Why are NZX dairy stocks important to the nation?

Highlights

• DairyNZ is conducting a genomic selection research project, resulting in improved yield running in millions yearly by 2040.
• The a2 Milk Company is aiming to rebuild its brand through innovative growth strategy and venturing into new markets.
• Allied Farmers to hold its Annual Meeting of Shareholders towards the fourth week of November.

New Zealand’s dairy sector is one of the prominent export sectors of the nation and has a significant contribution to the country’s GDP.

Recently in the Annual General Meeting of DairyNZ, it was mentioned that the country's dairy farmers contributed significantly to the economic wellbeing of the country.

It was also revealed that NZ farmers recorded the lowest carbon footprint across the globe when compared to other international producers.

Further, it was brought into notice that DairyNZ was running some major projects, including a genomic selection research programme on creating higher-yielding pastures, which would improve the yield from NZ$400 million to NZ$1.3 billion per year by 2040.

Amid this backdrop, let us get acquainted with the latest updates from the prominent NZX dairy stocks.

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The a2 Milk Company Limited (NZX:ATM; ASX:A2M)

New Zealand’s globally acclaimed premium dairy company is The a2 Milk Company Limited. Recently, on its Investor Day 2021, the dairy giant stated that the Company had an extraordinary journey that was disrupted by the pandemic in FY21.

Hence, ATM is focusing on rebuilding its brand by adopting innovative and sustainable growth strategies.

Related Read: Would The a2 Milk’s (NZX:ATM) latest strategy drive growth across multiple horizons?

It plans to expand its infant milk formula product portfolio to attract a wide consumer base by seeking adjacent category growth opportunities across the US, China, and ANZ. Moreover, it is considering penetrating new emerging markets as well.

Further, ATM has committed to reducing its greenhouse gas emissions considerably by the next decade.

At the time of writing, on 11 November, The a2 Milk Company was trading down by 0.47% at NZ$6.4.

Livestock Improvement Corporation Limited (NZX:LIC)

NZ’s famous dairy genetics and herd improvement co-operative is Livestock Improvement Corporation Limited. Due to the stepping down of its Chief Executive Wayne McNee on 30 November, the dairy company has appointed its CFO, David Hazlehurst, in an acting capacity.

Hazlehurst would take up this additional role from 1 December onwards till a suitable replacement has been found.

On 11 November, Livestock Improvement Corporation was trading flat at NZ$1.220, at the time of writing.

Allied Farmers Limited (NZX:ALF)

Allied Farmers Limited is a well-known dairy company engaged in the livestock business for many years. The Company has notified its shareholders of conducting a virtual Annual Meeting of Shareholders on 24 November, keeping in mind the safety of its shareholders amid rising COVID-19 cases across the country.

Apart from the election of directors, ALF would pass a resolution for re-appointing KPMG as its auditor and fixing its remuneration for FY22.

Shares of Allied Farmers were trading flat at NZ$0.760, on 11 November, at the time of writing.

Must Read: Look at the 5 popular NZX-listed dairy stocks

Bottom Line

With highly mechanised dairy farming and superior genetics, New Zealand boasts one of the most advanced dairy sectors across the globe, and its dairy products are known for their world-class quality.