Dairy

Leveraging Maori agribusiness economy

[19 July/NZ Herald] General Manager of Maori Strategy at Fonterra, Tiaki Hunia, has been traveling  for 11 months talking to Maori suppliers and to ensure they felt part of the co-operative, that sound communication channels were in place, and that they had the support and capacity to grow their businesses. Maori were reported to own...

Rabobank predicts 2% NZ milk production growth in 2018/19

[19 July/NZ Herald] Rabobank expects New Zealand milk production to grow by 2 percent in the current season, and a farmgate milk price of $6.80 per kg of milksolids. The bank said the milk pool for the current season would grow again if the weather was favourable. It noted it would be a real test...

Dairy prices fall for fourth auction

[18 July/Radio NZ] Dairy prices fell at the latest global auction. They reached their lowest level in seven months. The average price was down 1.7 percent to USD3,222 per tonne. This came after a 5 percent fall in the previous auction. The price of whole milk powder rose 1.5 percent. Volumes sold fell 4 percent...

Danone reassures NZ customers after UK baby milk complaints

[17 July/Otago Daily Times] Danone was investigating reports that its Aptamil baby milk formula had made some infants unwell in Britain. The product is not sold in New Zealand. Danone said it was taking all feedback very seriously. They reassured parents the quality and safety of their products was the number one priority. The company...

Fonterra’s Aussie farmers complain Kiwi counterparts get the cream

[13 July/Stuff] Fonterra’s Australian dairy farmers are queuing up to supply the New Zealand co-operative with their milk. The amount of milk Fonterra Australia has collected increased by 400 million litres from last season, however Australian dairy farmers say they are annoyed they are being paid less than New Zealand farmers. They were paid $6.19...

Keytone Dairy completes fund raising for ASX IPO

[12 July/Dairy Reporter] Keytone Dairy Corporation, a New Zealand based manufacturer, packer and exporter of powdered dairy products, raised AUD15 million as part of its IPO for its Australian Securities Index listing. Demand for shares significantly exceeded the maximum fund raising target. Scale backs on the number of applications received had been applied. Peloton Capital...

A2 Milk heading for a record result after big sales lift

[12 July/NZ Herald] A2 Milk are on track to report another record profit next month and reported a 68 percent lift in revenue. Its revenue was said to be $922 million for the year to June 2018, up from $549.5 million in the previous year. It said it had completed its planning cycle for the...

Fonterra ‘humming’ in Greater China – Zhu

[11 July/NZ Herald] Fonterra’s top executive in China, Christina Zhu, said Fonterra’s business in China was going well despite challenges with the investment in Beingmate. Bao Xiufei had been appointed as the new General Manager for Beingmate, which Fonterra saw as a step in the right direction. Ms Zhu explained the difference between having an...

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...