Category Archives: Fonterra

Peak milk, peak cows and Fonterra’s dilemma

New Zealand reached peak dairy cows at 5.02 million in 2014/15 and numbers are now in slow decline.  Peak milk was reached the same year at close to 1.9 billion kg milk solids and has since bounced around a few … Continue reading

Posted in Agribusiness, Dairy, Fonterra | 2 Comments

Why has Fonterra gone A2?

It is now more than a month since Fonterra and The a2 Milk Company (A2M) announced that they are going to work together. After the initial shock, and with Malcolm Ellis, National Market Manager from New Zealand-dominant dairy-semen provider LIC … Continue reading

Posted in A1 and A2 milk, Agribusiness, China, Dairy, Fonterra | 12 Comments

A2 herd conversion strategies

The decision by Fonterra to work jointly with The a2 Milk Company (ATM) to produce A2 dairy products will have come as a shock to everyone outside the direct negotiation process. This change now throws into sharp relief the challenges … Continue reading

Posted in A1 and A2 milk, Dairy, Fonterra, Synlait | 4 Comments

A2 plus Fonterra is a seismic shift

The joint venture agreement between Fonterra and The a2 Milk Company (A2M) to work together producing dairy products free of A1 beta-casein is a seismic shift for both the New Zealand and global dairy industries. Fonterra has consistently expressed strong … Continue reading

Posted in A1 and A2 milk, Agribusiness, Canterbury Earthquake, Dairy, Fonterra, Synlait | 10 Comments

Dairy prices have downside risk

Whenever I write about the dairy price outlook, the key messages are about volatility and unpredictability. Nevertheless, right now the risks are weighted to the downside. There is considerable nervousness within the export trade about the next GDT auction in … Continue reading

Posted in Agribusiness, Dairy, Fonterra | Leave a comment

Commodities and cost savings drive Fonterra’s performance

Fonterra’s 2017 financial performance was a solid result, despite profits dropping 11 percent to $745 million. The main cause of the drop was the higher farm-gate price of milk supplied by its farmers, which is a cost to corporate Fonterra. … Continue reading

Posted in Agribusiness, China, Dairy, Fonterra | 2 Comments

Composting barns can be a dairy solution

There is increasing recognition that 24/7 paddock wintering of cows is not the way forward for New Zealand dairy. The challenge is to find solutions. These solutions need to achieve good environmental management, they need to be animal friendly, and … Continue reading

Posted in Agribusiness, Dairy, Fonterra, Land and water | 14 Comments