Goat Milk

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.

Wisconsin has initiated a mandatory milk testing program for avian flu virus H5N1 across its dairy farms. This measure aligns with the U.S. Department of Agriculture’s national surveillance strategy aimed at early virus detection while minimizing milk wastage.

The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announced that milk samples would be collected during routine quality checks to ensure minimal disruption. The state-specific strategy enables faster identification and response compared to other states that conduct testing at processing plants.

With the capability to process approximately 1,250 samples per week, the Wisconsin Veterinary Diagnostic Laboratory plays a critical role in this effort. To date, over 6,000 tests have been conducted since April 2024, with no cases of H5N1 reported among the state’s dairy cows. Officials state that finding no virus for three consecutive months could allow for reduced testing frequency.

Industry groups, including Voice of Milk, endorse the state’s approach for its efficiency in safeguarding both the farm environment and consumer supply. Officials emphasize that pasteurized milk remains safe, reiterating the importance of the testing program for public health and farm safety.