Dairy

Synlait to double lactoferrin capacity following new supply agreement

[9 April/NZ Farmer] Synlait Milk secured a multi-year supply agreement that will underwrite an $18 million investment to double lactoferrin manufacturing capacity at its Dunsandel plant. The agreement was with a confidential customer. The Dunsandel expansion is expected to be completed by October. Synlait Managing Director and Executive Officer, John Penno, said lactoferrin was a...

Waikato Dairy awards winners announced

[10 April/The Country] First time entrants, Steve Gillies and Amy Johnson, were the winners of the 2018 Waikato Dairy Industry Awards as the region’s Share Farmer of the Year. Chelsea Smith also won the 2018 Waikato Dairy Manager of the Year, and Aaron Courage the 2018 Waikato Dairy Trainee of the Year. Steve and Amy...

Meet Fonterra’s next chief exec

[5 April/Farmers Weekly] Dairy farming leaders said communication skills and transparency were high among the qualities needed in Fonterra’s next chief executive. Federated Farmers National Dairy Section Vice-Chairman, Wayne Langford, said listening to stakeholders was a prerequisite for the new leader. Farm leaders welcomed the transition process and they were now at the short list...

Milk price risks have moderated

[10 April/Farmers Weekly] The BNZ Economics Research group have forecast a price of $6.10/kg for milksolids. Senior Economist, Doug Steel, said global dairy prices were expected to fall in 2018 but the fall was moderated with the strong Euro currency. Mr Steele assumed that milk powder prices would remain between US$2,900 to US$3,300 per tonne....

A2 Milk shares tumble after Nestle launches competing formula

[28 March/The Country] A2 Milk shares fell 6.5 percent due to Nestle confirming its launch of an A2 infant formula product. A Nestle spokeswoman confirmed the release. Salt Funds’ Managing Director, Matt Goodson, said the price was being driven down because of this news and that there were fears large premiums may fall. A2 milk...

Chinese-owned dairy firm plans NZX listing

[29 March/The Country] Milk New Zealand planned to list a company on the NZX within 3-5 years. Milk NZ Managing Director, Terry Lee, said it would give dairy farmers different options for supply and ownership. Milk NZ expanded to become one of the largest dairy farm groups in New Zealand with 29 farms milking 30,000...

Beingmate write down behind Fonterra first-half loss

[22 March/Otago Daily Times] Fonterra has posted a $348 million after tax loss for its first half of trading, largely due to the $405 million write-down in the value of its stake in Chinese infant formula distributor, Beingmate. Fonterra Chairman, John Wilson, said shareholders would be rightfully disappointed with this outcome and that Beingmate’s continued...

Synlait posts record first-half net profit

[21 March/The Country] Dairy company Synlait posted a record first-half net profit mainly due to its relationship with The a2 Milk Company and its increased manufacture of high-margin products. Profit increased from $10.2 million in the previous year to $40.7 million in the six months ended 31 January. Synlait expected the second half to not...

Farmers are the brand for New Zealand dairy industry

[26 March/NZ Farmer] According to Dairy Industry Leader and CEO of TheLand, Justine Kidd, the industry needed to shift from its traditional business models to one that worked closely with manufacturers. It would be a shift from the co-operative model where farmers believe they need to own the value chain, to one that collaborates with...

Southlander Loshni Manikam named Dairy Woman of the Year

[23 March/NZ Farmer] Human Behaviour and Leadership Expert, Loshni Manikam, was named 2018 Dairy Woman of the Year at the Dairy Women’s Network Conference last week. The awards ceremony was held on 23 March in Rotorua. Ms Manikam, originally from South Africa, milks 600 cows with her husband and three children in Southland. She is...

Dairy product prices down at GDT

[21 March/The Country] At the Global Dairy Trade Auction, dairy products fell, whereas whole milk powder increased unexpectedly despite unfavourable weather conditions. The overall GDT index fell 1.2 percent. AgriHQ Dairy Analyst, Amy Castleton, said that demand from North Asia was strong and that New Zealand milk production data will have also likely helped the...

Fonterra CEO search likely to come down to 3-5 candidates

[22 March/The Country] According to employment experts, Fonterra’s search for a replacement for current Chief Executive, Theo Spierings, will likely come down to between three to five candidates. Former Fonterra insiders said there were no obvious internal candidates for the role. Principal of Whitehead Group Employment Specialists, Max Whitehead, said there was a lot of...

Westland inks deal with Indonesia’s Kalbe

[19 March/Dairy Reporter] Westland Milk Products signed a Memorandum of Understanding with Kalbe, an Indonesian consumer health and nutrition company. Westland Milk Product’s Chief Executive, Toni Brendish, said this was a significant opportunity to work with a South East Asian market leader and that this will lead to a strategic relationship with Kalbe. Ms Brendish...

Dairy industry expects big day tomorrow

[20 March/Otago Daily Times] The most recent GlobalDairyTrade auction will be followed by the interim reports of both Fonterra and Synlait. Craigs Investment Partners Broker, Chris Timms, said prices were up 12.2 percent from the lows in December and were back at similar levels to the middle of last year. He added that most economists...

Fonterra close to reaching Argentina deal

 [15 March/Rural Life] According to a media report by La Nacion, Fonterra were close to reaching a deal with SanCor, an Argentina-based dairy co-operative. They reported that Fonterra and SanCor would form a new company with Fonterra having 80 to 90 percent control. SanCor owed 1900 individual creditors $101 million but as part of the...

Fonterra partners with Beca on VR training technology

[7 March/Dairy Reporter] Beca and Fonterra have partnered to develop a virtual reality health and safety training technology. A Fonterra spokesperson said they commissioned Beca to develop the tool and therefore own the rights to the application. The reason for the technology is part of Fonterra’s commitment to become a world leader in risk mitigation....

Mataura Valley Milk offers strong milk price

[9 March/NZ Farmer] Mataura Valley Milk General Manager, Bernard May, said the company was offering a competitive milk price with a supply premium of 20 cents per kilogram of milk solids. This was along with other incentives adding up to a total payment advantage of up to 55.5c/kg. He added that he was confident it...

Milk payout lowered after cyclone

[7 March/Otago Daily Times] Ex Cyclone Fehi is affecting farmers as their co-operative Westland Milk Products reduced its forecast payout for the 2017-18 season. Westland Milk Products Chairman, Peter Morrison, said the Board had considered the bottom line financial impact due to interruption in production and that the costs were equivalent to 8-10c per kilo...

Dairy prices slip for a second straight auction

[7 March/The Country] Dairy Product Prices declined at the Global Dairy Trade Auction, with whole milk powder declining 0.8 percent due to an increase in supply. The GDT index fell 0.6 percent from the previous auction. AgriHQ Dairy Analyst, Amy Castleton, said Fonterra had increased its whole milk powder offer volumes ahead of this event...

Waikato to get new milk powder factory

[27 February/Radio NZ] Synlait is investing $260 million into the development of a new milk powder factory in Waikato. The company said they were buying 28 hectares in Pokeno to build an infant base powder factory, and that they expected the first dryer to produce 40,000 tonnes a year. Synlait’s Chief Executive, John Penno, said...

Fonterra Media gag ‘bizarre’ says former board member

[5 March/NZ Herald] Former Fonterra Board Member, Greg Gent, said the Co-operative’s move to gag former director Leonie Guiney from talking to the media is bizarre. The legal gagging order issued by Justice Clark restrained NZX Rural Limited from using, publishing or disseminating confidential information allegedly received from Ms Guiney and also restrains her from...

a2 breaks $10 billion valuation mark

[22 February/NZ Herald] After a recent announcement of another bumper profit and the formation of a joint venture with Fonterra, the a2 Milk Company (‘A2 Milk’) has become New Zealand’s largest listed company. The announcements raised the the company’s share price by $4.25 to a record $13.75. This gave the company a market capitalisation of...

Fonterra milk price remains steady as prices hold at GDT

[20 February/The Country] After the recent GlobalDairyTrade auction, Fonterra’s farmgate milk price forecast for 2017/18 looked likely to remain intact. Whole milk powder prices rose by 0.3 percent which represented a fourth gain in a row since falling in December. According to economists, as the end of the season approaches and with 80 percent of...

Dairy industry law changes ‘inevitable’: Minister

 [19 February/The Country] Agriculture Minister Damien O’Connor said that changes to the Dairy Industry Restructuring Act (DIRA) are inevitable based on a review of the dairy industry this year. This comes after the misinformation within the industry that the review he announced recently would be less in depth than a review which had previously been...