Tag: Fonterra

Fonterra posts US$422m profit after tax, to review Chile, Australian operations inline with strategy to prioritize New Zealand milk

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NEW ZEALAND – Farmer owned multinantional dairy cooperative Fonterra has recorded a NZ$599m (US$422m) reported profit after tax  for the 2021 financial year, as it moves into a new phase of growing the value of its business.  According to the cooperative, the 2021 financial year benefited significantly from the divestments of DFE Pharma and foodspring.   Normalized profit after tax grew from NZ$190m (US$134m) to NZ$588m (US$415m), driven by improved earnings and lower interest expense.  Fonterra reported a well-balanced sales performance across the regions where it operates with the Greater…

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Fonterra sells China JV farms to AustAsia Investment to focus more on New Zealand milk production

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China – Fonterra, a leading dairy cooperative owned by New Zealand dairy farmers, is selling its stake in two joint venture (JV) farms in Shandong province, China, to AustAsia Investment Holdings in line with its goals to focus more on production at its home country.  According to a statement from the company, the farms will be sold to Singapore-based AustAsia for US$115.5 million.   Fonterra had a 51% controlling stake in the farms and is expected to receive NZD 88 million ($62.1 million approx.) in sale proceeds.  The move to sell the Chinese JV farms follows a 2019 decision to…

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Fonterra opens revamped application centre in China as Nestlé mulls closure of UK confectionery factory

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CHINA – New Zealand multinational dairy co-operative Fonterra has opened its revamped application centre in Guangzhou, China, in an effort to support its growing foodservice business in southern China. Fonterra says the revamped center is more multipurpose than the previous one and will see the test and development of innovative products and applications unique to the ‘fast-moving’ China market. The premise will also enable the co-operative’s teams to hold more than 70 large demos and 150 small demos each year. “This updated application centre is a great enabler for our…

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

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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

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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

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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

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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

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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

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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

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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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