Fonterra's global ranking set to dip
Fonterra has climbed three places to number six on RaboResearch's annual Global Dairy Top 20 report.
Chinese-owned milk processor Westland Milk Products is building a new $70 million lactoferrin plant at its Hokitika site.
The new plant will secure Westland Milk as one of the world's leading producers of highly prized bioactive ingredients, the company says.
The investment was announced last week by Westland's resident director, Zhiqiang Li, and chief executive Richard Wyeth.
Westland is owned by the Yili Group, the fifth largest dairy company in the world.
The investment will more than treble production capacity of the multifunctional protein at Hokitika.
The plant upgrade follows a $40m investment which doubled consumer butter production at Hokitika, increasing global sales of the prize-winning product upon completion in 2021, including ranging of Westgold butter in US retail giant Walmart.
Lactoferrin is a minor protein in milk with growing international demand across a variety of nutritional categories because of its reported health benefits.
Li says the investment signalled Westland's commitment to take the lead in the high-value bioactive dairy ingredients sector.
"Westland is the only New Zealand commercial manufacturer of bovine colostrum powder and this move will place us in the top three leading global companies in the lactoferrin category, with a market share of approximately 10%," Li says.
"We were one of the first to market with this highly specialised protein ingredient, and over the 20 year have established a reputation as a manufacturer of a product of exceptional quality."
Wyeth says the investment extends Westland's focus on high-value consumer goods and specialised ingredients to leverage its growing international reputation as a producer of premium dairy products and ingredients.
"We cannot improve on the incredible quality of the natural product our farmers produce day after day, but we can ensure that we extract maximum value for that product, and our lactoferrin strategy is a critical part of that," Wyeth says.
"Our bioactive ingredients innovation pipeline is well advanced, and we're excited to be a step closer to bringing these concepts to commercialisation."
Global demand for lactoferrin in the last five years has outstripped Westland's production capacity with demand expected to continue to increase.
Construction of the new plant, which significantly increases production capacity at Hokitika from a current 20 metric tonne per annum, is expected to take 16 months. Construction is currently forecast for the first half of 2024.
With the addiction of spray-dried lactorferrin to complement Westland's freeze-dried lactoferrin range, Westland will be one of the only lactoferrin manufacturers in the world capable of producing both formats on the one site, a unique advantage for Westland's customers.
National Lamb Day, the annual celebration honouring New Zealand’s history of lamb production, could see a boost in 2025 as rural insurer FMG and Rabobank sign on as principal partners.
The East Coast Farming Expo is playing host to a quad of ‘female warriors’ (wahine toa) who will give an in-depth insight into the opportunities and successes the primary industries offer women.
New Zealand Food Safety (NZFS) is sharing simple food safety tips for Kiwis to follow over the summer.
Beef produced from cattle from New Zealand's dairy sector could provide reductions in greenhouse gas emissions of up to 48, compared to the average for beef cattle, a new study by AgResearch has found.
The Rabobank Rural Confidence Survey found farmers' expectations for their own business operations had also improved, with the net reading on this measure lifting to +37% from +19% previously.
Confidence is flowing back into the farming sector on the back of higher dairy and meat prices, easing interest rates and a more farmer-friendly regulatory environment.
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