Fonterra unveils divestment plan
Fonterra is exploring full or partial divestment options for its global Consumer business, as well as its integrated businesses Fonterra Oceania and Fonterra Sri Lanka.
The growth of Australia’s dairy industry is now down to the two main players Fonterra and Saputo, says dairy analyst Steve Spencer.
At issue is the commitment of the two large players and how they can restore trust in the industry for farm investors and owners, he says.
The Australian Competition and Consumer Commission last week approved Saputo’s takeover of beleaguered co-op Murray Goulburn; the takeover when completed will leave no big dairy co-ops in Australia.
With MG in its fold, Canadian dairy giant Saputo will edge out Fonterra to become Australia’s largest dairy player.
The ACCC decision requires Saputo to sell the MG Koroit Plant in western Victoria.
Spencer, Fresh Agenda, told Dairy News he wasn’t surprised by the ACCC’s decision. For the Australian dairy industry, it means competition will not ease, he says.
“Another player will get a larger foothold with access to Koroit and its milk supply and there will be no dairy co-op in the future.”
Spencer noted that MG has been in a weak state for years.
“So the nature of processor-farmer relations, the market shares of milk intake and the product mix of the industry will evolve further.
“We’ve got a fair way to go before change is over. I’m not sure it means the industry will grow as a consequence of the loss of MG, but that depends on the commitment of the two large players and how they can restore trust in the industry for farm investors and owners.”
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
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