Windfall Awaits New Zealand Farmers as Fonterra Eyes Asset Sales
New Zealand dairy farmers could be in for a big pay day if Fonterra Cooperative Group follows through on plans to exit its global consumer businesses. Auckland-based Fonterra, the world’s largest dairy exporter, is considering turning away from branded consumer products to concentrate on making more high-value ingredients derived from New Zealand milk that it…
Global demand for Dairy remains sluggish
Commodity markets have softened through March 2024 against a backdrop of slightly weaker global fundamentals. The dairy complex had staged a recent rally since the bottom of the market in Q3 2023. Nonetheless, all dairy products except butter were softer in March 2024 and remain at or below five-year averages. Rabobank expects dairy commodity prices…
Global dairy trade event moved slightly up by 0.5%
Global dairy price index moved up slightly. AMF and Cheddar were the front runner in pushing the index upwards. AMF has finally reached at par with Butter prices. Butter demand remained sluggish. Cheddar also took a big leap to close at USD 4143/MT.SMP has not yet reached a significant level to become attractive for Indian…
Fonterra pioneers dairy protein innovation for holistic health
The market for dairy proteins is diversifying and moving into the popular health and wellness categories, such as gut health and functional foods. Moreover, consumers and companies increasingly seek out offerings that address specific health needs and that are obtained through sustainable practices. At the same time, advancements in dairy protein technology, which previously focused…
New milk fridge tech could see dairy farmers cut costs and carbon
Replacing a gas-leaking milk chiller will cut a farm’s carbon footprint and bills, says a new partnership encouraging the upgrades. Fonterra hopes hundreds of its farmers will make the switch, lessening the planetary impact of its milk. To curb bacterial growth, raw milk must be rapidly chilled below 6C within hours of collection. However, many…
Fonterra increased dairy farmers milk price by 50c
Dairy giant Fonterra has raised its forecast milk price for farmer suppliers by 50 cents to an effective $7.25 per kilogram of milk solids. It’s the latest twist in what’s looking like a very up and down season for farmers. Just before the latest season started in June Fonterra gave an initial forecast of, in…
Global Dairy Trade auction: Third rise in a row lifts farmers’ spirits
Global Dairy Trade Event 341 concluded with the GDT Price Index up 4.4% Prices have risen yet again in the latest Global Dairy Trade auction held overnight, with a 4.4 per cent lift across the board – which will be well-received on farms across New Zealand as the season nears its peak. It is the third significant increase in a…
Welcome lift in global dairy prices, we’re not out of the woods yet
Whole milk powder prices gained 4.6% at the latest global auction but are 25% below the same time last year. The price of whole milk powder, which has the most impact on farmgate milk prices, gained for a second global auction, a welcome relief for many dairy farmers who will be struggling to break even…
Fonterra’s profit more than doubles on demand for dairy ingredients
New Zealand’s Fonterra Co-Operative Group (FCG.NZ) on Thursday reported a more than doubled annual profit on strong margins from its cheese and protein portfolio, and declared a higher final dividend, sending its shares higher. The world’s biggest dairy exporter also benefited from higher product pricing and strong demand for its dairy ingredients and foodservice channel. The company…
Why India is an important market for Fonterra
Fonterra’s,GM Trade Strategy & Stakeholder Affairs, Justine Arroll, has just returned from India as part of a New Zealand business delegation to the subcontinent. The Country Sport Breakfast’s, Brian Kelly, asked, “India is a big market for dairy, the country is also the largest milk producer in the world, where’s the opportunities for Fonterra?” “India…