact reduction ambitions. The main one being to reduce greenhouse gas emissions by 35 percent per kilogram of milksolids on farm and 50 percent off farm by 2028....

Another big costly whole-milk powder plant off Fonterra’s menu

[1 July/NZ Herald] According to Fonterra Chief Operating Officer, Kelvin Wickham, the co-operative is unlikely to need to spend large on another whole milk powder plant for a long time. He confirmed that the Lichfield milk powder dryer was only used over the peak three to four months of the dairy year just ended. He...

Clement to take helm at Synlait

[26 June/Farmers Weekly] Leon Clement has been announced as Synlait Milk’s new chief executive and will start in August. He was previously Managing Director of Fonterra Brands. His appointment was the outcome of a global recruitment search following John Penno’s announcement to stand down. Chairman, Graeme Milne, said Leon had led major businesses internationally and...

Fonterra hopes new Beingmate general manager will transform company

[2 July/Stuff] Fonterra’s Chinese partner Beingmate has appointed a new general manager. Fonterra’s Chief Executive, Theo Spierings, welcomed the move as a signal of the company’s transformation. Fonterra wrote off $405 million of its $750 million investment in Beingmate earlier this year. The new general manager is Bao Xiufei (Bob). Mr Spierings said they knew...

Air New Zealand’s Christopher Luxon makes call on top job at Fonterra

[26 June/NZ Herald] Air New Zealand Chief Executive, Christopher Luxon, said he was not interested in the top job at Fonterra and remained committed to the airline. There had been speculation on whether he would move to Fonterra after the resignation of Theo Spierings. He said he was aware of the speculation on the subject...

Falling global supply growth sets tone for strong 18/19 dairy season

[22 June/Rabobank] According to Rabobank’s Dairy Quarterly report, supply growth stalled across the major dairy regions in recent months. A New Zealand milk price of $6.80 was now within reach according to the report. The bank said that with milk supply growth out of Europe and the U.S. failing to meet market expectations, global farmgate...

Fonterra adds new beverage division

[21 June/Dairy Reporter] Fonterra is adding a new channel to its global foodservice business, Beverage House, to capitalise on an increased global demand for adventurous tea and coffee drinks. Beverages made with yoghurt, topped with cream cheese and mixed with creams were growing in popularity, leading to this new division. Fonterra said almost 600 million...

Dairy product prices slip again

[20 June/Rural Life] Dairy product prices fell at the Global Dairy Trade Auction. Prices fell 1.2 percent from the previous auction two weeks ago. Whole milk powder fell 1 percent to USD3,189 per tonne. Regular grade whole milk powder was down 1.4 percent. Cheddar dropped 3.6 percent and anhydrous milk fat fell 2.5 percent. AgriHQ...

Winston Peters pins $2B-plus ‘losses’ to NZ on Fonterra

[18 June/NZ Herald] Deputy Prime Minister, Winston Peters, said the country’s largest business, Fonterra, was costing the economy more than $2 billion from food safety and animal welfare scares. He added we would not become a great, first world trading nation until we faced some blunt commercial facts, and that he believed in commercial accountability....

Danone invests in Yashili New Zealand

[12 June/Dairy Reporter] Danone and Yashili signed a memorandum of understanding where Danone have indicated an intention to acquire 49 percent of the shares in the dairy company Yashili New Zealand Dairy Co. The terms of the sale are yet to be finalised. Yashili said such agreements could include a share purchase agreement, a shareholders...

Fonterra powders earn premium price over rivals’ same products: chairman

[13 June/NZ Herald] Fonterra Chairman, John Wilson, said its dairy ingredients were selling for $100 to $400 per tonne more than the same milk powder products of its competitors which could significantly boost the milk price. He added its Trusted Goodness quality seal marketing initiative was responsible for the price spike which was noticeable on...

Fonterra’s milk price calculations higher than competition – Commission

[14 June/NZ Herald] The Commerce Commission said Fonterra’s estimated risk in calculating the cost of financing milk processing operations was too low, which resulted in it calculating a higher milk price than its competitors. The cost of financing feeds into the calculation of the milk price Fonterra paid its customers. Commerce Commission Deputy Chair, Sue...

Massive fund manager BlackRock reveals 5 per cent holding in a2 Milk

[7 June/NZ Herald] One of the world’s biggest fund managers, BlackRock, emerged as a significant shareholder in the a2 Milk Company with a 5 percent stake. It said recent purchases took it over the 5 percent threshold, meaning it was required to declare its stake. A2 Milk Company became New Zealand’s largest listed company earlier...

Greater food safety reassurance needed over M bovis – exporter

[31 May/Radio NZ] New Image Group Founder, Graeme Clegg, said he had been fielding concerned calls about his infant formula from around the world about Mycoplasma bovis. Around 150,000 cattle will be culled as part of the eradication programme. Mycoplasma bovis can cause lameness, abortions and mastitis in cows, but there is no risk to...

Westland, Synlait forecast higher milk prices after Fonterra hike

[1 June/The Country] A bullish outlook for butter prices encouraged Westland Milk Products to increase its farmer payout forecast from $6.75 to $7.20 per kg of milksolids for 2018/19. This compares with $7.00 for Fonterra and Synlait Milk. Westland Chairman, Pete Morrison, said the coming season’s forecast was driven by an improved sales outlook. He...

Fonterra approaches farmers to switch from Westland Milk Products

[25 May/The Country] Fonterra has approached Westland Milk Products suppliers to switch loyalties with the promise of better returns. Federated Farmers President for the region, Peter Langford, said it was known that Westland suppliers had been talking to Fonterra as it tried to secure supply on the West Coast. He expected some suppliers would switch...

S&P: Fonterra’s credit rating ok, for now

[25 May/NZ Herald] S&P Global said Fonterra’s credit rating had not been affected by the co-operative’s recent earnings downgrade. Fonterra increased the farm gate milk price from $6.55/kg to $6.75/kg per kilo of milk solids for the 2017/18 season and noted that it expected to be outside the target end of year gearing range. The...

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...