Dairy

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...

DIRA revamp disappoints

[07 June/Farmers Weekly] Changes to the Dairy Industry Restructuring Act don’t go far enough, according to Fonterra’s Shareholders Council Chairman Duncan Coull as it should have instead refocused on the future to optimise value creation from milk. Fonterra Chairman John Monaghan also rued a missed opportunity to reform dairy industry regulations for the benefit of...

Dairy law changes spur dissent

[07 June/Rural Life] Agriculture Minister Damien O’Connor yesterday announced changes to be made to the Dairy Industry Restructuring Act 2001 (DIRA) and the Dairy Industry Restructuring Raw Milk Regulations 2012. Both Fonterra Co-operative Group and Federated Farmers believe that there has been a missed opportunity in the legislation. Fonterra supports the greater pricing transparency but...

Success in its rawest form

[31 May/Farmers Weekly] Northland sharemilkers Guy and Jaye Bakewell’s ingenuity is allowing them to help pay off their dairy cows faster whilst capitalising on consumers’ growing demand for raw, untreated milk. Four days a week in Auckland’s inner-city suburbs, a truck delivers raw milk in glass bottles to residents. For Mr and Mrs Bakewell, their...

First single breed standard milk launched by Lewis Road Creamery

[30 May/Stuff NZ] Lewis Road Creamery has unveiled a new range of standard milk on sale in supermarkets sourced solely from Waikato jersey cows. It is the first time a standard milk product from a single breed has been released in New Zealand. As well as a higher butterfat content, jersey milk contains less water,...

A2 Milk’s provider Synlait sets opening milk price at $7.00/kg

[28 May/The Country] A2 Milk’s key provider, Synlait Milk, has set its opening base milk price for the upcoming season at $7.00 kg of milk solids. Synlait also announced its forecast base milk price for the 2018/2019 season had increased from $6.25 kgMS to $6.40 kg which Chief Executive Leon Clement reports is due to...

Synlait’s Pokeno neighbour weighing up injunction to stop factory construction

[28 May/Stuff NZ] The adjacent landowner to the $280 million Synlait factory at Pokeno is threatening an injunction to stop further construction. Karl Ye recently won a Court of Appeal hearing which reinstated covenants over land Synlait purchased in February 2018. The covenants allowed the Synlait land to be used only for farming, lifestyle blocks...

Synlait and Tatua lift milk price for the new season

[28 May/Stuff NZ] Synlait has lifted its opening price to farmers for the 2019-20 season to $7 per kilogram of milk solids, but Tatua has gone one better to $7.50. By contrast, last week Fonterra offered a range of between $6.25-$7.25 per kg/MS for the new season, citing the difficulties of forecasting accurately 15 months...

Fonterra confirms closure of Vic factory

[23 May/Rural Life] Fonterra Co-operative Group have announced that it will close its factory in Western Victoria with 98 staff to be affected. Chief Executive Miles Hurrell announced that the closure is due to the Dennington plant is no longer viable in current market conditions. This is partly due to the ongoing effects of the...

Shareholders to vote on Westland sale

[21 May/Rural Life] Westland Milk Products’ farmer-shareholders are awaiting full disclosure from their board of directors on the proposed sale of their business to Chinese company Yili for $500 million. Shareholders are expected to vote in July on the conditional sale offer to Yili. The sale requires more than 50% of the shareholder base to...