Fonterra Whareroa sets cheese record, wins top award
Fonterra Whareroa wrapped up a successful season with a record-breaking cheese production volume and several gongs at the co-op's annual Best Site Cup awards.
Fonterra's revamp of its struggling Australian business continues with the impending sale of yoghurt and dairy desserts range.
Last month the co-op signed a sale agreement with Parmalat Australia; regulatory approvals are expected by June this year.
The sale of the Australian yoghurt and dairy desserts business, which includes manufacturing sites at Tamar Valley and Echuca, and the Australian yoghurt and dairy dessert brands, is part of a plan to return Fonterra's Australian business to strong and sustainable profitability, it says.
In its 2015 annual report Fonterra said that lower returns from Australian dairy desserts and yoghurt units had affected volume growth in its consumer and food service business.
However, Tamar Valley yoghurt sales were up 62% last year. Fonterra bought Tasmania-based Tamar Valley in November 2013.
Fonterra managing director Oceania Judith Swales says the co-op is committed to the Australian dairy industry and its retail business, and the sale is intended to lock in its competitive position in the Australian consumer market.
"We will continue investing in programs and innovation that support our market-leading brands in key retail categories, including Western Star butter and Perfect Italiano, Mainland and Bega cheeses, Anchor cream and fresh milk.
"Divesting the yoghurt and dairy desserts business will allow us to focus on what we do best, so we can continue [paying] a competitive milk price to our suppliers, benefits to our customers, innovative dairy foods to our consumers and improved returns to our farmer shareholders and unit holders," says Swales.
All Fonterra's Echuca and Tamar Valley employees in the yoghurt and dairy dessert business have received offers of employment from Parmalat.
Fonterra recently announced other major changes to turn around its ailing Australian business.
It is spending A$120 million to rebuild its factory in Stanhope, northern Victoria, as a primary cheese making plant with 50% extra capacity. The co-op sold 9% of its holding in Bega Cheese and will spend the cash on the Stanhope cheese plant.
It also announced plans with Bellamy's Australia Ltd and China's Beingmate Baby and Child Food Company Ltd that offer growth prospects in nutritional volume from Fonterra Australia.
A multi-million dollar beverages plant was commissioned at its Cobden facility in western Victoria to service a 10 year partnership with Woolworths and its largest global brand, Anchor, was launched in Australia.
Chief executive Theo Spierings says these changes result from a plan to get better retruns from the Australian business.
"We are focusing on areas where we can win in a highly competitive market, and that means optimising our product mix and streamlining operations to match, and investing in higher value-add products that will deliver the best returns for our farmer shareholders and unit holders.
"Australia is our largest milk pool outside New Zealand, and is an integral part of our multi-hub strategy. Our Australian operations have particular ingredient strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses. As a key part of our multi-hub strategy, we are matching these strengths with the opportunities across our 100 markets," says Spierings.
OPINION: Ministry for Primary Industries' situation outlook for primary industries report (SOPI) makes impressive reading.
Sheep and beef farmers Matt and Kristin Churchward say using artificial intelligence (AI) to spread fertiliser on their sprawling 630ha farm is a game changer for their business.
Commercial fruit and vegetable growers are being encouraged to cast their votes in the Horticulture New Zealand (HortNZ) board directors' election.
A unique discovery by a Palmerston North science company, Biolumic, looks set to revolutionise the value and potential of ryegrass and the secret is the application of ultraviolet (UV) light.
A New Zealand company is redefining the global collagen game by turning New Zealand sheepskin into a world-class health product.
With further extreme weather on the way, ANZ Bank is encouraging farmers and business owners impacted by the recent extreme weather and flooding to seek support if they need it.
OPINION: Dust ups between rural media and PR types aren't unheard of but also aren't common, given part of the…
OPINION: The Hound hears from his canine pals in Southland that an individual's derogatory remarks on social media have left…