All eyes on NZ milk supply
All eyes are on milk production in New Zealand and its impact on global dairy prices in the coming months.
After years of losses, Fonterra's two wholly owned China farming hubs in Ying and Yutian have been sold.
The $552 million deal is an important milestone for Fonterra following its strategic refresh.
The co-operative announced in October 2020 the sale of the farms to Inner Mongolia Youran Dairy Co, subject to anti-trust clearance and other regulatory approvals in China.
Fonterra says those approvals have now been received. The co-op poured around a billion dollars into the farms. However, the farms failed to provide a return to farmer shareholders.
Fonterra chief executive Miles Hurrell says the co-op has contributed to the development of the Chinese dairy industry by establishing these farms.
"We're pleased to now hand ownership over to Youran for the next phase of development.
"The China market is fast moving and inspires us to keep innovating. Our China team will continue with their focus on creating value from our New Zealand farmers' milk through new products, applications and close partnerships with our customers.
"As we've seen from our recent FY21 interim financial results, our China business is performing very well, underpinned by strong demand for New Zealand dairy driven by our team on the ground.
"With these foundations, we are well placed to continue to grow our Greater China Food service, Consumer and Ingredients businesses," says Hurrell.
The completion of the sale of Fonterra's 85% interest in its Hangu farm to minority shareholder Beijing Sanyuan Venture Capital Co is progressing and is expected to be completed this financial year.
'Common sense' cuts to government red tape will make it easier for New Zealand to deliver safe food to more markets.
Balclutha farmer Renae Martin remembers the moment she fell in love with cows.
Academic freedom is a privilege and it's put at risk when people abuse it.
All eyes are on milk production in New Zealand and its impact on global dairy prices in the coming months.
Claims that some Southland farmers were invoiced up to $4000 for winter grazing compliance checks despite not breaching rules are being rejected by Environment Southland.
According to the most recent Rabobank Rural Confidence Survey, farmer confidence has inched higher, reaching its second highest reading in the last decade.
OPINION: The war of words between Southland farmers and Environment Southland over winter grazing inspections reflects a deep lack of trust…
OPINION: Milking It understands a formal disciplinary process is being conducted by Victoria University of Wellington on what one of…