Lactalis in front to acquire Fonterra’s Australian dairy assets after ACCC clearance
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Fonterra will introduce an independent organic milk price linked to market returns for organic products, prompted by the success of that business.
From June 2016, organic milk payments will reflect the performance of the organics business. Organic farmers currently receive a fixed premium together with the conventional farmgate milk price for their organic milk supply.
Organic farmers can choose to move to the new payment approach or stay under the existing payment system.
At a meeting with organic farmers this week, Craig Deadman, Fonterra's global business manager - Organics, told farmers that paying market-linked prices for organic milk recognises the improved performance of the organic business, which reflects greater demand and stable prices for global organic milk products.
"Organic milk products provide high-value returns for the cooperative. We want to grow our organics business over the long term. Linking the organic milk price to organic market returns will help us to increase the number of organic farmers."
Deadman says historically market prices for organic milk products have been less volatile than conventional milk price products and the organic milk price has the potential to provide farmers more certainty in operating their organics businesses.
He says the move also recognises the effort and commitment of Fonterra organic farmers to producing premium organic milk.
Deadman says Fonterra has undertaken a series of measures recently to enhance the attractiveness of organic farming for current and prospective organic farmers.
"A recent initiative is the establishment of the Organic Farmers Advisory Group, a representative group of organic farmers who provide an additional feedback channel between organic farmers and Fonterra. They also had provided feedback on the new organic pricing system," says Deadman.
Global trade wars and uncertain tariff regimes could play into the hands of many New Zealand exporters, according to Gareth Coleman ANZ’s Head of Trade & Supply Chain.
The long running trade dispute between NZ and Canada appears to be over.
Herd improvement company LIC has ended the 2024-25 financial year in a strong position - debt-free and almost quadrupling its net profit.
There's been widespread support from the primary sector for the Government's move to put the brakes on local authorities to do any more work on planning changes ahead of major changes to the Resource Management Act (RMA).
Rural health advocates say the Government's decision to establish a new medical school at the University of Waikato augurs well for the rural sector.
People affected by the recent two severe flood events in the Tasman district are weary and exhausted trying to deal with the devastation on their farms and orchards, according to the head of the Rural Support Trust (RST) in the region.
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