LIC is to collaborate with Scandinavian breeding co-operative VikingGenetics to improve the genetic links between New Zealand and Nordic Jersey cattle populations.  

The two breeding companies will work together on a pilot project that will bridge the genetic strengths of the two regions’ dairy industries. 

This involves exchanging sexed semen, which allows LIC and VikingGenetics to identify new bloodlines that perform well in their own dairy farming environments.  

LIC chief scientist Richard Spelman said they are deeply committed to safeguarding the future of the Jersey breed in New Zealand and worldwide.

“This forward-thinking solution will create stronger genetic connections between the Nordic and New Zealand Jersey populations and reduce the risk of inbreeding. 

“We look forward to being able to offer more genetic diversity to our New Zealand Jersey herds in the coming years.”   

 VikingGenetics is owned by more than 16,000 dairy and beef farmers in Denmark, Sweden, and Finland. They focus on animal welfare, food security and reducing climate impact in the entire production chain.

VikingJersey product manager and VikingGenetics senior breeding manager Peter Larson said the collaboration is a step forward in the overall genetic landscape of the Jersey breed, offering breeders a sustainable way to enhance herd health and profitability.

The collaboration will help address concerns over inbreeding within the two populations. 

Selected cows will be inseminated with sexed semen from top genomic sires, using stringent selection criteria to achieve the best genetic results. 

All progeny will undergo comprehensive testing, verifying their parentage, data from milk recording, health registration and classification, and more. 

Between 10 and 20 bulls from each company will be enrolled in the project annually. The ultimate goal is to have the best sires forming part of future breeding schemes.

Dutch dairy farmers will from next spring have access to the first of possibly two new tools that could potentially reduce methane emissions from cows by around 30%.

Next breeding season they can access semen from low methane emitting bulls, the result of an eight-year programme run by Wageningen University & Research in the Netherlands.

For the past four years researchers have collaborated with Dutch dairy company FrieslandCampina and genetics company CRV to establish breeding values for methane.

This measure alone is estimated to reduce average emissions by 1%  each year, accumulating to more than 25% by 2050.

University scientists are also working on a project to utilise rumen fluid from cows that are naturally low enteric methane producers.

This rumen fluid is fed as a probiotic to newborn calves in a five-dose course.

It has been found to permanently adjust the recipient’s microbiome, providing a further 10% reduction in methane emissions.

Scientists are by nature conservative, but the team at Wageningen are encouraged their work could make a tangible reduction in livestock methane emissions.

“I am quite optimistic,” said senior researcher Léon Šebek.

“It is quite difficult, if not impossible, to reach methane reduction goals that have been pledged without any interventions other than feeding strategies.

“It shows the need for extra interventions.

“What we have shown here is that additional interventions through breeding values and steering microbiome will become available.

“If so, most Dutch dairy farms will have a suitable intervention meaning that we can achieve an average reduction of around 30% in methane by 2050.

“If we only used feed strategies and relied on the efficiency of the herd, we will only get a 15-20% reduction.”

Significantly, these one-off interventions provide permanent gains.

The project team, led by Professor Roel Veerkamp, focused on breeding values in Holsteins, which make up 92% of the 1.6 million-cow Dutch dairy population. 

They measured emissions from 9000 cows on 100 Dutch farms and linked their methane emissions to their DNA, which confirmed heritability of the trait of around 25%.

Correlations with other desired breeding values were found to be maintained.

From this reference population they were able to estimate the first genomic breeding values for methane emissions, which will be rolled out next year.

The project will be extended and international collaboration will enable the reference population to be enlarged to increase the reliability of the breeding values.

This is at least a year ahead of New Zealand, where LIC expects to have a methane-emitting breeding value in the market by 2026.

In parallel to the genetics research, work has been underway since 2017 looking at the whether the natural development of a cow’s rumen microbiome can be manipulated to reduce enteric methane production.

Šebek said initial work established that while feed and feed efficiency are influential factors in emissions, there was still a 20-24% variation between cows when feed was accounted for.

This indicated other factors were in play.

For two years they worked with dairy farmers studying gut microbiome fluid samples, which related back to feeding and management.

From that analysis they established the role of the microbiome.

Šebek said they also established there was no link between the microbiome of a cow and her calf – in other words the environmental factors were dominant over possible genetic transfer.

They introduced to calves microbiome from low enteric methane producing cows and found five doses sufficient to permanently alter the production of methane in the gut of recipient calves.

To prove their encouraging hypothesis, they analysed 60 calves – 20 given microbiome from low methane producing cows, 20 from high producing cows and 20 as a control.

The average methane emissions of the selected microbiome donor groups was 17.2 and 24 grams methane/kg/DM for low and high methane producing cows respectively.

Satisfied the process will provide tangible benefits, Šebek said work is now focused on how to source the targeted microbiome and how and in what format to deliver it.

There is also the issue of securing public support or a social licence given the nature of the product.

Adopting the technology also has to be cost effective and provide sufficient benefits or incentives for farmers.

Programme manager Elian Verscheijden said recent meetings with some of the Netherlands’ most progressive dairy farmers who have used mainly feed and management measurements, showed they were able to achieve methane reductions of 10-15% but could not improve beyond that.

She said this research sends a message to the Netherlands government and the public that the sector is taking the issue seriously and it is making progress. 

Both research initiatives are part of an integrated approach programme launched in 2018 to address methane emissions from livestock farming.

The program is funded by the Netherlands’ Ministry for Agriculture, Fisheries, Food Security and Nature with a budget of least NZ$16 million a year.

Besides research to enteric methane, the programme also includes finding solutions to reduce methane emissions from manure, a significant issue for Dutch farmers.

The first goal of the programme is to comply with the government’s 2030 goal to reduce methane by 30% compared to 2020.

Ultimately the government has a goal of close to carbon neutrality by 2050.

More: Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.  Read more about his findings here. 

In Focus Podcast | Selling lamb to a new generation of Brits

Reporter Neal Wallace checks in from London, where he’s spent time with the Alliance Group’s UK team. They’ve hired a chef to come up with new recipes for those consumers who don’t want the traditional lamb roast and learns that a football stadium is a key part of the strategy.

Voting has opened for two vacant directorship positions on DairyNZ’s board.

This year, three candidates – Jacqueline Rowarth, Tirau; Richard McIntyre, Levin; and  Kylie Leonard, Taupō – are vying for the two vacant positions.  

Farmers have until noon on Thursday, October 17, to cast their votes.

Voter packs have been sent out since September 19. Dairy farmers can vote online or by post. 

This year, DairyNZ is hosting a Meet the Candidates webinar, on Friday, September 20, at 7pm, providing an opportunity to ask questions of the potential directors.

DairyNZ’s board consists of five farmer-elected directors and three board-appointed directors. This year, Jim van der Poel is retiring, and Jacqueline Rowarth is retiring by rotation and is re-standing.

Outside of the candidate vote, there are four resolutions for farmers to ratify in their vote pack, including the appointment of independent director David Hunt and changes to the rules of DairyNZ to reflect new regulatory changes and capture recent feedback from farmers.

Further details on the resolutions and proposed changes are available in the Notice of Meeting booklet in farmer voting packs and online.  

China has initiated an investigation into the dairy subsidies provided by the European Union and several of its member states.

The investigation could reshape the global dairy trade landscape with increased trade tensions potentially benefitting dairy exporters from Australia, New Zealand, the United Kingdom and the United States, according to a new report by Rabobank.

The investigation focuses on the EU’s Common Agricultural Policy and national plans of eight countries and is in response to the European Union’s decision to hike tariffs on Chinese electric vehicles.

However, market impacts are unlikely to be felt until at least 2026 – if at all. 

The report,  Navigating Trade Tension: Potential impacts of China’s probe into EU dairy subsidies, says the EU’s recent announcement that it will increase tariffs on Chinese electric vehicles has led to a counter-reaction.

“With the EU tariffs set to rise significantly, China’s Ministry of Commerce has launched an investigation into EU dairy subsidies that could have far-reaching consequences for European exports. 

“The targeted products, including liquid cream and various cheeses, represent a significant trade value of US$572.5 million [$917m] as of 2023,” report co-author senior agricultural analyst Emma Higgins said.

While the report says the current investigation does not encompass the highest-volume categories such as whey-derived products and milk powders, there is concern within the industry that China may broaden its investigation.

“The investigation, expected to run through most of 2025, leaves the door open for potential market impacts by 2026. France, as a major exporter, could be significantly affected, given its 37% share in the targeted product exports,” Higgins said.

“Meanwhile, some dairy industry participants are concerned that China could expand the scope of investigation-targeted products.”

As the investigation unfolds, non-EU dairy exporters including Australia, New Zealand, the UK, and the US are poised to capitalise on any resulting trade shifts.

Should there be any additional tariffs implemented, products sourced from  Oceania could be more competitively priced.

“As it stands, New Zealand and Australia already export large volumes of cheese and cream into China and would therefore be well-placed to step in and fill any trade gaps that might arise,” she said.

China’s domestic dairy industry is currently experiencing overproduction relative to demand. This has prompted a strategic shift towards value-added dairy products to better utilise the surplus and potentially reduce reliance on imports. 

“The ongoing trade tensions with the EU may inadvertently accelerate this transition, offering a silver lining for local Chinese dairy producers and exporters from other nations,” Higgins said.

A food scientist from the Riddet Institute, Natalie Ahlborn, has wowed judges at an international dairy industry award, placing second in the International Dairy Federation Professor Pavel Jelen Early Career Scientist Prize. 

The International Dairy Federation (IDF) is an international authority in the development of science-based standards for the global dairy sector, with the IDF Professor Pavel Jelen Early Career Scientist Prize specifically for scientists who gained their highest degrees three years ago or less. 

Ahlborn has been researching processed milk and its effects on digestion and nutrient absorption, as part of the Ministry of Business, Innovation and Employment-funded New Zealand Milk Means More research programme at the Riddet Institute, based at Massey University in Palmerston North. 

Pasteurisation, UHT treatment, and homogenisation are commonly used to process milk, and Ahlborn wanted to know what these treatments mean for digestion and nutrient uptake. 

She examined milk nutrient digestion and absorption in the gastrointestinal tract, finding that the protein in UHT milk was digested the fastest, followed by the protein in pasteurised homogenised milk, then pasteurised non-homogenised and, finally, raw milk. 

Curd formation and stomach emptying of solid matter and lipids were also measured. There were substantial differences in digestion of the fats and solid portions of the milks. 

The research has created a fundamental understanding of how processing affects the gastric digestion of milk protein, and how this might contribute to milk’s nutritional outcomes. 

Ahlborn said the findings could lead to tailored milk products that deliver superior nutritional value to consumer populations with different nutritional needs, such as those of athletes or the elderly.

“As the global population grows and ages, the need for quality nutrition is paramount, and this research could contribute to meeting this need.”

Ahlborn will receive a printed certificate recognising the achievement and an honorarium of $360. She will attend the IDF World Dairy Summit 2024 to be held in Paris, France, from October 15-18 to collect her award and present her research.

NZ Milk Means More project leader and Ahlborn’s PhD supervisor Professor Warren McNabb said the win is an amazing opportunity for Ahlborn.

“Natalie has done an outstanding job with her research. It’s not every day that a global entity like the IDF takes notice of someone and then pays for them to travel to Paris to receive an award. It’s quite a big deal.” 

Arran Trust is recalling specific batches of its Arran Farm brand raw (unpasteurised) drinking milk, as the product may contain Campylobacter.

New Zealand Food Safety acting deputy director-general Jenny Bishop said the concern with the unpasteurised milk is that Campylobacter, a foodborne bacterium, can make you sick.

The affected product is Arran Farm raw drinking milk sold between August 23 and September 17. The milk was sold through a vending machine at Arran Farm Milk Shop in Feilding. It has not been exported.

“This raw milk should not be consumed. Return it to Arran Farm for a refund or, if that’s not possible, throw it out,” Bishop said.

“You can also heat the raw milk until just boiling for one minute to kill any bacteria present before drinking it. Drinking raw milk carries inherent risks as it may contain harmful bacteria that are killed through the pasteurisation process.”

Symptoms of Campylobacter infection are vomiting, diarrhoea, abdominal pain, fever, headache and body aches.

If you have consumed any of this product and are concerned for your health, contact your health professional, or call Healthline on 0800 61 11 16 for free advice.

The product under recall was identified through routine testing.

“As is our usual practice, we will work with Arran Trust to understand how the contamination occurred and to prevent its recurrence,” Bishop said.

Raw milk is not pasteurised, which means it misses out on an important process that kills harmful bacteria.  

By Chris Balemi, founder and managing director of Agvance Nutrition.

Farmers are in a critical window now to ensure optimal fertility and high in-calf rates in their dairy herds. Once lactation begins, we are aiming to get our cows to peak milk as quickly as possible and it is important this is well supported with good nutrition so that cycling and fertility do not suffer. Finding the balance between peak milk and fertility can be done, and it involves more than just feeding and breeding management. 

Many farmers ease off mineral supplementation as mating approaches and become very complacent mid-season once cows have been mated and are well into lactation. Mineral deficiencies can directly impact the health of the cow, particularly fertility and reproduction, at any time of the season. 

Conception is just the beginning – maintaining the pregnancy needs to be the goal. Mineral composition and liver health play key roles throughout the season, making sure your cows are ready for mating and that a healthy pregnancy is maintained through to the next calving.

Minerals such as selenium, copper, cobalt, iodine, manganese and magnesium all play an important role in a cow’s reproductive health and correct forms and ratios are critical in supporting fertility. 

Selenium, for example, is critical for good immune function and overall health, which impacts fertility. Copper influences enzyme systems related to fertility and energy metabolism. Selenium and iodine support thyroid function, and cobalt supports good digestive health. 

These all come together to support metabolism and reproductive cycles. Cows need to receive a balanced mineral supplement alongside quality nutrition. Regular blood tests will help monitor mineral levels and signal any necessary supplement adjustments.

A cow’s powerhouse is her liver – without healthy liver function, she’ll struggle at every step, with potentially fatal results. Central to many bodily functions, the liver supports detoxification, metabolism, and nutrient storage. 

Proper liver function drives the cow’s ability to metabolise energy efficiently. During early lactation, the liver works overtime to manage energy demands. High-energy diets, including high-quality pasture and feeds, are essential. 

Incorporating specific types of bypass fat in the diet can boost energy density without overloading the liver. Practical steps farmers can take to support a healthy liver include ensuring that the cow is eating well and maintaining healthy body condition, while monitoring liver health through regular vet checks and blood tests to catch any potential issues early on.

Body condition scoring (BCS) is a practical method for assessing whether cows are at an ideal weight and health status. A BCS of 5.0-5.5 is generally recommended for cows at the start of mating. 

Cows in this range have enough body fat reserves to support the demands of lactation and pregnancy. Energy density in their diet is crucial – ensure cows have access to high-quality pasture and supplementary feeds. 

Peak milk production places significant energy demands on cows, making it all the more important to provide balanced nutrition to maintain their body condition. 

Planned feeding that will put condition on cows during periods when the cow is still lactating, yet past the peak of lactation, works well. This ensures the fat is stored below the skin (adipose fat) and not around the organs (visceral fat). 

Adipose fat acts as a natural energy reserve and can be readily mobilised, whereas visceral fat, when mobilised, tends to clog the system and is particularly detrimental to liver function (fatty liver disease). Proper BCS management is critical and leads to better reproductive performance and overall herd health.

Correct mineral levels, healthy liver, and good body condition work together to put cows in a strong position for successful mating. Adequate mineral levels ensure all physiological processes related to reproduction are functioning correctly. Healthy liver function supports efficient energy metabolism, which is essential for maintaining body condition and supporting reproductive cycles. 

By focusing on high-quality pasture and feed and including bypass fats, you can provide the necessary energy to support peak milk production and pregnancy. When these elements are managed effectively, cows are more likely to have good fertility, be actively cycling, and be ready for mating.

Synlait chair George Adams has described the outcome of the special shareholders meeting  as “a watershed vote for Synlait”. 

“There was no option, there really weren’t any Plan Bs, the reality is this has saved [the company from] liquidation,” Synlait chair George Adams said.

“We have been extremely clear that should the resolutions not pass, Synlait would likely need to cease trading and initiate a formal insolvency process.

“We were also clear the board did not believe that insolvency was the best option or the best way to ensure creditors are paid and returns are delivered to shareholders.”  

The three resolutions put to shareholders at its special shareholders’ meeting at Dunsandel on Wednesday 18 September passed, all with more than 90% approval. 

“Shareholders have given us the opportunity to create a positive future for the company, its investors, 200 farmers, customers, suppliers and for our 1400 employees whose livelihoods rely on our business.” 

To reduce Synlait’s debt, shareholders were asked to vote on the issuance of approximately $217.8 million of new equity capital to the company’s two largest shareholders, Bright Dairy Holding Limited (Bright Dairy) and The a2 Milk Company, as well as Synlait’s settlement with The a2 Milk Company. 

Shareholders were also asked to vote on certain administrative amendments to Synlait’s constitution. 

The equity raise is conditional on the refinancing of Synlait’s bank facilities and certain other conditions. 

Synlait entered definitive documentation to implement the refinancing of its banking facilities on September 16.

The equity raise, the settlement with The a2 Milk Company, and the bank refinancing are all inter-conditional and therefore must all occur contemporaneously, or substantially contemporaneously with each other, or not at all, Adams said. 

Completion of all three components is expected on October 1, subject to the final conditions precedent to the equity raise and refinancing being satisfied. 

Bright Dairy-appointed director Julia Zhu acknowledged the strong Synlait shareholder vote of support for the company’s initial step to address its current debt position.

“Our commitment throughout this process has been to protect the long-term value of Synlait and our decision to participate further reflects the scale of our ambition to ensure Synlait rebuilds stronger, while restoring farmer supplier confidence over coming years. 

“We will continue to advocate that all shareholders are afforded the opportunity to participate in the company’s next capital management initiative.  

“As Synlait’s broader turnaround initiatives start to gather momentum, Bright Dairy looks forward to actively supporting growth initiatives across major Asian markets where the long-term fundamentals for Synlait’s product remain strong,” Zhu said.

Adams did not necessarily consider Synlait out of the woods.

“Today is the first step to re-set our financial position,” he said.

In its favour, he said, Synlait has world-class facilities with exceptional capability in quality and innovation.

“Synlait can deliver products that other New Zealand companies cannot. It is the largest infant milk formula manufacturer in the southern hemisphere, that is why it has committed to global customers.

“In addition, at Pōkeno we now have a facility that can produce advanced nutritional products incorporating plant-based ingredients.

“We remain focused on expanding our early life and adult nutrition in China and throughout southeast Asia alongside the expansion of our Foodservice UHT cream business.

“In the shorter term we have a strong commitment to cost control and bedding in new operational processes with The a2 Milk Company.  

“This all makes Synlait a company worth saving.”

Adams said the Dunsandel facility will remain the focus for dairy operations.  

He said the immediate action is to talk to farmers about cease notices.

Shareholder and dairy farmer supplier Willy Lefrink was happy with the result.

“It is the outcome I wanted to see for farmers, for a lot of staff, and for Canterbury as a whole; it is a positive step going forward,” he said.

“It would have been disastrous if the vote had gone any other way, it’s onwards and upwards from here.”

Shareholder and former Synlait director Ruth Richardson said the Synlait DNA has always been at the premium end of the product.

“Today is a substantial vote of confidence and will help turn the promise of the company into performance and the more the whole of the sector can focus on the premium end the more prosperous NZ will become,” Richardson said.     

With respect to Synlait’s listed subordinated bonds (SML010), the company  reminded holders that following the passing of the three resolutions, subject to completion of the equity raise taking place as anticipated, a change-of-control event will occur in relation to the bonds and holders will have the right to redeem their bonds early from October 1, 2024. 

The redemption price is expected to be $1.00 per bond (plus accrued interest) if the trading price continues to be less than $1.00. 

FoodWaikato’s spray dryer is about to undergo a $7 million upgrade as it eyes expanding its colostrum collection and processing capabilities.

The company, located at the Waikato Innovation Park in Ruakura, is in the middle of colostrum collection as dairy farms across the country calve their cows.

The plant upgrade will allow the colostrum to be “taken to bits”, Food Waikato chief executive Trevor Lock said.

The best “highly bioactive” parts of the colostrum will be processed into food supplements for gut health by plant owner, South Auckland-based New Image Group, and the rest used to create other products starting in 2025.

“We’re moving from dietary supplements – formulated products which we are making right now – to true nutraceuticals, where we are making soft claims.”

A research programme is in place to support those claims and $4.5m is being spent on research and development over the next few years.

Lock said they are looking for more farmers with the aim of having 100 farmers supplying the dryer with colostrum by next year.

They are also investigating the viability of collecting from farms that autumn or split calving.

Colostrum is the first secretion from a cow’s udder after giving birth and farmers are not permitted to put it into the milk supply until eight milkings have been completed – which is usually around four days.

Apart from Westland Milk and New Image, no other major dairy company collects colostrum. It is costly and its small volume makes it difficult to process in the large dryers most modern dairy companies use, Lock said.

“It’s very difficult to make. It’s difficult to collect and it’s difficult to manufacture.”

In their first run using the dryer, they processed the colostrum and tested its viscosity before drying it and it came out at 700 centipoise.

“It was like a thick paste. It’s very sticky, it’s very difficult.”

By comparison, regular cow’s milk has a viscosity reading of 20 centipoise, he said.

The flipside is there is enormous market demand for colostrum-based nutraceuticals. This is because the main global exporter, the United States, stopped exporting the product.

“Outside the US, New Image would be the largest colostrum user in the world,” he said.

The company exports its product to 26 countries, turning colostrum into a powdered drink for both adults and children to promote gut health.

The demand along with the factory upgrade has enabled Lock to hire four more staff. 

The expansion means the company is now operating 24 hours a day, seven days a week. 

The factory currently has a single dryer that can produce 500kg an hour and operates on four shifts with two people working on each shift.

When it processes nutritional formulas, it processes around 400kg an hour.

It also has a “wet side” operation that makes up all the ingredients for the nutritional formulas. That crew has two people and is about to double. Next year, he hopes to add two more as the operation moves to 24/7 too.

The company has a chequered history, having been put into liquidation last year before being purchased by South Auckland-based company New Image Group (NIG) in December. Lock has 25 years of experience in the colostrum market, having worked on developing the process to develop colostrum. 

Lock also has a fraud conviction and spent time in prison, which he is open about, saying he “did his time”.

Last year the company collected from four farms in South Waikato and this has expanded to more farms for this calving. Lock contracted the spray dryer at the Innovation Park on behalf of New Image to manufacture the colostrum, making 2 tonnes for the market.

Lock then put a business case to New Image to buy the plant and employ Lock to run it.

The colostrum collection does not interfere with the farmer’s relationship with the milk supplier, nor does it prevent the calf from getting all the colostrum it needs. 

The payment for the colostrum is based on the product’s immunoglobulin G (IgG) levels measured from three milkings done while the cow is producing colostrum.

The higher the IgG, the higher the payment. At the top end, the company pays $3.35/ litre for a 25-28 IgG level per litre and this is usually measured during the cow’s first and second milking. At the bottom end, it pays $1.35/L when the IgG is at 10-12/L.

The average payment would be $2.25/L from around 18L of colostrum from the first 36 hours since calving.

“If a farmer has 600 cows and they earn $2.25 a litre, it’s worth around $43.20 per cow for six weeks’ work.”

It adds up to around $25,920.

“We have one farmer in Southland who will earn in excess of $100,000,” he said.

“It’s good for the New Zealand farmer.”

On farms outside the tanker pickup area, the colostrum is bagged and frozen while it waits for collection for transport back to the dryer.

During the times of the year when cows are not producing colostrum, the major dairy companies use the dryer to test and trial new products and make specialised nutritional products.

Once the upgrade is completed, Lock also plans to process milk for specialised ingredient  products for NIG.

The dryer is also collecting and processing goat’s milk products via NIG, providing income for those cash-strapped farmers and supply security for them.

It also provided a lifeline earlier in the year for sheep-milking company Maui Milk, agreeing to process and sell the milk for 11 of its suppliers.

“Where this plant was going into liquidation into December, we have turned it around completely into a significant profit-making entity, hired more staff – the lights are staying on.”

Fonterra is to build a new $150 million cool store at its Whareroa site in Taranaki. 

Fonterra CEO Miles Hurrell said the investment, along with plans to build a new protein plant at Studholme and a new UHT cream plant at Edendale, are about creating value at every point of the value chain.   

“Over the past few weeks, Fonterra has announced significant strategic investments to expand and upgrade its operations. Our strong balance sheet is enabling us to invest for future growth and support ongoing delivery of our strategy,” he said.  

“These investments enable us to keep growing our ingredients and foodservice businesses as we look to prioritise these channels to create more value for the co-op.” 

The new cool store will be the size of three rugby fields (19,000 m2), store around 26,000 tonnes of cheese, and increase the site’s cool store capacity by around 5000t.  

Fonterra chief operating officer Anna Palairet said these are big investments, which will have a significant impact on the co-op.  

“As is always the case when making investment decisions, we carefully consider where to allocate capital to maximise value to farmer shareholders and unit holders over the long term.”  

The new cool store is strategically important as it will play a crucial role in the resilience of the co-operative’s supply chain.  

“Our Whareroa site processes up to 12.5 million litres of milk per day and produces 30% of the co-op’s cheese, along with a number of other products including butter, casein, and powders.”

Construction on the new cool store will begin next month and will take place over two phases to enable the existing building to remain operational.   

The expansion is expected to create local employment opportunities and is forecast to take three years to complete.