What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
A team of 16 authorised China resellers of NZMP ingredients toured the dairy industry here recently.
Purchasing about a third of global contracted volume on the GDT auction platform, Fonterra's authorised resellers in China are an important part of the co-operative's ingredients business.
During the last week of November, Casey Thomas, vice president of New Zealand Milk Products (NZMP) Greater China, led representatives of 16 authorised resellers around a dairy farm, manufacturing site and Fonterra's headquarters in Auckland, showcasing what makes New Zealand milk special.
"We really wanted to bring them to New Zealand and show them the journey from the farm to the factory, spend some time at head office and for them to see where the magic starts that enables their businesses in China,” says Thomas who looks after the co-operative’s ingredients business in China.
Fonterra has built solid relationships over the years with the resellers, one of whom had purchased whole milk powder at all but one GDT event since the platform was established in 2008.
“This particular reseller had attended 343 out of 344 GDT events,” Thomas remarked.
Some of the biggest resellers have been working with Fonterra for more than 20 years. They play a key role in developing new sales channels and pipelines to create value for the co-op and bring some stability to the volatile dairy commodities market.
“Our authorised resellers are our critical partners.
“They work alongside our sales team to provide high quality services to our customers, support market insights and compliance, and expand our customer base,” says Thomas.
Fonterra’s main ingredients sold in China are whole milk powder, skim milk powder, cheese, probiotics and protein.
The ingredients are used to create in various products in China including drinking milk, infant formula, cheese powder and medical nutrition products.
“There are also some interesting applications like cheese powder, cheese lollipops and Chinese pastries like pork floss roll,” Thomas says.
China has long been a key market for Fonterra and the favourable margins in the ingredients channel, especially the cheese and protein portfolios, contributed to the co-op’s strong 2023 financial result.
OPINION: In politics, credibility is and should be big. It must surely rank higher than charisma, which is quite trite and superficial. Yet, voters nowadays are often wooed and influenced by how someone looks or talks at a superficial level. TV plays a huge role in this.
Farmers can spend less time on paperwork, thanks to a new data sharing agreement between DairyNZ’s DairyBase and LIC’s MINDA software.
Kaikōura families affected by July's severe storm have found a practical solution to a problem that's kept some children away from regular schooling for weeks: a washed-out section of Inland Kaikōura Road, which has stopped the local school bus from running its usual route.
Rural New Zealand is welcoming the Government’s recent package of rural healthcare initiatives.
Interest in agritech and production animal systems has prompted Massey University's School of Agriculture and the Environment to new majors to its popular animal science degree.
Ballance Agrinutrients chief executive Kelvin Wickham says despite a tough year, he is pleased the business has returned to profit.