US remains important market - Fonterra
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
The growth of Australia’s dairy industry is now down to the two main players Fonterra and Saputo, says dairy analyst Steve Spencer.
At issue is the commitment of the two large players and how they can restore trust in the industry for farm investors and owners, he says.
The Australian Competition and Consumer Commission last week approved Saputo’s takeover of beleaguered co-op Murray Goulburn; the takeover when completed will leave no big dairy co-ops in Australia.
With MG in its fold, Canadian dairy giant Saputo will edge out Fonterra to become Australia’s largest dairy player.
The ACCC decision requires Saputo to sell the MG Koroit Plant in western Victoria.
Spencer, Fresh Agenda, told Dairy News he wasn’t surprised by the ACCC’s decision. For the Australian dairy industry, it means competition will not ease, he says.
“Another player will get a larger foothold with access to Koroit and its milk supply and there will be no dairy co-op in the future.”
Spencer noted that MG has been in a weak state for years.
“So the nature of processor-farmer relations, the market shares of milk intake and the product mix of the industry will evolve further.
“We’ve got a fair way to go before change is over. I’m not sure it means the industry will grow as a consequence of the loss of MG, but that depends on the commitment of the two large players and how they can restore trust in the industry for farm investors and owners.”
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
Trade and Agriculture Minister Todd McClay says New Zealand's trade interests are best served in a world where trade flows freely.
New Zealand's red meat sector says it is disappointed by the United States' decision to impose tariffs on New Zealand exports.
OPINION: Farmers nationwide will be rubbing their hands with glee at the latest news from the Government about the RMA reforms.
Holstein Friesian NZ and Link Livestock have agreed on a strategic partnership to provide HFNZ members with comprehensive services from one of New Zealand's most respected dairy men.
Rural retailer Farmlands has launched a new casual clothing range available across 42 stores nationwide and through its online store.
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.