New Zealand-based Fonterra Cooperative Group plans to raise supply to meet demand by doubling its milk production in China to 300 million liters annually, the company announced Tuesday. Fonterra said it plans to build a second farm hub in the northern Shanxi province and increase milk production in the country to 1 billion liters by 2020.
Springfield, Mo.-based Roberts Dairy plans to start using the Hiland Dairy brand name on its products starting in May, the company says. Roberts is a division of Prairie Farms-Hiland Dairy, and its products are distributed throughout 11 states.
Sanjay Khosla departed from his position as chief executive from New Zealand-based Fonterra Brands and now heads up the international commercial division of Kraft Foods. During his tenure at Fonterra, Khosla's strategy focused on a few powerbrands the company produced and exiting some international markets.
Powder milk prices are soaring worldwide as Australia's drought continues and European farm subsidies fall. New Zealand-based Fonterra doesn't expect to change its payout forecast, though, on account of the higher-performing New Zealand dollar.
New Zealand-based Federated Farmers is asking farmers to seek advice from independent financial planners before they decide whether or not to sell their Fonterra shares to Dairy Equity Limited. Dairy Equity is seeking to buy the shares from the farmer suppliers, which would turn some or all their shares into capital while maintaining their voting and supply rights.