Executive director of the Global Dairy Platform, Donald Moore, recently told an Australian audience that the biggest future threat to the world dairy industry could be synthetic milk.
FONTERRA Australia has lifted its average farmgate milk price to $5.20 per kilogram of milk solids (kgMS), it's forecast closing price for the 2016/17 season.
WHY has the Australian dairy Industry gone down the path of pushing its farmers into flattening their milk supply curve when there is no real need to and, has this now gone too far?
Fonterra Australia will offer support measures for its autumn calving suppliers, following the revision of its season 2015/16 farmgate milk price.
FONTERRA will sell its Australian yoghurt and dairy dessert business to Parmalat, the co-operative annouced this morning.
The sale, which is conditional on regulatory and other approvals, is expected to be completed in the first half the of the 2016 calendar year.
The divestment of its Australian yoghurt and dairy desserts business, which includes manufacturing sites at Tamar Valley and Echuca as well as its Australian yoghurt and dairy dessert brands, is part of a comprehensive plan to return the co-operative’s Australian business to strong and sustainable profitability, Fonterra said is a statement.
Chief executive Theo Spierings said the sale was part of a suite of changes that were part of a clear strategic plan to transform the Australian business to deliver stronger returns to farmer shareholders and unit holders.
“We are focusing on areas where we can win in a highly competitive market, and that means optimising our product mix and streamlining operations to match, and investing in higher value add products that will deliver the best returns for our farmer shareholders and unit holders.
“Australia is our largest milk pool outside New Zealand, and is an integral part of our multi-hub strategy. Our Australian operations have particular ingredient strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses. As a key part of our multi-hub strategy, we are matching these strengths with the opportunities across our 100 markets,” said Mr Spierings.
Fonterra managing director Oceania Judith Swales said "the divestment is a decisive step to lock in our competitive position in the Australian consumer market".
“We will continue investing in programs and innovation that supports our market-leading brands in key retail categories, including Western Star butter and Perfect Italiano, Mainland and Bega cheeses, Anchor cream, and fresh milk.
“Divesting the yoghurt and dairy desserts business will allow us to focus on what we do best, so we can continue delivering a competitive milk price to our suppliers, benefits to our customers, innovative dairy foods to our consumers, and improved returns to our farmer shareholders and unit holders,” concluded Ms Swales.
Fonterra said its Echuca and Tamar Valley employees in the yoghurt and dairy dessert business have received offers of employment from Parmalat.
AUSTRALIA'S Legendairy Capital will soon also be home to Australia’s premier cheese-making facility, with Fonterra Australia to invest $120 million in building a state-of-the-art cheese plant at its Stanhope factory.
FONTERRA Australia's state-of-the-art beverages plant was officially opened today by Victorian Minister for Agriculture and Regional Development Jaala Pulford in Cobden.
FALLOUT FROM the 2013 false botulism scare and poor yoghurt sales continue to haunt Fonterra’s Australian business.
Fonterra has announced its opening farmgate milk price for suppliers in Victoria and Tasmania for the 2014/15 season is $5.80 per kilogram of milk solids (kg/MS) and that it is currently forecasting a closing range of $6.10 - $6.30 kg/MS for the 2014/15 season.