Mar 21, 2018  -  Fonterra Co-operative Group Limited today increased its forecast Farmgate Milk Price for the 2017/18 season to $6.55 per kgMS and announced a full year forecast dividend range of 25 - 35 cents per share with an interim dividend of 10 cents per share.

Mar 16, 2018  -  The owners of a South Island dairy manufacturer plan to list their company on the Australian Securities Exchange, raising as much as A$20 million to expand.

Mar 14, 2018  -  Construction is underway on an advanced plant that will reduce the amount of groundwater extracted for Fonterra’s Darfield manufacturing site by around 70 per cent. Darfield is already a world leading facility and the $11 million investment in water processing technology will have a significant impact on its environmental footprint. “Thanks to the new plant we’ll save the equivalent of around 100 tanker loads of water every day,” says Robert Spurway, Head of Fonterra’s Global Operations. “As well as reducing water use, the new technology also decreases the amount of water the site discharges for irrigation. It’s a win-win situation.” The new plant uses a reverse osmosis technique to purify the water extracted from cow’s milk during the manufacturing process. Water is passed through a membrane filtration system which makes it drinkable and suitable for use in a range of onsite activities such as cooling, heating and cleaning. The Darfield development aligns with Fonterra’s six water commitments to help improve the quality of New Zealand’s waterways. “We’re prioritising investment to reduce water consumption. Last year we announced our 2020 target to reduce the amount of water we use across our 26 New Zealand manufacturing sites by 20 per cent. “The new plant will go a significant way towards helping us achieve our target, creating a manufacturing site that’s more self-sufficient.” The new plant is expected to be up and running by October this year, in time for the 2018/2019 milk season.

| a Fonterra release  ||  March 14, 2018   |||

Mar 13, 2018  -  New Zealand cheese continues to turn heads on the international stage, with Fonterra named category runner-up for its NZMP three-to-six month Cheddar Cheese in the 2018 World Championship Cheese Contest. NZMP Unsalted Butter was also runner up in its category in the prestigious competition held in the United States over the last week.The bi-annual competition features the cream of the cheese and butter world, with products from 26 countries vying for top honours. This year’s competition attracted a record-breaking 3,402 entries in over 120 categories. The Fonterra NZMP Cheddar Cheese is crafted at Fonterra’s Stirling site in Otago. Fonterra Site Manager Stirling Dwayne Smith says his team was delighted with the judges’ evaluation of the cheese, scoring it an impressive 99.15 out of 100. “We are really proud to receive this award, which is testament to the expertise of our cheesemakers. Making NZMP cheese is a collaborative affair, with Fonterra cheesemakers working together to carefully guide a cheese through its development to maturity. We carefully select the best ingredients to make the very best natural cheese and we take great care to make sure that every block is perfectly made for its intended use before we bring it to the market.” Fonterra Plant Manager Matt Walton, who leads the production team for the NZMP Unsalted Butter at Fonterra’s Te Rapa site, also says the award reflects the quality of the ingredients. “Our butter is all natural, with no flavourings, no additives and no salt – the only ingredient is fresh cream. It’s just good, old-fashioned butter that’s great tasting and great quality. Credit belongs to our Fonterra farmers because top-quality milk from grass-fed cows makes top-quality butter.” Fonterra Dairy Foods Category Director Casey Thomas said “We are delighted to have won two awards in this world-class event, competing against top cheeses and butters from many countries. It’s a great way to independently confirm that we produce some of the best dairy in the world.” The World Championship Cheese Contest, initiated in 1957, is the largest technical cheese, butter, and yogurt competition in the world. A team of 56 internationally renowned judges technically evaluated all entries over the three-day competition and commended the winners for their innovation and commitment to their craft. NZMP natural cheese and cream ingredients are exported to food manufacturers in more than 130 countries, where they are used in a variety of products and applications such as meals, bakery, sauces and snacks.

| A Fonterra release  ||  March 13, 2018   |||

Is dairying the worst offender when it comes to environment protection? Is dairying the worst offender when it comes to environment protection?  Writes Alastair Frizzell, managing director of Frizzell Agricultural Electronics in an article on Dairy News.

Companies are made by people - not by machinery or money.So says Francesco Botto Poala, chief operating officer of long-standing Italian textile company Reda.

A $25 million upgrade and expansion of Danone’s Auckland blending and processing plant in late February has doubled its production capacity for finished products.

Feb 27, 2018  - Synlait (NZX: SML; ASX: SM1) has conditionally purchased 28 hectares of land in Pokeno, North Waikato, to establish their second nutritional powder manufacturing site.

Currently an undeveloped site in New Zealand’s North Island, Synlait expects to invest around $260 million in the coming years as we establish our infant base powder manufacturing capability at the site.

Feb 21, 2018  -  Fonterra Co-operative Group Limited (Fonterra) and The a2 Milk Company (a2MC) have today entered into a comprehensive strategic relationship that links Fonterra’s global milk pool and supply chain, manufacturing capability and in-market sales and distribution capacity with a2MC’s brand strength and capabilities.

As part of the partnership, Fonterra will now begin conversations with its farmers to source an A2 milk pool for a2MC products in New Zealand, which is intended to significantly expand over time to help meet the growing demand for a2MC products. A similar milk pool in Australia will also be developed.

Announcing the deal, Fonterra CEO Theo Spierings and a2MC Managing Director and CEO Geoffrey Babidge said the partnership is designed to generate returns for both companies by growing demand in both local and international markets for products using a2MC’s brand strength and capabilities.

“The partnership is intended to fast-track market growth and this creates opportunity for our farmers to create additional value from their milk,” said Mr Spierings. “Fonterra’s high quality milk pools, our global supply chain, our manufacturing capabilities and knowledge, and our in-market sales and distribution expertise is being combined with a2MC’s brand strength to unlock new opportunities in a wide range of international markets. It is a win-win for both companies.

“We continue to see a strong future for dairy based on our existing range of products, including recent additions such as organic, low-lactose and high protein milk choices that consumers seek out for a premium. The a2MC products promoted by this partnership sit well within our overall portfolio of products.

“Consumers like to have choices and the growth of a2MC branded nutritional powders and fresh milk sales in Australia, for example, shows the potential. This partnership is all about finding ways to continue to delight our consumers and generate more value for our farmers.”

The partnership encompasses:

• New Zealand and Australian milk pools to support the strategic partnership, and in the first instance the Nutritional Products Manufacturing and Supply Agreement. Fonterra will now begin discussions with its farmers on the best way to source this A2 milk for a2MC products, and share the value it will create for farmers. It is intended that these milk pools will significantly expand over time to support new a2MC products and its new priority markets across South East Asia and the Middle East.
• Nutritional Products Manufacturing and Supply Agreement (NPMSA) whereby Fonterra will exclusively supply nutritional milk powder products in both bulk and consumer packaged formats intended for sale in a2MC’s new priority markets across South East Asia and the Middle East. These products will be produced at Fonterra’s facilities in New Zealand as well as Fonterra’s nutritionals facility, Darnum in Victoria, Australia.Distribution and sales arrangements, in respect of a2MC branded products whereby the companies will seek to establish distribution and sales arrangements to assist a2MC’s entry into its new priority markets across South East Asia and the Middle East.
• Exclusive period to explore a2MC branded butter and cheese, and China sourced liquid milk for sale in Australia, New Zealand and China. These relate to other dairy products not presently marketed by a2MC and would be complementary to Fonterra’s existing portfolio of dairy products.
• A jointly owned packaging facility will also be explored as an extension of the arrangements under the NPMSA and to cater for growth.
• A New Zealand Fresh Milk Licence which will see Fonterra hold an exclusive licensing arrangement for the production, distribution, sale and marketing of a2 MilkTM fresh milk for sale in New Zealand. Fonterra will leverage its substantial fresh milk capabilities to establish distribution across the country.

Industries rise, fall and evolve under the constant development of new and innovative technologies. Refrigeration changed how food was supplied, the lightbulb enabled us to utilise more hours in the day, the telephone connected people and the internet distributed information far better and quicker than ever before.