Winston Peters calls Fonterra vote result 'utter madness'
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
FONTERRA FARMERS are welcoming the co-op's infant formula joint venture in China.
Fonterra Shareholders Council chairman Ian Brown says the partnership with Beingmate is an important step to increasing access to the high value Chinese nutritional powders market and, in doing so, generating greater profit and returns for Fonterra Farmers.
"China is our number one market and demand for our products continues to grow there.
"Having recently visited the China market it's difficult to overstate the importance of having a local presence and with Beingmate's established networks and relationships this joint venture will enable us to move further towards consumer products that add margin over the value of milk.
"The announcements provide our co-op the opportunity to extract maximum value from every drop of milk we produce through the best use of our global assets."
Fonterra is teaming up with leading Chinese infant food manufacturer Beingmate intend to form a global partnership that will help meet China's growing demand for infant formula.
The partnership will create a fully integrated global supply chain from the farm gate direct to China's consumers, using Fonterra's milk pools and manufacturing sites in New Zealand, Australia, and Europe; the partnership is intended to increase the volume and value of Fonterra's ingredients and branded products exported to China.
It will be achieved in two phases: Fonterra will shortly start the process to issue a partial tender offer to gain up to a 20% stake in Beingmate; after gaining regulatory approvals and Fonterra satisfactorily completing the partial tender offer, Fonterra and Beingmate will set up a joint venture to purchase Fonterra's Darnum plant in Australia and will establish a distribution agreement to sell Fonterra's Anmum brand in China.
Fonterra chief executive Theo Spierings says the partnership between two leading dairy nutrition companies will be a game changer that will provide a direct line into the infant formula market in China, which is the biggest growth story in paediatric nutrition in the world.
The partnership will also play a part in promoting leading product quality and safety standards in the infant formula market in China, participating in the ongoing development of the Chinese dairy industry, and supporting the development of Beingmate's business.
"By working together with Beingmate, we will strengthen our infant formula brand presence in China and link China to high quality ingredients from New Zealand, high value paediatric products made at Darnum in Australia, and whey specialty ingredients manufactured at our new plant in Heerenveen in the Netherlands and in alliance with Dairy Crest in the United Kingdom," says Spierings.
"We will also work with Beingmate to evaluate mutual investments in dairy farms in China."
Acclaimed fruit grower Dean Astill never imagined he would have achieved so much in the years since being named the first Young Horticulturist of the Year, 20 years ago.
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.

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