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.
The programme marks a milestone for New Zealand's beef-on-dairy scene, bringing together two major players to create a premium offering based on high-quality genetics.
Designed to deliver value across the supply chain, it's underpinned by a key customer - FMG Global, strategic sourcing partner for McDonald's - looking to support industry-led efforts to capture the opportunity presented by non-replacement dairy calves.
The programme offers a list of high-performance beef sires selected for easy calving, moderate gestation length and high-growth beef-on-dairy calves - ideal for use in dairy cows.
Using these sires for targeted non-replacement matings also allows farmers to breed herd replacements from their best cows, driving faster genetic gain, says Anne Douglas, group director of Fonterra Farm Source.
"This initiative gives farmers a practical, evidence-based sire list that helps remove uncertainty and makes it much simpler to capture the beef-on-dairy opportunity," she says.
"As farmers finalise their mating plans for the season ahead, we'd encourage them to explore the opportunities available through this programme and consider where premium beef-on-dairy could fit within their breeding strategy."
Integrated beef-on-dairy value chains are becoming more established internationally, says Greg McSkimming, head of agribusiness at Silver Fern Farms.
"The biggest opportunity for New Zealand is creating strong alignment across the supply chain, so decisions on farm connect more directly to customer demand and deliver consistency at scale," he says.
“Beef-on-dairy is one of the most practical ways dairy farmers can create additional value from non-replacement calves. The key is producing animals the rest of the value chain is actively seeking. When genetics, rearing and finishing are better aligned, it improves predictability and gives farmers more confidence they’re breeding calves that will deliver what the market wants.”
The programme’s approach is about aligning genetics and on-farm decisions with smarter supply chain practices, says Connor FitzGerald, chief commercial officer at FMG Global.
“Small adjustments in decision-making around genetics, combined with improved supply chain processes can deliver outcomes that work for the dairy farmer, the calfrearer, the backgrounder and/or finisher, as well as the meat processor,” he says.
“It really is a scenario whereby, with the right collaboration, everyone wins.”
Sire List
The programme's recommended sires are top-performing beef bulls selected to work within dairy systems and produce calves the beef supply chain is actively seeking.
The chosen bulls meet four practical requirements:
- Easy calving - to protect dairy cow performance and reduce risk at calving.
- Moderate gestation length - to ensure cows calve on time.
- Colour-marking - to aid in visual identification of calves.
- Growth potential - to provide value to rearers and finishers, locking in ongoing demand for calves.
Selection has been guided by the latest Beef + Lamb New Zealand tools and information, to ensure calves hit the mark for all parts of the supply chain.
The sires are available through LIC, CRV and GENEZ and are intended to be used strategically for non-replacement matings, helping farmers protect the pathway for high-performing dairy replacements.
Branded eartags will be available for Fonterra suppliers that use these sires to create a distinct line of calves within their herd; they won’t be available to farmers running the nominated bulls alongside other bulls of the same breed, ensuring tags go into the right calves. Beef finishers can use the tags as an indicator of growth potential and, if processed through Silver Fern Farms’ programme, earn a premium.
