Suitors line up
OPINION: As Fonterra's divestment of its Oceania and global consumer businesses progresses, clear contenders are emerging.
Asked if Jersey farmers should start breeding for A2 milk – achieveable within five years in Jerseys but at a price in genetic diversity – Fonterra chairman John Wilson advises, “select for the animals which would give the best genetic gain – full stop”.
“There is nothing wrong with A1 milk, never has been, never will be based on all the science we have seen,” says Wilson.
“If you go back to the decisions our predecessors made on A1 versus A2 – to simplify it right down – the science hasn’t changed. We have seen numerous studies but we haven’t seen conclusive evidence anywhere or a case made that A2 milk is better than A1 milk.
“Trials with some people with more sensitive stomachs show they may benefi from A2 over A1 milk, but the science is inconclusive.
“We have seen an absolute change in global dairy markets where consumers and consumer preferences change very quickly; they can be influenced by non-science claims…. and by opinion leaders, for example.
“That reflects the good job A2 has done in positioning their brand. We have decided after discussion to go into a licence and or a royalty arrangement with A2 with some products in some markets.”
Fonterra management is analysing where demand will be in those markets and the products on which it has come to an agreement with A2.
“When we have come to a view on where demand should be, then we will go to farmers alongside those plants where we believe we can most efficiently produce whatever that product is.
“And then we will price that milk accordingly.
“But the whole idea is the benefits will flow also across the whole cooperative.”
Wilson believes farmers should continue making breeding decisions based on the genetics that will give them the most overall gain across their business.
He personally won’t be selecting A2 over A1 because of all the science he sees.
“There is no less demand for A1 milk; what we are seeing in some markets is a niche opportunity for A2. Farmers need to make their own decisions and we will let farmers know, as soon as we have market demand-driven information, in certain pockets around the countryside.”
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
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