Dairy

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...

Dairy prices drop further

[5 September/ Farmers Weekly] Dairy commodity prices fell at the Global Dairy Trade auction, with the index falling 0.7 percent. Butter experienced the largest fall at 2.8 percent. The NZX Dairy Derivatives market had expected a 1 percent increase in unsalted butter, however it fell 2.4 percent. Whole milk powder fell 2.2 percent. There was...

Westland Milk lowers predicted payout range

[6 September/The Country] Westland Milk Products has lowered its predicted payout range five cents following a recent board meeting. Shareholders were advised the bottom line dropped to $6.05 per kilogram of milk solids. The final payout for 2017-18 was expected to be announced on September 25. Westland Milk expected a payout range between $6.75 and...

Fonterra set to lower 2018/19 milk price forecast

[30 August/NZ Herald] Fonterra is expected to lower its forecast $7.00 per kg milk price. It legally had to upgrade its price every three months. ASB Senior Rural Economist, Nathan Penny, said based on results since they opened at $7.00 per kg, a downgrade was almost inevitable. He added the market consensus was around $6.40...

Fed Farmers calls for supermarket milk boycott

[27 August/Rural Life] Federated Farmers wants New Zealander’s to stop buying milk from supermarkets, and buy it from dairies instead. This was a result of University of Auckland Marketing Professor, Bodo Lang, finding milk pricing in New Zealand was very high. Federated Farmers Dairy Chairman, Chris Lewis, said he avoided the supermarket when buying milk...

A2 Milk Co continues to grow

[22 August/Farmers Weekly] Infant formula sales in Australia and China are driving The A2 Milk Company’s (‘A2 Milk’) growth momentum. A2 Milk reported a 68 percent increase in revenue. Sales of A2 Platinum formula still dominated the business. According to Managing Director, Jayne Hrdlicka, the company continues to gain market share in both Australia and...

Dairy prices fall to eight-month low

[22 August/Radio NZ] Dairy prices fell to an eight month low at the most recent Global Dairy Trade Auction. The average price fell 3.6 percent to USD3044 per tonne. This was the lowest the average had been since December. The price of whole milk powder fell 2.1 percent and volumes sold were down 6 percent....

Westland shareholders to get update on strategic review

[20 August/The Country] Westland Milk Products is expecting to give shareholders an update on a strategic review before Christmas. Board Chairman, Pete Morrison, said it had begun implementing a new strategy that was focused on more segregated, higher value added products. The scope of the review includes Westland’s future ownership structure with options on the...

China-controlled Mataura Valley Milk starts production

[20 August/NZ Herald] Mataura Valley Milk’s production is under way as the first milk was delivered to its Gore plant. The company’s Founding Director, Ian Tulloch, said he was satisfied to see the plant open after eight years of work. He added it was already having a big impact on the district. The company’s major...

Fonterra ownership structure ‘not on the table’, says director Scott St John

[18 August/The Country] When speaking to the NZ Shareholders Association, Fonterra Director, Scott St John, said the co-operative wouldn’t be changing its ownership structure, but was interested in taking on partners to fund future projects. The co-op’s capital structure has been criticised as making it too hard to raise equity, and led to a poor...

Fonterra appoints 18-year veteran Miles Hurrell as interim CEO

[15 August/The Country] Fonterra has appointed Miles Hurrell as its interim CEO and has currently halted its global chief executive search. Mr Hurrell was the chief operating officer for Fonterra’s FarmSource unit and is replacing Theo Spierings who will leave the co-op next month. FarmSource is the division that works directly with the farmer-owners. Mr...

Fonterra reaches settlement with muzzled ex-director Leonie Guiney

[13 August/Stuff] The Fonterra board and former director, Leonie Guiney, have reached a settlement in their legal proceedings. The board said it had agreed to settle the proceedings and Fonterra agreed to meet her costs. In March, an injunction against Ms Guiney talking to media was ordered. The judge said at the time that there...