"Our" business?
OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it both ways when it comes to the success of NZ's dairy industry.
Fonterra’s disastrous investment in Chinese baby food company, Beingmate could soon come to an end.
The co-op is selling its stake in portions after failing to buy a buyer for the entire shareholding.
Subject to demand for the shares, under the Shenzhen Stock Exchange market rules it is only possible to sell up to 1% every 90 days directly on the exchange, or sell up to 2% in a single block every 90 days. Trades greater than 5% can be made to an individual party in an off-market transaction.
Fonterra chief executive Miles Hurrell says from here, “it’s about making pragmatic decisions to get the best outcome for the co-op from our holding in Beingmate.”
In 2015 the dairy giant invested $750 million in the infant formula firm, however, the investment failed to live up to expectations.In 2017 it wrote off the investment to the tune of $439m. Fonterra paid $3.92/share: based on current trading, the shares are worth only $1.08 each.
Fonterra also wound back its partnership with Beingmate: bringing distribution of its popular Anmum baby formula back in-house and ending the Australian joint venture involving its Darnum plant.
Fonterra still has a multi-year agreement with Beingmate to sell ingredients.
Hurrell says the decision to sell Beingmate shares is part of Fonterra’s three-point plan to turn around the business.
“One aspect of this plan was to take stock of our business. As part of this, we have re-evaluated every investment, major asset and partnership to ensure they still meet the cooperative’s needs today.
“This started with a strategic review of our relationship with Beingmate, which has been disappointing.”
Hurrell reiterated Fonterra’s commitment to the Chinese market.
“China will always be one of our most important markets. We’ve got a strong business there and are still very much focused on the areas in China where we can succeed.”
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.
From 1 October, new livestock movement restrictions will be introduced in parts of Central Otago dealing with infected possums spreading bovine TB to livestock.
Phoebe Scherer, a technical manager from the Bay of Plenty, has won the 2025 Young Grower of the Year national title.
The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.
Award-winning boutique cheese company, Cranky Goat Ltd has gone into voluntary liquidation.
OPINION: Westland Milk may have won the contract to supply butter to Costco NZ but Open Country Dairy is having…
OPINION: The Gene Technology Bill has divided the farming community with strong arguments on both the pros and cons of…