Strong growth for Yili's NZ operations
Chinese dairy giant Yili Group says its New Zealand operations are on track for strong revenue growth in 2025 after recording significant year-on-year growth for the first half of the year.
Westland Milk Products' board is working to convince farmers to vote in favour of its sale to Chinese dairy giant Yili.
Within 24 hours of signing a deal with Yili, Westland Milk Products chairman Pete Morrison was back on the West Coast talking to farmer shareholders.
Morrison says the Westland board members were keen to talk to farmers “as fast as we could and explain the deal”.
Yili, which owns Oceania Dairy in South Canterbury, will pay $588 million for Westland Milk at $3.41/share. Westland’s farmers paid $1.50 per share.
Morrison was accompanied to Auckland for the signing by deputy chair Katie Milne and board members Andrew MacPherson and Brent Taylor.
After returning from Auckland, the board held seven pocket meetings with farmer shareholders on the West Coast and in Christchurch.
Morrison says more meeting are planned in coming months; farmer shareholders will vote on the deal at a special general meeting early July.
“The board believes this is a very good deal; farmers will now think about it and then vote on the deal,” he told Rural News.
He admitted that some shareholders were dismayed by the prospect of a proud New Zealnd co-op disappearing.
“It’s a big deal for our farmers and the dairy industry throughout NZ.
For the deal to pass, at least 50% of Westland’s 350 farmer shareholders must vote, with 75% in favour.
ili has guaranteed to collect milk and pay a competitive payout of a minimum of the Fonterra farmgate milk price for 10 seasons from the season commencing August 1, 2019.
A supplier committee of five representatives from existing Westland suppliers and five representatives from Westland under the new ownership will be formed to maintain communications and transparency between existing Westland suppliers and Westland.
Morrison says the board was looking for a guaranteed milk price, guaranteed milk pick-up and maximum value for existing shares in Westland.
He says Westland shareholders know they haven’t been receiving a competitive milk price for several years.
“Farmers on the West Coast need a really competitive payout for their own survival.”
As an independent review of the National Pest Management Plan for TB finds the goal of complete eradication by 2055 is still valide, feedback is being sought on how to finish the job.
Beef + Lamb New Zealand has launched an AI-powered digital assistant to help farmers using the B+LNZ Knowledge Hub to create tailored answers and resources for their farming businesses.
A tiny organism from the arid mountains of mainland Greece is facilitating a new way of growing healthier animals on farms across New Zealand.
Alliance has announced a series of capital raise roadshow event, starting on 29 September in Tuatapere, Southland.
OPINION: Everyone wants to go to heaven, but nobody wants to die.
State farmer Pāmu (Landcorp) has announced a new equity partnership in an effort to support pathways to farm ownership for livestock farm operators.
OPINION: For years, the ironically named Dr Mike Joy has used his position at Victoria University to wage an activist-style…
OPINION: A mate of yours truly has had an absolute gutsful of the activist group SAFE.