Battle for milk
OPINION: Fonterra may be on the verge of selling its consumer business in New Zealand, but the co-operative is not keen on giving any ground to its competitors in the country.
Rising global demand for dairy and fruit beverages has prompted Fonterra to team up with a Hawke’s Bay company to make new products.
Fonterra Brands New Zealand and Apollo Foods, a start-up company, will install plant at the Apollo premises in Whakatu, Hawke’s Bay, to make fruit and dairy beverages for the NZ market.
Apollo’s beverage filling technology will enable it to make a range of containers and fill them with different products on the one production line.
Good quality control will retain the products’ fresh taste, allowing a long shelf life, hence retailers will be able to stock an extensive range.
Fonterra Brands NZ general manager Leon Clement says the rising global demand for dairy and fruit beverages is a great opportunity.
“As high-quality drinks play a bigger role in consumers’ diets, NZ companies have opportunities to add value [and create] future brands.”
The Apollo Foods plant will have capacity for millions of litres of beverages each year and will enable the companies to lead in their respective categories.
Ross Beaton, managing director at Apollo Foods managing director Ross Beaton applauds the deal.
Hastings mayor Sandra Hazlehurst says the deal results from 18 months effort by Hastings District Council and Apollo Foods.
“It cements our beautiful district as a leader in food production,” she says.
The plant was commissioned last month and is now making Mammoth flavoured, low-sugar milk with a shelf life of six months.
Other new beverages will follow.
OPINION: The past few weeks have been tough on farms across the North Island: floods and storms have caused damage and disruption to families and businesses.
European dairy giant Arla Foods celebrated its 25th anniversary as a cross-border, farmer-owned co-operative with a solid half-year result.
The sale of Fonterra’s global consumer and related businesses is expected to be completed within two months.
Fonterra is boosting its butter production capacity to meet growing demand.
For the most part, dairy farmers in the Waikato, Bay of Plenty, Tairawhiti and the Manawatu appear to have not been too badly affected by recent storms across the upper North Island.
South Island dairy production is up on last year despite an unusually wet, dull and stormy summer, says DairyNZ lower South Island regional manager Jared Stockman.
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