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

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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New Zealand milk production forecast to reach record levels in 2021 despite of declining national dairy herd

NEW ZEALAND – Milk production in New Zealand, one of the largest dairy producers in the world, is forecast to attain record production levels in 2021 despite of a shrinking national dairy herd. According to projections from the United States Department of Agriculture, total milk production is forecast at 22.2 million metric tons (MMT), 1.2 percent above the 21.98 MMT produced in 2020. USDA attributes the expected uptick in dairy production to an adequate preparation from farmers for the second half of the New Zealand production season and a cow…

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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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Nestlé to halt production at New Zealand facility, develops new sustainable packaging for confectionery in UK

NEW ZEALAND –  Swiss food manufacturing giant Nestlé has announced a proposal to relocate confectionery production from its  Wiri, New Zealand factory to a larger Allen’s factory in regional Victoria, Australia. The company said the relocation of operations at the Wiri site which produces Allen’s chews lollies for sale in Australia would result in up to 45 redundancies. Chris O’Donnell, confectionery general manager at Nestlé, said that the company regretted that the proposal will entail job losses at Wiri and that Nestlé would provide staff with a generous redundancy package…

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Westland Milk to boost consumer butter production as Arla Foods UK prepares to launch new butter product

NEW ZEALAND – New Zealand dairy company, Westland Milk Products has announced plans to boost consumer butter production as part of the company’s strategy to move away from being a supplier of bulk commodity butter. Westland Milk said it is investing NZD 40 million (about US$27.8 million) to upgrade its Hoktika plant and increase the production capacity of its consumer butter brand. The upgrades which will start in May are expected to almost double the production of the company’s Westgold butter brand to 42,000 tonnes a year. Facility expansion and…

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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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New Zealand, European Commission supports Rwanda’s agriculture sector with funding

Rwanda – The Government of New Zealand has joined in as the new partner of Farm to Market Alliance (FtMA), with its multi-year commitment of NZD 6.8 million (US$4.8m) to support smallholder farmers across Africa. As part of the contribution, Rwanda is set to receive NZD 4.2 million (US$3m) in the next three years to 2023, which will enable the organization scale up its support targeting 200,000 smallholder farmers in the country’s rural areas. FtMA is a unique alliance of six organizations with the mission to develop a sustainable and…

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Richard Wyeth appointed CEO of Yili-owned Westland Dairy Company

NEW ZEALAND – Richard Wyeth, the immediate former chief executive of Taupō-based milk processor Miraka, is the new CEO of Yili-owned Westland Dairy Company. Wyeth comes to Westland dairy with over 13 years of experience in the dairy industry, including holding a role as global sales manager for dairy product manufacturer Open Country Dairy. During his tenure, at Miraka, he was able to grow the organisation to over 140 employees, producing 240m UHT units and 35,000 tonnes of powdered milk per annum, with a turnover of more than US$250m. Wyeth…

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Dairyworks divests its ice cream brand portfolio to focus on its cheese business

NEW ZEALAND – Dairyworks, a subsidiary of Synlait Milk, has sold its Deep South ice cream brand and operations to New Zealand-based food company, Talley’s Group, effective 12 November 2020, as it looks trim its portfolio and focus on its core cheese business. The 42 years old Deep South brand was acquired by Dairyworks in 2016. Dairyworks was subsequently acquired by Synlait earlier this year, following an announcement in October. “The sale of Deep South enables Dairyworks to focus on our core business, explore new market opportunities and deliver strong…

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