Fonterra confirms timeline for Lactalis deal and $2-per-share capital return
The sale of Fonterra’s global consumer and related businesses is expected to be completed within two months.
FONTERRA'S DECISION to pump $555 million into Edendale and Lichfield plant upgrades represents a huge vote of confidence in the dairy industry and the provinces.
Federated Farmers Dairy chairman Andrew Hoggard says the investments will be "a great shot in the arm for jobs building this new capacity, let alone the 75 full-time jobs that will be generated plus many more downstream jobs that will flow from it".
"We're more than pleased to see this investment ahead of this season's peak-milk, given last year's buttermilk lakes represented a lost opportunity.
"Fonterra has recognised the need for more capacity with investments worth over half a billion dollars.
"It also shows how wrong it is to think that milk is a low value export."
Fonterra has announced that approval has been given to build a drier at the Lichfield site in South Waikato:
• Capable of processing up to 4.4 million litres per day
• Similar in size to the world's largest drier at Darfield which produces up to 30 metric tonnes of Whole Milk Powder per hour, and 700 metric tonnes per day
• Will use the latest energy-efficient processing and water reuse technology.
Three plants will also be installed at the Edendale site in Southland:
• Milk Protein Concentrate (MPC) plant which separates protein from skim milk and turns it into protein powder – capable of processing 1.1 million litres per day
• Reverse Osmosis (RO) plant which will increase capacity on an existing drier by 300,000 litres per day
• Anhydrous Milk Fat (AMF) plant capable of processing 550,000 litres of milk into cream per day.
The sale of Fonterra’s global consumer and related businesses is expected to be completed within two months.
Fonterra is boosting its butter production capacity to meet growing demand.
For the most part, dairy farmers in the Waikato, Bay of Plenty, Tairawhiti and the Manawatu appear to have not been too badly affected by recent storms across the upper North Island.
South Island dairy production is up on last year despite an unusually wet, dull and stormy summer, says DairyNZ lower South Island regional manager Jared Stockman.
Following a side-by-side rolling into a gully, Safer Farms has issued a new Safety Alert.
Coming in at a year-end total at 3088 units, a rise of around 10% over the 2806 total for 2024, the signs are that the New Zealand farm machinery industry is turning the corner after a difficult couple of years.