US remains important market - Fonterra
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
Fonterra Australia and Bellamy's Australia Limited are entering a five year, multi-million dollar strategic agreement to manufacture a range of new baby nutritional powders.
Fonterra managing director Oceania Judith Swales says the announcement is part of Fonterra's transformation of its Australian business.
"This is our strategy in action for Australia where we focus on the areas we can win in a highly competitive market to deliver the best returns," says Swales.
"We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant move towards full capacity.
"Our Australian business has particular ingredients strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses; and today's announcement with Bellamy's Australia - one of the fastest growing infant formula companies - reaffirms our strength in nutritionals.
"The Darnum plant is a leading nutritionals plant in Fonterra's global network. Leveraging our Fonterra Research and Development Centre in Palmerston North, the largest dairy innovation centre in the southern hemisphere, we will bring innovation to the Darnum plant and the nutritionals market to capture growing demand.
Bellamy's is one of the fastest growing infant formula companies with strong brand recognition and expertise in the organic ingredient supply chain. Bellamy's has experienced continued growth over many years, and financial year 2014-15 has been exceptional, achieving revenue growth of 156% from the year prior.* Formula comprises 88% of Bellamy's sales.*
"The proposed multi-million dollar strategic agreement will help support the growth of Bellamy's Organic in Australia and abroad, and builds on our strong current relationship."
"We are also nearing the finalisation of the Darnum joint venture with Beingmate Baby and Child Food Company Ltd following the recent formal approval by Beingmate's Board and shareholders," says Swales.
Swales says the cooperative had a clear plan to return its Australian business to strong and sustainable profitability.
Fonterra and Bellamy's will work to finalise the proposed arrangements by the end of the year, with the agreement commencing in 2016.
The chair of New Zealand's biggest grower, packer and exporter of apples says it's been a bumper season.
The Commerce Commission's move to investigate commitments made by major banks under the Net Zero Banking Alliance is being hailed by farming leaders.
Horticultural prices are set to remain elevated this year, reflecting the balance between demand in key export markets and an increase in supply.
The drought breaking rain in Northland was greeted with much joy and delight by the more than 200 people who turned out last week for a field day at the farm of Whangaroa Ngaiotonga Trust near the east coast settlement of Whangaruru, about 70km from Whangarei.
Federated Farmers supports a review of the current genetic technology legislation but insists that a farmer’s right to either choose or reject it must be protected.
New Zealand’s top business leaders are urging the US Administration to review “unjustified and discriminatory tariffs” imposed on Kiwi exporters.
OPINION: Is it the beginning of the end for Greenpeace?
OPINION: The good times felt across the dairy sector weren't lost at last week's Beef + Lamb NZ annual meeting.