Olam International Limited, a leading integrated supply chain manager of agricultural products and food ingredients, today announced that it will invest and acquire 24.99% equity interest in Dairy Trust Limited (”DTL”), which is poised to become New Zealand’s second largest dairy processing company. The total value of their investment will be just above NZ$100 million (around A$80 million) after they sell their 19.9% stake in Open Country Cheese Co. to DTL. The deal enables Olam... ...Read more »
The inaugural trading event for Fonterra’s new internet-based sales platform, globalDairyTrade, concluded this morning. The online trading platform plans by Fonterra were announced in April this year in response to price volatility, according to Managing Director of GlobalDairyTrade, Kelvin Wickham. “Everything is pointing to the fact that this volatility is going to continue and that prices will move up and down, often unpredictably in response to supply and demand shocks,” he... ...Read more »
A new milk container is being sold in the US, which reportedly does not require crates or racks for shipping and storage, and reduces costs. Sam’s Club, the second largest wholesaler in the US, have already shifted to the new milk containers. The new containers are a square shaped gallon, which represent a packaging change consistent with the transformation of milk from pitchers to glass bottles in the late 1800’s and then cardboard cartons to plastic gallons in the early 1950’s. According... ...Read more »
Leading dairy companies Fonterra and National Foods are reportedly discussing the option of a joint bid for Australian dairy co-operative Dairy Farmers. Both companies have already sought ACCC approval for separate bids but a deal between the two is now in the offing. The idea would likely suit Fonterra as their desire to engage in a bidding war would have been reduced by their recent purchase of Nestlé’s Australian dessert and yoghurt operations. It is rumoured that the NZ dairy giant... ...Read more »
International and local dairy experts have warned that dairy farmers must be rewarded for developing and implementing sustainability initiatives if the industry is to overcome the challenges of climate change.The advice comes from dairy industry leaders who attended a forum hosted by the NSW Dairy Industry Conference and Milk Marketing NSW earlier this month in Sydney, where a commitment was made to the development of a ‘Climate Change Road Map’, modeled on UK and USA examples. Mr George... ...Read more »
Nestlé Australia Ltd has announced it has sold its yoghurt and dairy dessert business, including its Echuca factory, to Fonterra. Under the agreement, dairy giant Fonterra will also acquire the long-term rights to manufacture, market and sell Nestlé’s yoghurt and dairy dessert brands in Australia under licence, alongside its own existing brands, thereby creating a stronger competitive presence in the chilled dairy sector. John Doumani, Managing Director of Fonterra Australia New Zealand,... ...Read more »
Fonterra announced on Friday a record sixth step-up in milk price for its Victorian and Tasmanian milk supply for the 2007/08 season.The milk price increase is 17 cents/kg butterfat and 42 cents/kg protein and is retrospective to 1 July 2007. It will be paid to suppliers on 15 June 2008. National Milk Services Manager, Heather Stacy, said the announcement will drive industry growth and provides a significant boost for dairy regions in Victoria and Tasmania. “Our strong milk price is very encouraging... ...Read more »
National Foods Limited (NF) and Warrnambool Cheese and Butter Factory Company Holdings Ltd (WCB) yesterday announced their joint interest in pursuing an acquisition of Dairy Farmers. Although, their interest has been obvious since they sought a clearance from the ACCC for the proposed takeover back on April 17. If National Foods are successful in acquiring Dairy Farmers, it is proposed that NF and WCB will form a joint venture to run the existing cheese business of Dairy Farmers. Key aspects of the... ...Read more »
Giant NZ dairy firm Fonterra is just six weeks away from going live with their online trading platform - ‘GlobalDairyTrade’. The platform plans by Fonterra were announced in April this year in response to price volatility caused by a fundamental change in the marketplace, according to Managing Director of GlobalDairyTrade, Kelvin Wickham. “Everything is pointing to the fact that this volatility is going to continue and that prices will move up and down, often unpredictably... ...Read more »
A strike by German dairy farmers began on Tuesday with farmers refusing to supply milk to factories in response to falling farm gate prices, the German Federal Association of Dairy Cattle Farmers (BDM) said in a statement. The boycott, orchestrated by the 30,000 strong BDM, is in response to anger about farm gate prices falling by about 15 per cent this year. BDM data indicates that north German dairy farmers currently receive approximately 27 Euro cents per litre of milk supplied with their... ...Read more »