Fonterra slashes forecast milk price, again
Fonterra has slashed another 50c off its milk price forecast as global milk flows shows no sign of easing.
The battle for milk supply in Waikato is heating up with Canterbury processor Synlait entering the region.
It will build a $280 million powder plant at Pokeno, north Waikato, and is now encouraging potential Waikato suppliers to register their interest to avoid missing out.
Synlait’s project means three new milk plants will be commissioned in Waikato over the next 24 months, all three plants seeking milk at Fonterra’s doorstep.
Open Country Dairy’s new plant is nearing completion. Its chief executive Steve Koekemoer told suppliers last month the Horotiu factory build is progressing very well and interest in milk supply has been strong.
Happy Valley Dairy has resource consent for a $230m infant formula plant in Otorohanga. Its founder and director Randolph van der Burgh says farmers around the factory will be offered milk supply contracts once construction starts.
“We expect some farmers to switch supply to us; others may want to stay with Fonterra… it’s entirely up to each farmer,” he says.
Waikato Federated Farmers president Andrew McGiven says the new plants prove the effectiveness of the Dairy Industry Restructuring Act (DIRA), which led to the formation of Fonterra.
“It is ensuring that farm gate competition for milk supply is alive and well,” he says.
McGiven agrees that Fonterra suppliers in Waikato will be targeted by the independent processors. “Obviously Fonterra will have to compete to meet this competition,” he says.
“Congratulations to Synlait for taking the risk in developing a factory away from their supplier base... but they have experience in doing that obviously.”
Pokeno, the location for Synlait’s second nutritional powder plant, already has an infant formula plant, owned by Yashili.
“Our forecast increase in customer demand for infant formula products means we need to add additional powder manufacturing capacity as soon as we can,” says Graeme Milne, Synlait chairman.
Chief executive John Penno says the commissioning date will be known once consents and approvals are obtained.
The Push-Up Challenge, an event which combines mental health and fitness, is set to launch in New Zealand in 2026.
Last month's Agritechnica event led to a wide group of manufacturers celebrating successes when the 2026 Tractor of the Year Competition winners, selected by a panel of European journalists, were announced in Hanover Germany.
According to the latest Federated Farmers banking survey, farmers are more satisfied with their bank and less under pressure, however, the sector is well short of confidence levels seen last decade.
Farmer confidence has taken a slight dip according to the final Rabobank rural confidence survey for the year.
Former Agriculture Minister and Otaki farmer Nathan Guy has been appointed New Zealand’s Special Agricultural Trade Envoy (SATE).
Alliance Group has commissioned a new heat pump system at its Mataura processing plant in Southland.

OPINION: The release of the Natural Environment Bill and Planning Bill to replace the Resource Management Act is a red-letter day…
OPINION: Federated Farmers has launched a new campaign, swapping ‘The Twelve Days of Christmas’ for ‘The Twelve Pests of Christmas’ to…