Fonterra predict milk price revival
Fonterra has expressed signs of revival in the dairy industry with projections of NZ$4.60 per kg of milk solids vs only NZ$3.85 from a projection just earlier in the season. Despite a fall in Fonterra’s benchmark Global Dairy Trade Auction, Fonterra remains bullish for the rest of the season. Chinese imports in September are up 25 per cent from last year, where China has seemed to have recovered after retreating from the market after a previous buying spree in the market. Click here for article.
GrainCorp to take on the Canadian market
GrainCorp, in a joint venture with Japanese farm co-operative Zen-Noh Grain Corporation, looks to tap into the grain market by constructing new receival sights in Alberta and Saskatchewan. Zen-Noh Grain is a subsidiary of Japan’s national co-operative Zen-Noh, which already exports 13 million tonnes of various grain products from North America, particularly to Japan. GrainCorp will gain a 50 per cent stake in the venture, and sees this as a great opportunity to “strengthen further our ability to supply our customers in Japan and Asia”. Click here for article.
Nestle to assist Chinese dairy farmers
The Swiss giant already has a dairy farming institute in Harbin and looks to increase the number of Chinese farmers it trains. Xue Jiangang a farmer from Shandong province noticed the incidence of cow mastitis, an inflammation of the udder, fell after he used new techniques learned during his training. These institutes increase professional expertise, disease awareness, which in turn will lead to more and safer dairy supply. Of recent years Nestle has purchased a large volume of dairy in the Harbin region to stimulate the dairy industry. Click here for article.
DuPont to merge with Dow Chemical
A merger between DuPont and Dow Chemical will see the creation of the biggest agrichemicals and seed’s company in the world. Whilst the merger seems to be of a grand scale, the plan is to separate the business into three areas of agriculture, materials science and specialty products within 18-24 months. The new seed department will surpass competitors Monsanto and Syngenta, however some have seen the concentration of market powers as alarming. Andrew Liveris, CEO of Dow Chemical and one of Australia’s most senior global business figures, will transition to an Executive Chairman role at the merged company. Click here for article.