Goat Milk

The company aims to enhance efficiency and maintain stable milk prices.

Fonterra, a leading dairy cooperative based in Auckland, New Zealand, has announced a strategic pivot towards high-value dairy protein and ingredients. This decision follows the sale of its Mainland division for $4.2 billion. The move aligns with Fonterra’s goals of driving efficiency, supporting growth, and ensuring stable milk prices for its suppliers.

The sale of Mainland is a significant step in Fonterra’s strategy to streamline its operations and focus on areas with higher growth potential. By concentrating on dairy proteins and ingredients, Fonterra aims to capitalize on the increasing global demand for these products. The company believes that this focus will allow it to deliver better value to its stakeholders.

Fonterra’s chief executive expressed confidence that the shift will reinforce the cooperative’s position in the global dairy market. He noted that the company is committed to leveraging its expertise in dairy production to develop innovative products that meet evolving consumer preferences.

This strategic realignment is part of a broader trend within the dairy industry, where companies are increasingly focusing on specialized and value-added products. Fonterra’s move is expected to set a precedent for other players in the sector.

According to the latest research report released by Fact.MR, the global mozzarella cheese market reached a size of US$38.6 billion in 2024 and subsequently expand at a CAGR of 5.9% over the next 10 years (2024 to 2034).

Mozzarella cheese, also known as curd cheese, can be sliced and used in food products. Mozzarella is popular for a variety of reasons, including its ease of melting, elastic and bouncy consistency, and smooth and soft texture.

The mozzarella cheese market is projected to grow at a steady pace. This growth is driven by mozzarella’s nutritional benefits, including its high calcium, protein, and vitamin content, which are increasingly recognized for supporting bone health and overall wellness. As the population becomes more health-conscious. Diabetic food manufacturers continue to consume a significant amount of mozzarella cheese.

Major contributors to this market expansion include key players such as Groupe Lactalis, known for its reduced-fat innovations, and Fonterra, which excels in export-grade mozzarella. The Grande Cheese Company is also a significant player, focusing on shreddable forms and clean-label certifications.

By application, food & beverage processing leads the market with a 44.23% share in 2024, valued at $17.07 billion, and is forecasted to reach $29.97 billion by 2034 at a 5.8% CAGR. Supermarkets and hypermarkets are the dominant sales channels, accounting for 50% of the market in 2024, expected to rise to $34.2 billion by 2034.

Regional dynamics reveal that North America holds a 24.7% global market share in 2024, with the U.S. leading at $7.07 billion, projected to grow to $11.63 billion by 2034. Meanwhile, East Asia is expanding its market share, driven by urbanization and rising incomes, with Japan at the forefront.

Recent market developments include Saputo‘s August 2022 launch of ‘Frigo Cheese Heads Swirls‘ and Dalter Alimentari’s March 2021 debut of cheese matchsticks, emphasizing the market’s focus on innovation and versatility.

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.