ATM, SML, FCG- 3 NZX dairy stocks in focus

Highlights

• NZ holds a significant place across the global dairy marketplace with its top-quality dairy products.
• The a2 Milk Company offers financial assistance to its Trustee.
• Fonterra Co-operative Group gives a global dairy update.

New Zealand is well known for its quality milk products, which are supplied to many countries across the globe. The dairy sector contributes nearly NZ$10 billion to the nation’s economy and forms a major chunk of exports.

Moreover, NZ dairy farming is marked pasture-based farming, employing highly advanced equipment and large-scale processing facilities.

That said, let us explore the three NZX-listed dairy stocks worth considering this month.

Source: © 2022 Kalkine Media® data source- EODHD/Others

The a2 Milk Company Limited (NZX:ATM)

NZ’s premier dairy company is The a2 Milk Company Limited, selling a range of nutritional dairy products both in the domestic and international markets. Some time back, the Company had revealed that it provided financial assistance worth NZ$4.11 million to its Trustee, Pacific Custodians Pty Limited.

Do Read: The a2 Milk (NZX:ATM): What is the Company’s growth strategy?

The said funding support would enable the latter to deliver the Long-Term Incentive Plan and the Employee Share Plans.

It must be noted that the funding provided is not for the benefit of the Trustee but for the benefit of participants in the said Plans.

On 14 January, at the closing bell, ATM dipped by 1.59% at NZ$5.560.

Synlait Milk Limited (NZX:SML)

Synlait Milk Limited boasts of having a state-of-the-art processing facility to produce dairy products for its global customers, with Bright Dairy Holding Limited having a 39% stake in SML and four Board seats.

Also Read: How are 3 NZX dairy stocks faring in 2022?

A few days back, owing to work commitments, Qikai Lu (Albert) sought departure as one of Bright Dairy’s directors on SML’s Board.

Now, Dr Gui Min (Gracie) has been appointed director in his place, who has extensive experience in fields like nutrition and functional food.

On 14 January, at the closing bell, SML rose by 0.29% at NZ$3.420.

Fonterra Co-operative Group Limited (NZX:FCG)

Fonterra Co-operative Group Limited had recently shared its global dairy update, wherein it stated that its monthly exports across Australia and the US continued to climb, while those from NZ and EU saw a decline.

Also, its monthly production across all its regions saw a slump.

Further, FCG’s New Zealand milk collection was down by 5.3% for December 2021 on pcp, owing to varied weather conditions. 

On 14 January, at the closing bell, FCG gained by 0.33% at NZ$3.050.

Bottom Line

NZ dairy farmers are known for deploying highly mechanised techniques to produce high-quality safe milk.