- Dairy accounts for the biggest export goods sector in New Zealand.
- Fonterra revised its milk collection forecast to 1500 million kgMS for the 2021/22 season on Tuesday, down by 1.6% from the previous forecast.
- ATM provided funding to Pacific Custodians Pty Limited on 20 December 2021.
Dairy accounts for the biggest export goods sector in New Zealand and contributes over $10 billion to the country’s economy. New Zealand has an inherent advantage of nature and geography, which creates an apt environment for growing grass.
The Country produces nearly 21 billion litres of milk every year. It produces a broad variety of dairy products, which includes milk powder, fluid milk, butter, cheese, etc.
On this note, let’s have a look at the performance of these 3 NZX dairy giants.
Image source: © 2021 Kalkine Media®, Data source- Refinitiv
Fonterra Co-operative Group Limited (NZX:FCG)
Fonterra Tuesday revised its milk collection forecast for the 2021/22 season to 1500 million kgMS, down 1.6% from the opening prediction of 1525 kgMS.
CEO Miles Hurrell stated that actual milk collections have been lower than last year due to changing weather and challenging growing conditions across the country. He noted that Fonterra would be carefully managing its sales, both on and off the Global Dairy Trade platform.
On 12 January, FCG ended the trading session at $2.98, up 1.02% from its previous close.
Infant formula company A2 Milk saw a tough FY21 with results impacted due to flat growth in the Chinese market and interruption to cross-border trade amid COVID-19.
On 20 December 2021, ATM provided funding to Pacific Custodians Pty Limited, enabling it to purchase ATM’s 600K shares through on-market purchases. The 600K shares are a balance of the prior announcement to allow Pacific to acquire nearly 2200K shares of ATM.
ATM plans to roll out growth and other proposals in FY23-24 and next-wave growth by innovating and transforming the supply chain in FY25-26.
On 12 January, ATM ended the trading session at $5.84, up 0.17% from its previous close.
Synlait Milk Limited (NZX:SML)
Dairy processing company Synlait Milk partnered with a multi-local food and beverage company Danone, Sustainable Food and Fibre Futures fund of MPI and NZ’s Crown Research Institute AgResearch on 6 December 2021.
The scheme will examine the condition of soil on 10 farms in Canterbury, Waikato and Otago over 5 years. While SML and Danone would contribute $1 million to the research while the NZ Govt has committed to providing $2.8 million towards it.
On 12 January, SML ended the trading session at $3.54, up 2.31% from its previous close.
New Zealand’s dairy sector plays a vital role in contributing to its GDP. However, GHG emissions remain a big problem for the sector.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)