Divestment means Fonterra can focus on its strengths
OPINION: Fonterra's board has certainly presented us, as shareholders, with a major issue to consider.
New Zealand milk will be used for a new certified organic grass-fed infant formula offering by Bubs Australia Ltd.
Beingmate will be the distributor in China but in a partnership agreement with Bubs, not Fonterra.
Bubs says itwill be the first company to offer Australian made certified organic grass-fed infant formula, after entering into a supply agreement with Fonterra Australia to produce Bubs Organic new infant formula range.
Fonterra will supply Bubs with organic milk powder, sourced from its organic milk pool in New Zealand, which will be manufactured at its plant in Darnum, Victoria.
The conditional supply agreement runs for an initial term until July 31, 2021.
The Bubs Organic new range of infant formula will be available in Chemist Warehouse pharmacies throughout Australia within three months. Export to China’s cross-border eCommerce channel will follow shortly afterwards.
Bubs recently bought Australia Deloraine Dairy, an infant formula plant that is approved by CNCA (China’s certifying authority). Pending approval the new range of formula may be physically distributed to China’s Mother and Baby stores.
Kristy Carr, Bubs Australia founder and chief executive says in a statement: “Premium product offerings are the fastest growing segment of the infant formula category, and we are now able to offer two nutritional options – organic and goat, to suit individual dietary needs. This will tap into the global consumer trend towards natural, sustainable and organic food production.
“Bubs is a key player in the goat dairy infant formula sector in Australia and has made inroads into China. It can now offer an Australian made certified organic grass-fed infant formula with both prebiotics and probiotics, in addition to Omega-3 DHA and Omega-6 ARA.”
Bubs told the Australian stock exchange that it has agreements with Beingmate, Alibaba’s Tmall and Chemist Warehouse.
The joint venture with Beingmate is to distribute and promote Bubs goat and organic cow milk infant formula “throughout Beingmate’s network covering 30,000 Mother and Baby stories in China”.
Bubs Australia holds a 49% interest in the joint venture which will run for an initial term of 10 years.
Listed rural trader PGG Wrightson chair Garry Moore and his deputy Sarah Brown have been voted out by shareholders.
It was love that first led Leah Prankerd to dairying.
DairyNZ has appointed Dr Jenny Jago to a newly created leadership team role - science partnerships & impact advisor - as part of a strategic refresh of the organisation's science leadership.
OPINION: Public pressure has led to Canterbury Police rightly rolling back its proposed restructure that would have seen several rural police stations closed in favour of centralised hubs.
When I interview Rachel Cox, she is driving - on her way to her next meeting.
With Fonterra's UHT plant at its Edendale site less than a year from completion, demand continues to grow for products the plant will produce, such as Anchor Whipping Cream.
OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.
OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.