Goat Milk

A newly released 2025 report from the International Dairy Foods Association (IDFA) unveils the remarkable economic contribution of the U.S. dairy industry.

According to the report, the dairy sector not only supports an impressive 3.05 million jobs across the nation but also contributes nearly $780 billion to the U.S. economy. This comprehensive economic impact underscores dairy’s role not just as a food supply, but as a crucial economic driver and job creator.

The vast interconnectedness of dairy farms, processors, and related industries highlights the sector’s influence on the broader economic fabric. The financial contributions from this industry also extend to public finances, generating $83 billion in taxes that bolster public services and infrastructure nationwide.

Moreover, the U.S. dairy industry’s export capabilities further solidify its stature, with $8.2 billion in annual exports, enhancing the nation’s international trade position. These findings emphasize the sector’s substantial influence, making it an essential component of both national economic health and global market presence.

In response, the IDFA aims to broaden awareness of the sector’s contributions through increased engagement in industry and public discussions.

Bega Group has expressed interest in acquiring Fonterra’s Oceania operations, a move that aligns with Fonterra’s strategy to focus on dairy ingredients and foodservice.

Australian food and dairy company Bega Group is pursuing an informal merger clearance from the Australian Competition and Consumer Commission (ACCC) for a potential acquisition of Fonterra’s Oceania business unit. This unit includes operations in New Zealand and Australia and was put on the market last year, as part of Fonterra’s strategy to exit its consumer-facing operations and concentrate on dairy ingredients and foodservice channels.

Bega Group believes an acquisition of these assets would enhance outcomes for both the company and the wider dairy industry in Australia. However, Bega Group will be competing with other potential buyers, including French dairy giant Lactalis, which has already submitted a proposal to acquire Fonterra’s assets.

Other speculated bidders for Fonterra’s assets include Canada’s Saputo, Japan’s Meiji Holding Co., and the US investment company Warburg Pincus, although these have not been confirmed. Meanwhile, Bega Group intends to work closely with Fonterra Group on this potential acquisition.

Bega Group, headquartered in Bega, New South Wales, is known for its popular brands such as Vegemite and Bega Peanut Butter. The company reported a revenue increase of 3% to A$1.8 billion and a 44% rise in normalized EBITDA to A$110.3 million for the first half, with net profit after tax growing to A$35.9 million from A$13.3 million a year earlier.

Fonterra, New Zealand’s leading dairy cooperative, showcases the advantages of grass-fed dairy in the expanding Chinese market for ‘yellow oil’ butter.

Fonterra is capitalizing on the growing Chinese demand for dairy products, emphasizing the unique qualities of New Zealand’s grass-fed dairy. The “yellow oil” butter, made from milk of grass-fed cows/goats, is particularly prized in China.

Fonterra’s greater China CEO, Teh-han Chow, highlighted the benefits of sunshine, grass, and rainfall during the Bakery China expo in Shanghai, drawing attention to the natural production methods that distinguish New Zealand dairy. The expo, which is the largest of its kind, attracted nearly half a million attendees over four days to see the latest in foodservice innovations.

As the Chinese market continues to develop, Fonterra introduced a new commercial cooking cream specifically tailored for the mid-tier commercial baking sector. Moreover, with the Chinese government’s increase of the recommended daily serving of dairy from 300g to 500g, there is a push for dairy’s role as a nutrient source.

Fonterra is also seeking to reinforce its presence in China by keeping its consumer brands and promoting the sustainable, natural aspects of its products. This strategy not only targets China but extends to other Asian markets, using successful themes from previous promotions in South Korea. With high consumer expectations, Fonterra continues to position its offerings with an emphasis on quality and sustainability, aiming to secure loyalty and growth in one of the world’s largest markets.