Canada, dairy and the TPP – Keith Woodford:
Canada and New Zealand are currently in serious negotiations as to future rules for the Trans Pacific Partnership (TPP). In relation to dairy products, we sit on different sides of the debate. We want free access. In contrast, they want to retain their supply management quotas which control how much milk is produced, and hence protect the farm-gate price of milk.
The widespread assumption in New Zealand is that free trade will open up new markets in Canada. The current dairy market there is 8 billion litres per annum. To put that in perspective, our total milk production in New Zealand is about 20 billion litres per annum. So on the surface, free trade could open up exciting new opportunities.
A recent report from The Conference Board of Canada places a different perspective on matters. They agree with New Zealand that Canada should get rid of its supply management scheme. However, they see the outcome being that Canada would rapidly transform its industry and become a major exporter. . .
Dairying’s other big 2014 vote – Willy Leferink:
This year will see a general election but you have to wonder if three-year cycles are sufficient. Let’s face it, year one is learning the ropes and doing what you promised. Year two is fine tuning what you’ve done or running a mile from what you’ve done, meanwhile, year three is all about getting re-elected.
Many systems have four or even five year cycles and DairyNZ’s impending vote on its $61 million industry good levy fits into the five year cycle.
It isn’t appreciated by many who bemoan the lack of research and development in New Zealand, that every time my girls come in for milking, 3.6 cents in every kilogram of milksolids they produce goes towards R&D. This money is collected by the milk processors and passed to our industry good body, DairyNZ. It undertakes a whole host of research activities that no farmer could ever hope to do individually. DairyNZ further leverages what it gets from us farmers in larger programmes like the Agricultural Greenhouse Gas Research Consortium and through the Primary Growth Partnership (PGP. . . .
Westland Milk Products, New Zealand’s second biggest dairy co-operative has confirmed today that it is registered to export dairy products including infant formula milk powder to China.
The company has been working with the Ministry for Primary Industries and Chinese authorities and has been notified of its registration with the Certification and Accreditation Administration of the People’s Republic of China (CNCA).
“We support the Chinese moves to impose greater controls and stricter standards around the importation of infant formula. Ultimately this will benefit New Zealand exporters by giving Chinese consumers more confidence in our products” says Westland CEO Rod Quin. . .
Synlait misses China regulation deadline as it waits on factory build – Suze Metherell:
(BusinessDesk) – Synlait Milk, the dairy processor which counts China’s Bright Dairy as a cornerstone shareholder, missed out in the first round of approvals under China’s new regulation of imported infant formula as it waits for the completion of its new processing and packaging plant.
The Ministry for Primary Industry expects Synlait will receive approval once the new dry blending and consumer packaging factory is built which is scheduled for completion next month, the Rakaia-based company said in a statement. Companies without the new registration won’t be able to sell infant formula produced from today in China.
A2 Milk Company, whose Platinum infant formula is manufactured at Synlait’s Canterbury plant, also missed out on registration, which includes demonstrating a close association between brand owner and manufacturer. . .
The initial list of registered New Zealand companies issued by the Certification and Accreditation Administration of the People’s Republic of China (CNCA) did not include Synlait Milk as an exporter of finished infant formula into China. This announcement has been anticipated by the Company for some time.
The Ministry for Primary Industries (MPI) has confirmed that it expects Synlait Milk to receive registration following the approval of its Risk Management Plan by MPI for its dry blending and consumer packaging facility. Construction of this facility is scheduled for completion in June 2014. . .
The intended acquisition of New Zealand milk-drying and infant formula blending and packing capacity by French-owned Nutricia is a further indication of confidence in the New Zealand food and beverage industry, says the Food & Grocery Council.
Chief Executive Katherine Rich says today’s announcement is significant.
“This is great news for the industry and for New Zealand’s infant formula manufacturing capacity.
“Having such a renowned multinational company purchasing two New Zealand firms to ensure it has a major infant formula local manufacturing facility affirms once again that New Zealand’s dairy industry remains among the best and safest in the world.” . . . .
(BusinessDesk) – Comvita, which makes health products from manuka honey, said annual earnings and revenue eclipsed 2013, meeting guidance, as recent apiary acquisitions improved its security of supply. The shares fell.
The Te Puke-based company said net profit was about $7.5 million in the 12 months ended March 31 from $7.4 million a year earlier, on revenue of $115.3 million, up from $103.5 million in 2013. The company had previously said it anticipated beating 2013 profit and sales.
“When unconstrained by raw material shortages, as happened in the second six months, we clearly have growth momentum,” chief executive Brett Howlett said in a statement. “The strategy of acquiring apiary businesses is working to alleviate the supply shortage pressures.” . . .