Milk processors match or exceed Fonterra’s record $10/kgMS opening forecast for 2025-26 season
Milk processors are either matching or beating Fonterra's record $10/kgMS opening forecast milk price as the 2025-26 season gets underway.
THE MAORI dairy company Miraka, at Taupo, stole the limelight on John Key’s trade mission to China last week in Shanghai when it signed a joint venture deal to produce UHT milk for the new owners of the Crafar farms, Shanghai Pengxin.
In front of a group of top New Zealand business people, including Fonterra staff, the chairman of Miraka, Kingi Smiler, signed the deal for his company take milk from four former Crafar farms and eight local suppliers. This will be turned into high value 1L packs of UHT milk for export and distribution in China by Shanghai Pengxin.
Smiler told Dairy News from Shanghai that Miraka will spend $25 million to build the new UHT plant adjacent to its existing milk powder factory which exports most of its product to Vietnam as part of another joint venture with the largest dairy company in that country – Vinamilk.
“The new factory will take 80 million litres a year and we hope to be delivering some of the new UHT milk to China within about ten months. The UHT milk in 1L cartons will be for the growing ‘liquid milk’ trade in China. All the packaging will be done by us at our factory.”
Because of the lack of refrigeration, UHT milk is the recognised substitute for fresh milk. Fonterra also sells UHT milk in China, but Shanghai Pengxin’s deal with Miraka is seen as a coup for the Maori venture. Also of note is that Landcorp is managing Shanghai Pengxin’s farms.
Miraka will take milk from just four of the former Crafar farms; the remainder will continue to supply Fonterra.
Some of the farms are outside Miraka’s catchment area. Miraka has a waiting list of would-be suppliers; some them will likely pick up contracts as a result of this deal.
Smiler says the deal, which took about a year to complete, reflects the synergy between Miraka and Shanghai Pengxin. “This is positive for Miraka and the trusts that form Miraka,” he says.
Fonterra chief executive Miles Hurrell says the sale of the co-op’s consumer and associated businesses to Lactalis represents a great outcome for the co-op.
The world’s largest milk company Lactalis has won the bid for Fonterra’s global consumer and associated businesses.
Fonterra has increased its 2024/25 forecast Farmgate Milk Price from $10/kgMS to $10.15/kgMS.
It took a stint at university to remind Otago dairy farmer Megan Morrison that being stuck in a classroom was not for her.
Farmer lobby group Federated Farmers has announced it is supporting a new Member’s Bill which it says could bring clarity to New Zealand farmers and save millions in legal costs.
DairyNZ has announced the date for its upcoming Milksolids Levy vote.