New Zealand dairy giant Fonterra embarks on a journey towards a future without coal

NEW ZEALAND – Fonterra, New Zealand’s premier dairy cooperative, is finally embarking on a journey towards a future where it does not rely on coal for its energy needs. Fonterra said it has been working on its transition to renewable energy and said it can, and will, get out of coal, with a couple of practical constraints. The company however admitted New Zealand’s Climate Change Commission’s pathway to ending coal use by 2037 is ambitious and will be challenging to meet. At the moment, Nine of Fonterra’s 29 sites use…

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French dairy company Sodiaal sells German cheese business to Meggle, Fonterra completes sale of two China farms

GERMANY – French dairy company Sodiaal has sold German cheese company Stegmann Emmentaler Käsereien GmbH to Meggle Group GmbH. The acquisition comes just a month after the French dairy company bought a 51% controlling interest in Yoplait S.A.S. from General Mills In exchange for the 51% stake it gave to Sodiaal, General Mills got a full ownership of the Canadian Yoplait business and a reduced royalty rate for use of the Yoplait and Liberté brands in the US and Canada. In a statement, Meggle said the acquisition of Stegmann sustainably…

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New Zealand dairy cooperative Fonterra to exit China to focus on home market

NEW ZEALAND – New Zealand multinational publicly traded dairy co-operative, Fonterra has announced plans to divest from its businesses in China, in a move to prioritize its home market. The company said that it will divest from its joint venture farms in China’s Shandong province and offload its remaining stake in Chinese infant formula manufacturer Beingmate. The decision comes after Fonterra agreed to offload its own farms in the country for approximately US$369 million and is similarly in line with the company’s strategy to focus on New Zealand milk. The…

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Fonterra joins forces with DSM to accelerate transition to methane free agriculture

NEW ZEALAND – New Zealand dairy co-operative Fonterra and Royal DSM, a global science-based company, have signed a collaboration agreement to accelerate the transition to lower methane agriculture. Methane is a major challenge for the agriculture sector, particularly in New Zealand, where it makes up almost half of the nation’s greenhouse gas emissions. Finding and applying solutions that would significantly contribute to achieving Paris Agreement commitments and New Zealand Zero-Carbon goals is thus a key priority for both companies. Use of Bovaer to cut methane emissions To this end, DSM…

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Fonterra owned Anchor launches New Zealand’s first plant-based milk bottles

NEW ZEALAND – Anchor, a key brand owned by the international exporter Fonterra Co-operative Group, is set to launch New Zealand’s first plant-based milk bottles, Blue range, with a new 2 litre bottle made from sugarcane. According to Fonterra, this aligns with their commitment to have all packaging reusable, recyclable or compostable by 2025. The sugarcane is natural, renewable and sustainably sourced in Brazil, one of the largest growers of sugarcane. In addition, the plant captures carbon dioxide from the atmosphere as it grows, resulting in a bottle that has…

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Fonterra set to sell its farms in China to local companies for US$369m to reduce debt

CHINA – Fonterra has agreed to offload its farms in China to a series of local companies in China for 555 million New Zealand dollars (US$369 million as it aims to focus on its home markets and reduce debt. The deal saw the dairy giant’s two farming hubs in Ying and Yutian sold for US$513 million, and in a separate deal it agreed to sell its 85 percent stake in a local farm for US$42m. “It’s fair to say it’s been a tough journey for us along the way, we…

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Fonterra acquires dairy processing and manufacturing subsidiary of Retail Food Group Limited

NEW ZEALAND – Retail Food Group Limited (RFG), a cafe and restaurant franchise company, has sold its dairy processing and manufacturing subsidiary Dairy Country to New Zealand-owned Fonterra Brands (Australia). RFG executive chairman Peter George said in a statement the move is part of the company’s 18-month restructure and transformation program. The company is focusing on its core franchising and coffee businesses as well as applying a new franchise system across its eight brands. “Our focus must be on our franchisees. We are only as strong as our franchisees. This…

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Dairy co-operative Fonterra appoints Teh-han Chow as Chief Executive Officer of Greater China

CHINA – Fonterra, multinational dairy co-operative, has confirmed the appointment of Teh-han Chow to the role of Chief Executive Officer of Greater China. Since December 2019, Teh-han has been at the helm in an acting capacity, overseeing the Co-op’s overall Greater China business, including Ingredients, Foodservice, Consumer Brands and China Farms. “He’s made an impressive contribution. It’s certainly not been a steady-state. Teh-han has been responsible for implementation of our new strategy across the Greater China business, and over the course of this calendar year, has shown outstanding resilience, resourcefulness and empathy in getting his team…

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Fonterra to roll out new payment for sustainable and high value milk

NEW ZEALAND – Fonterra, a New Zealand multinational dairy co-operative, has announced that it is introducing a Co-operative Difference Payment for farmers producing sustainable and high quality milk based on the Co-op’s on-farm sustainability and value targets. Effective from next season, from 1 June 2021, Fonterra said that it will be paying farmers an additional payment of up to 10 cents per kilogram of milk solids (kgMS) if the farm meets the Co-op’s on-farm sustainability and value targets. The dairy processor says that these are part of its strategy to…

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Fonterra reports major progress as half year profits climb to US$298.5m

NEW ZEALAND – New Zealand farmer-owned dairy co-operative, Fonterra lifted its half year net profit after tax to NZD501 million (US$298.5m), up from NZD72 million (US$42.2m), representing a 595.8% growth in reported profit as the company continues to reset its business. Fonterra reported a normalised net profit after tax of NZD293 million (US$171.68m), up from NZD72 million (US$42.2m) while the total group normalised Earnings Before Interest and Tax (EBIT) grew 87% to NZD584 million (US$342.2m). During the period, the company also managed to reduce its net debt to NZD5.8 billion…

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