NZ Dairy Structure: One Major Firm, Strong Follower & Niche Players
In his recent commentary, agribusiness analyst Allan Barber applauds the evolution of the New Zealand dairy sector into a balanced market structure: one dominant processing company, a credible second-tier follower, and several specialist firms each focused on narrow but successful product ranges. He points out that the leading co-operative Fonterra Co‑operative Group Ltd still controls…
NZ Dairy War: Fonterra’s Milk Share Slipping Despite Profit Surge
Despite a record payout and $1.1B profit, the co-op’s share of the New Zealand milk pool is shrinking as independent processors intensify competition. Despite reporting a massive profit after tax of $1.1 billion and a record $10.16/kgMS milk price for the last season, Fonterra Co-operative Group is struggling to defend its dominant market position. The dairy giant confirmed it netted a higher volume…
Fonterra’s Strategic Pivot: The Future of Dairy
A landmark sale of its consumer brands signals a focused move towards high-value B2B channels, a strategy that could reshape the global agribusiness sector. Fonterra is making a major strategic shift by selling its consumer business, including the $4.22 billion agreement with Lactalis. The article presents this decision as a key move to focus on what the company does…
Fonterra’s Brand Sale: Short-Term Gain, Long-Term Loss?
Fonterra’s decision to sell its brands business—home to household names like Anchor, Mainland, and Kapiti—to French-owned Lactalis for NZ$3.85 billion has sparked intense debate. While the deal promises a windfall for farmer-owners amid strong dairy prices, critics argue it represents a short-term tactical win but a long-term strategic failure. When Fonterra was formed, the vision…
Fonterra Ditches A2, Goes All In on Lactose-Free
A Major Agribusiness Pivot Sees Fonterra Discontinue Its A2 Milk Line to Focus on New Zealand’s Fastest-Growing Dairy Segment. In a strategic move set to reshape a key segment of the agribusiness market, New Zealand dairy giant Fonterra has announced the discontinuation of its A2 milk range. The cooperative’s decision, confirmed in a notice, is a clear…
Fonterra lifts FY25 forecast Farmgate Milk Price
Fonterra Co-operative Group Ltd has today increased the 2024/25 season forecast Farmgate Milk Price from $10.00 per kgMS to $10.15 per kgMS, with the range narrowing from $9.70 – $10.30 per kgMS to $10.10 – $10.20 per kgMS. CEO Miles Hurrell says “as we close out the FY25 year, I’m pleased to be in the…
Fonterra agrees sale of Consumer businesses to Lactalis
Fonterra agrees sale of Consumer and associated businesses to Lactalis Fonterra Co-operative Group Ltd today announced it has agreed the sale of its global Consumer and associated businesses to Lactalis for $3.845 billion, subject to certain customary financial adjustments and conditions including approval by farmer shareholders, separating the businesses being sold from Fonterra, and receipt…
Fonterra meeting functional dairy ingredients demands of North Asia
In the dynamic markets of Japan and South Korea, Fonterra has emerged as a crucial player in the evolving world of functional dairy ingredients. These countries represent a unique combination of demographic shifts, health consciousness and culinary innovation that is transforming the dairy landscape. With Japan boasting more than 90,000 centenarians and South Korea projected…
ACCC approves merger of dairy giants Lactalis and Fonterra
The Australian Competition and Consumer Commission (ACCC) has approved a merger between the country’s two largest dairy processing companies, Lactalis and Fonterra. The planned takeover of Fonterra’s consumer, dairy ingredients and food service businesses by French group Lactalis would create a massive dairy company in Australia. Dairy company Lactalis has been given approval by the…
Analysts look for omens as GDT plummets
July, August falls widely expected to follow steep drop of July 2. Global Dairy Trade prices are widely expected to fall during July and August following the 6.9% drop in the GDT price index in the July 2 auction, dairy industry analysts say. A further 5% fall in whole milk powder prices, which is likely to…