New Zealand’s Commerce Commission has decided not to hold an inquiry into milk prices after arguing that there is enough competition at retail and wholesale level in the market. Dairy giant Fonterra, formed in 2001 to help promote New Zealand’s dairy exports, collects over 90 per cent of the country’s milk production and sets national prices. The Commission reviewed the way prices were set in New Zealand’s milk sector after complaints that retail prices were too high and... ...Read more »

New Zealand dairy group Fonterra has appointed former Friesland Foods executive Theo Spierings as its CEO.The dairy co-operative said today (14 July) that Spierings would replace departing CEO Andrew Ferrier from 26 September. Ferrier announced plans to resign last March. Fonterra chairman Sir Henry van der Heyden said Spierings would bring 25 years of knowledge of the global dairy industry to the company. “Spierings has a wealth of experience in managing dairy businesses across Asia, Latin... ...Read more »

Fonterra today announced that it has  raised AU$300 million (NZD $388.3 million) through its first ever issue of corporate bonds in Australia.The bonds are for a five year term, maturing in July 2016. They were priced at a spread of 100bp over swap. The bonds were issued by an Australian subsidiary, guaranteed by Fonterra Co-operative Group Limited. The company said it expects them to be rated A+ by Standard & Poor’s and AA- by Fitch, consistent with the agencies’ current ratings... ...Read more »

Fonterra, the world’s largest dairy exporter, has forecast that its payout for farmers could slide in 2011/12 after a “record” 12 months in the current financial year.The New Zealand dairy giant yesterday (24 May) predicted that its payout for the year starting on 1 June would be lower than the current year, when it expects to pay NZ$8.00-8.10 before retentions. The forecast for the current year – when Fonterra expects to see record production – comprises a milk price... ...Read more »

The war between manufacturers of infant formula and activist group Greenpeace has taken another step, with industry lobby group the Infant Nutrition Council stating that they are not capable of producing formula without any genetically modified content, and that such a demand is “unrealistic and unworkable” – despite the fact that their products are not accordingly labelled. The statement was made by the Council, which represents a number of baby food manufacturers, including Heinz,... ...Read more »

Fonterra has recorded its highest ever month for exports with 229,000 tonnes of its dairy products leaving New Zealand shores in March.Gary Romano, Managing Director of Fonterra Trade & Operations, said the record shipments are the result of continued growth in global demand for high quality dairy products from New Zealand. “Our supply chain team were effectively closing the door on an export container every 2.6 minutes. That’s equivalent to 560 containers a day.” “As... ...Read more »

Fonterra announced this week that cheddar cheese would be offered for sale on its globalDairyTrade electronic trading platform from the 19 July event. The addition will expand the range of products available on the platform to seven, including Whole Milk Powder, Skim Milk Powder, Butter Milk Powder and Anhydrous Milk Fat. Fonterra will begin offering Milk Protein Concentrate and Rennet Casein from the 17 May event. Ian Palliser, Director of Optimisation, Trading and Sourcing, said adding cheese was... ...Read more »

Fonterra has confirmed that its Chilean subsidiary Soprole has withdrawn a proposal to merge its business with Nestlé’s liquid and dairy business in the country. Fonterra CEO Andrew Ferrier said today (6 April) that Soprole and Nestlé have agreed to withdraw the application as the companies believed “the conditions to continue with the application were not appropriate”. The New Zealand co-operative and the Swiss dairy giant have no plans to present a new application to the Chilean... ...Read more »

New Zealand dairy co-operative Fonterra has today reported a net profit after tax of NZ$293 million, or 21c per share, for the six months to 31 January 2011, marking the first time Fonterra has reported a profit for the half year. The dairy co-operative said strong international dairy markets were supporting 2010/11 results, which they said is shaping up as one of Fonterra’s best years ever in terms of returns to its farmer shareholders. Announcing the Co-operative’s financial results for the... ...Read more »

Fonterra, the world’s number on dairy exporter, has decided to open up its globalDairyTrade auction site to allow other processors to sell dairy products on the platform.The New Zealand-based company, which launched the site in 2008, said dairy companies including Arla Foods and FrieslandCampina had helped develop a “draft set of market rules” to allow more than one seller to use the platform. However, so far, no other company has decided to join Fonterra on the site. Fonterra is... ...Read more »