FarmSource - HOW TO KEEP YOUR NEWEST STOCK SAFE THIS SEASON - Farm Source
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FarmSource
OUR LINK TO THE DAIRY WORLD – JUNE 2018
Mycoplasma
Bovis eradication
remains the aim
Page 3
Spotlight on
Upper Waikato
Pages 14-15
HOW TO KEEP YOUR NEWEST
STOCK SAFE THIS SEASON
PAGE 4
FarmSource
JUNE 2018
COLUMNS
From the Chairman 1
Up front with Theo Spierings 2 Advance
Advance PaymentRates
Payment Rates
From the Shareholders’ Council Chairman 13 As at 24th May 2018
Hamish Hobson’s column 21 As at 24th May 2018
NEWS
M Bovis decision update 3
Keeping your calves safe from M. Bovis 4
Q3 Results – how your Co-op is performing 5 2017/18 2018/19
On the road with your Directors 6 Season Forecast
2017/18 Season Forecast
2018/19
VCR for the coming season
Co-op on top at NZDIAs 8-9
7
$6.75
Season Forecast $7.00
Season Forecast
Understanding our Chile investments
Splitting FEI demerit allocations
10 -11
12 $6.75
Base
Advance Rate
Capacity
Adjustment*
Base
Advance Rate $7.00 Capacity
Adjustment*
My Milk celebrates milestone 12 June paid July $3.70 $0.51 $3.95 $0.61
Base Capacity Base Capacity
Spotlight on the Upper Waikato 14 -15 Advance $3.85
July paid August Rate Adjustment*
$0.51 Advance
$3.95 Rate Adjustment*
$0.61
Why the Middle East love our cheese 16
Augustpaid
June paidJuly
September $3.70$3.85 $0.51
$0.51 $3.95
$3.95 $0.61$0.61
Best Cake Awards drive business 16
September paid October $4.15 $4.30
Online sales drive Indonesian market 17 July paid August $3.85 $0.51 $3.95 $0.61
Tip Top on top at ice cream awards 18 October paid November $4.25 $4.40
Co-op partners with community group 18 August paid September $3.85 $0.51
Peak Period $3.95 $0.61
Peak Period
November paid December $4.30 $4.45
Clean sweep at Ahuwhenua awards 19 September paid October $4.15 $4.30
December paid January $4.40 $4.45
How to create a wetland on your farm 19
Meet our climate change ambassadors 20 October paidJanuary
November
paid February $4.25$4.55 $0.51 $4.40
$4.75 $0.61
Peak Period Peak Period
Farmer’s handbook correction 20 November paidFebruary
Decemberpaid March $4.30$4.70 $0.51 $4.85
$4.45 $0.61
Teaching the next generation of farmers 22
March paid April $4.85 $0.51 $5.00 $0.61
Co-op targets career days 22 December paid January $4.40 $4.45
Your photos 23 April paid May $5.00 $0.51 $5.15 $0.61
January paid February $4.55 $0.51 $4.75 $0.61
Dairy farming, it’s a lifestyle not a job 28 May paid June $5.10 $0.51 $5.30 $0.61
REGULARS February paid March
July Retro
$4.70$5.30 $0.51 $4.85
$5.65
$0.61
Primary ITO 24-25 March paid August
April Retro $4.85$5.80 $0.51 $5.00 $0.61
$6.00
Update your account details 26
September
April paid May Retro $5.00$6.25 $0.51 $6.35
$5.15 $0.61
Understanding your Co-operative 27
Contacts 29-33 October Retro $6.50 $6.70
May paid June $5.10 $0.51 $5.30 $0.61
July Retro The Base Advance Rate payments (paid throughout
$5.30 $5.65the whole season) and
the Capacity Adjustment payments (paid in non-peak months) total an
average of the Farmgate Milk Price in respective seasons.
August Retro $5.80 $6.00
Farmgate
SeptemberMilkRetro
Price $6.25 $6.75 $6.35 $7.00
October Retro
* The $6.50
Capacity Adjustment Payment amount is based on the cost to Fonterra of$6.70
installing an additional litre of processing
capacity, the estimated peak day litres and the quantity of milk expected to be received in the peak months. For the 2018/19
seasons this results in a Capacity Adjustment Payment of $0.61 per kgMS. For more information on Capacity Adjustment
please refer to the booklet on Farm Source ‘Capacity Adjustment: Making it clearer’ or contact your Area Manager.
The Base Advance Rate payments (paid throughout the whole season) and
the Capacity Adjustment payments (paid in non-peak months) total an
average of the Farmgate Milk Price in respective seasons.
Farmgate Milk Price $6.75 $7.00
* The Capacity Adjustment Payment amount is based on the cost to Fonterra of installing an additional litre of processing
capacity, the estimated peak day litres and the quantity of milk expected to be received in the peak months. For the 2018/19
seasons this results in a Capacity Adjustment Payment of $0.61 per kgMS. For more information on Capacity Adjustment
please refer to the booklet on Farm Source ‘Capacity Adjustment: Making it clearer’ or contact your Area Manager.
Farm Source is produced by Fonterra.
Contact us at farmsourcemagazine@fonterra.com
Fonterra Co-operative Group Limited
Private Bag 92032, Auckland,
New Zealand
www.fonterra.com This magazine is printed with vegetable
inks on certified forest paper.
ISSN 2382-2171
Fonterra Farm Source >>> June 2018
1
NOTE FROM THE CHAIRMAN
Three strong positives aligning in the global dairy The outlook for dairy over the coming season is positive, but we
market mean we can get the new 2018/19 season off also face some additional risks and the obvious challenge posed
by mycoplasma bovis is a concern to everyone. The Government’s
to a confident start with a strong forecast Farmgate decision to push ahead and attempt eradication would have been
Milk Price of $7.00 per kgMS. a tough call, creating an incredibly difficult situation for those
This comes on the back of the improved Milk Price forecast for farmers who are affected. I agree with the Prime Minister’s
the 2017/18 season of $6.75kgMS and reflects market conditions comment that we do not want to be asking ourselves if we could
which are largely in balance. Demand is positive, especially out of have done more in years to come.
key markets like China, and while the world’s key milk producing What we need to be thinking about now is ensuring we are
regions can be expected to respond, we are comfortable with the doing everything possible to support those farmers who will face
$7.00 forecast at this stage. losses of stock and income. As a co-operative we need to stand
The results on the GlobalDairyTrade, with the minor shifts alongside one another. The risk of losing good people out of our
you’d expect as demand responds to pricing, support our industry is far worse than the risk of losing animals or income,
positive sentiment. so it is important we do all we can to help those impacted.
We also come into the new season with the Valued Component We must all ensure that we maintain strict biosecurity practices
Ratio (VCR) of our payment for milk reflecting the continued on our farms and ensure all livestock movements are accurately
return to favour of dairy fat, including cheese and butter, with the recorded. If you need any information to support you, please visit
latter staging a significant comeback. Consumer demand has the MPI and DairyNZ websites.
fundamentally shifted in favour of butter’s more natural, less We've just wrapped up another successful Fieldays. As always it
processed status as a product. We see this as a long-term shift, was a good opportunity to meet with farmers from around the
not just a passing consumer trend. Waikato and the country. It’s also the time when we see plenty of
The shift in attitude reflects the efforts of the global dairy industry forecasts for our industry and others in agriculture. I am
industry – with a lot of leadership from Fonterra – to counter confident these will be a timely reminder to all New Zealanders of
negative perceptions with evidence-based conversations about the hard work and resources that farmers continue to put into
dairy’s nutritional value, as well as media interest in scientific improving social, environmental and economic outcomes in their
studies that have disrupted previous thinking. rural communities, to the benefit of all New Zealand.
The Global Dairy Platform, which we chair, and the All the best for the new season.
International Dairy Federation, which we chaired until recently, John.
have both been proactive in promoting the nutritional value of
products right across the dairy spectrum – from fats to protein.
The end result is this changing value is reflected in the VCR for
the coming season which values fat at 30 per cent more than
protein. At 1.30 it is up from the 2017/18 value of 0.89, reinforcing John Wilson,
the trend of the last 5-6 years. Chairman
Fonterra Farm Source >>> June 2018
2
UP FRONT WITH
THEO SPIERINGS
Prepping for the season ahead Lazada is Southeast
Asia’s number one online
Most of you will be having a well-earned break from milking,
and are now well into preparing your cows and farms for the shopping platform, with
season ahead. access to 560 million
consumers in six countries
The off-season is also a time when many of our New Zealand – Indonesia, Malaysia, the
manufacturing plants close their doors for maintenance. Our winter Philippines, Singapore,
shutdown is one of the biggest annual maintenance programmes Thailand and Vietnam.
carried out in New Zealand. Approximately 6000 staff will tackle
projects across our operational sites to ensure your Co-op’s assets Through this
are in the best shape for another year of processing your milk. partnership, we will not
only gain access to
It’s the busiest time of year for our maintenance staff, and just millions of new consumers
like you on farm, our staff understand that the work we put in now in a growing dairy market,
will have a direct effect on productivity and returns when the new but we will also be able to
season kicks off. leverage Lazada’s
consumer analytics to
Focus on Financial Year End
better understand
There’s been a lot of talk about the revised milk price forecast consumer demand and
and what it will mean for our business. tailor our products to suit.
The increased milk price forecast, while good news for our farmers,
does put a challenge on our business. The rapid increase late in the World Milk Day
season constrains our ability to pass through the higher input costs A big thank you to all of
which has a temporary effect on our earnings. You can read more on you who took part in the
page 5. If we look generally at the forecast milk price, below $5.50 we World Milk Day
get issues of supply and above $7.50 we have issues of demand as celebrations. It’s a day to
prices become unaffordable. But within that range, over a long celebrate the goodness of milk, the farmers who make it and those
period, profitability should not be affected. of us who enjoy it. It was great to see so many Kiwis get involved on
We remain committed to maximising the total payout for our social media and raise their glasses in recognition of all the hard work
farmers and value for our unitholders by delivering the best possible you do – from celebrity cook Annabel Langbein, World Champion NZ
earnings. To achieve this, I’ve asked staff to focus very specifically on shot putter Tom Walsh, to Agriculture Minister Damien O’Conner
two main areas: and the thousands of kiwis who posted, tagged, or commented
First, the market – global demand is strong and our focus is on online in support.
selling as much product as possible for the best price. With a rapidly Thanks to your support the day was a success. Once again, we saw
rising milk price we must be very alert on our pricing strategies and #WorldMilkDay trending on twitter in New Zealand but, more
prepared to move quickly with the market. importantly, it was great to see the people who took part in the
Second, our costs – doing everything we can to reduce waste, celebrations having a lot of fun.
reduce downtime, and reduce losses to keep our costs down.
This is a focus year-round, but I have asked staff to revisit and
question all spending.
New partnership taps into 560 million consumers in
Southeast Asia.
To deliver greater long-term sustainable value from every drop Theo Spierings,
of milk, we must continually look for opportunities to share our
CEO
high quality dairy products with more people around the world.
Our Co-op recently entered into a new partnership with Alibaba
owned e-commerce company, Lazada, which will see our Anchor,
Anmum and Fernleaf products sold online to consumers in Southeast
Asia for the first time.
Fonterra Farm Source >>> June 2018
3
MYCOPLASMA BOVIS
– ERADICATION REMAINS THE AIM
The Government is calling for farmers to support
its decision to continue attempting to eradicate ERADICATION WILL INVOLVE
Mycoplasma bovis, saying the industry has ‘one shot’
• CULLING ALL CATTLE on all infected
to eliminate it.
properties along with cattle on most
The Government says the decision to pursue a phased restricted properties
eradication strategy was made in conjunction with farming industry
leaders after considering the pros and cons of eradication versus • ALL INFECTED FARMS FOUND IN FUTURE
other actions. will also be depopulated
Your Co-op, alongside the wider dairy industry, is committed to
eradication of Mycoplasma bovis for as long as this is technically • FOLLOWING DEPOPULATION, FARMS
feasible, while also acknowledging the deep impact it will have on ARE DISINFECTED and will lie fallow for 60
those farmers affected. Now that we have a decision, it’s important days after which they can be restocked
that we move forward together and ensure resources are quickly
put in place to support farmers through this difficult period. • INTENSIVE ACTIVE SURVEILLANCE,
including testing and tracing, will continue
to detect infected herds
• THERE WILL BE SOME FLEXIBILITY for
farmers in the timing of culling to offset
production losses
• AN IMPROVED COMPENSATION CLAIM
PROCESS. MPI says a substantial part of a
farmer’s claim for culled cows should now
take 4-10 days, with a fully verified claim
taking 2-3 weeks.
The 50 new ICP staff are on top of the 250 at MPI already
undertaking this work. MPI’s compensation team was also recently
increased and is expected to double in size as the response
progresses.
A new Field HQ has been set up in Cambridge and newly
appointed Science Adviser Dr. John Roche has been tasked with
Agriculture and Biosecurity Minister Damien O’Connor says researching new tools for the fight against Mycoplasma bovis.
while it’s a tough time for farmers, it’s vital that they support the Dr. Roche has a Ph.D. in ruminant nutrition from the National
eradication operation. University of Ireland and has most recently worked as a Principal
“While there remains a chance to get rid of this disease, we Scientist at DairyNZ and Professor in animal science at Lincoln
should take it. But it won’t work without farmer support. In University. His first task will be to head up a new Mycoplasma bovis
particular, farmers need to be meticulous with animal movement Science Strategic Advisory Group.
records and the way they use NAIT. We have already begun “With his background in Ireland, where Mycoplasma bovis is
improvements to make it easier to use.” widespread, Dr. Roche will be ideally placed to lead this work,”
“I’ve also asked MPI to revisit the compensation process and says Damien O’Connor.
they’ve developed a new streamlined approach for those whose
animals are culled, to enable a substantial payment within a matter
If you have any concerns regarding Mycoplasma bovis or
of days.”
would like further information on the Government response,
MPI has also bolstered its response team, adding 50 more staff, MPI’s website has detailed factsheets and background.
a new Field HQ and a Science Adviser. Alternatively, please call your Fonterra
An extra 25 Incident Control Point (ICP) managers are now Area Manager or the Service Centre.
onboard with a further 25 to be trained in coming weeks. They will
work one-on-one with affected farmers, supporting them with
information and advice on the practical aspects of the controls.
Fonterra Farm Source >>> June 2018
4
How to keep your newest
stock safe this season
Dairy NZ
A year ago, many farmers had not heard of I know calving can be stressful at the best of times. So, if you
Mycoplasma bovis: now its changed the way we need any advice or support, don’t hesitate to reach out to your
local vet, DairyNZ consulting officer or the Rural Support Trust.
think about on-farm biosecurity. We’re ready and willing to help.
As we enter the calving season, it also means taking extra
precautions to protect your calves.
While the biggest risk for spreading M. bovis is through cattle
coming into direct contact with other infected cattle, calves face
the added risk of contracting the disease by consuming milk from
infected cow.
As a vet, my advice to mitigate the risk is to get as much
information as possible when buying calves or milk. This can be
a challenge with privacy laws, and we have to rely on honest and
open communication with one another.
When sourcing milk to feed calves, calf milk replacer powder,
pasteurised milk and acidified milk pose the lowest risk of
containing M. bovis bacteria.
However, if you are sourcing milk from another farm or farms
for feeding calves avoid using discarded milk from ill cows
receiving treatment (even if it has been acidified), as they’re
more likely to shed M. bovis into their milk than a healthy cow.
Acidification with citric acid to a pH of 5 for eight hours or to a
pH of 4 for one hour does kill M. bovis bacteria. However, if milk
drops below a pH of 4 it becomes progressively unpalatable to
calves and they will refuse to drink it. If you’re interested in this
option, I recommend discussing it with your vet beforehand.
There is also a misconception that adding potassium sorbate
preservative or yoghurt bacteria to milk makes it safe to feed.
These do not consistently kill M. bovis in the required timeframe.
If you’re looking at buying calves, the fewer sources the better.
It’s also a good idea to deal directly with sellers and avoid
saleyards where cattle mixing can occur. Ask for M. bovis test
results and cow and calf health on farm for the past two seasons.
The M. bovis Pre-Purchase Checklist, available on the DairyNZ
website (www.dairynz.co.nz/mbovis), is handy to ensure you cover
all your bases.
Remember to purchase only calves with NAIT tags in their ears
and record all movements.
Ask your transporter to avoid mixing calves with other cattle in
holding yards or on the truck.
When your calves arrive on farm, keep them separate from your
main group for seven days and monitor them for signs of disease
before mixing them with other stock.
Fonterra Farm Source >>> June 2018
5
$6.90-6.95: THE THIRD
HIGHEST PAYOUT THIS DECADE
Last month your Co-operative increased the total and late in the year, making it difficult for these higher costs
forecast cash payout to $6.90-$6.95 per kgMS, to flow through into our sales for this financial year."
“We can see our sales margins are not where they need to be
which is the third highest payout this decade.
at this point in the year to achieve our original earnings forecast.”
It comprises:
At the same time as providing an update on the forecast
• $6.65 per kgMS 2017/18 season forecast Farmgate Milk Price – payout, the Co-operative reported some headline figures on its
an increase of 20 cents; and performance for the first nine months of the 2017/18 year.
• forecast full year dividend range of 15-20 cents per share – Revenue of $14.8 billion was up seven per cent – however,
down from a forecast range of 25-35 cent per share. volumes were down five per cent to 16 billion LMEs and gross
Fonterra Chairman John Wilson says the Co-operative’s strong margin was down to 16 per cent from 18 per cent for the first nine
milk price reflects a global supply and demand picture that months of the year, compared to the same period last year.
continues to be positive for farmers. Commenting on these results, Mr Spierings says “in the first
“Global dairy prices have risen since the start of the season. half of the year we felt the impact of the record low inventory
The price of Whole Milk Powder is particularly strong due to followed by the low spring milk collections in New Zealand due to
continued growth in demand from China and across Asia.” difficult weather conditions. This meant our sales teams had less
Mr Wilson says the higher milk price is good news for farmers product to sell. We were expecting our earnings to be weighted
who are still recovering after the two years of lower milk prices in in the second half of the year and this has not transpired due to
2015 and 2016. However, the higher milk price puts pressure on the rapid rise in our input costs late in the season into our
Fonterra’s earnings in a year which is already proving challenging value-add business".
due to the payment to Danone and the impairment of the “Unfortunately, we have not delivered the third quarter results
Co-operative’s Beingmate investment. we had planned. With the increase in the price of milk fats we
“As a result, we have revised our forecast normalised earnings have also seen continued demand towards products with a lower
per share guidance range down to 25-30 cents per share and our fat composition, sustained competition in Greater China’s
forecast dividend range for the full year down to 15-20 cents per foodservice market and further constraints in some Asian
share.” markets limiting our ability to pass through costs,” says Mr
Spierings.
“The business’ revised earnings forecast is disappointing for our
shareholders and unitholders." “While the strong milk price is good for our farmers, it does
make the remainder of the year challenging for the business.
Chief Executive Theo Spierings says the earnings challenge that
We remain committed to maximising the total payout for our
comes with the higher milk price is compounded by the timing
farmers and value for our unitholders by delivering the best
and significance of this particular increase.
possible earnings.”
“There is always a natural lag in being able to pass through an
increase in our input costs. But this increase has been both rapid
FIRST NINE MONTHS OF THE YEAR: HEADLINE FIGURES
FROM INGREDIENTS AND CONSUMER AND FOODSERVICE
INGREDIENTS
• gross margin of 10 per cent – in line with the same period last year, despite the higher input costs
• volumes in Ingredients down 5 per cent compared to the same period last year
CONSUMER AND FOODSERVICE
• gross margin of 24 per cent, down from 28 per cent
• growing sales volumes across three of our four key regions – Greater China, Asia and Latin America
• a reduced full-year forecast of 130 million additional LMEs, down from 400 million
Fonterra Farm Source >>> June 2018
6
Owners talking Co-op flexibility
As owners, what would you change to make it
Chris and Amy Know
easier for farmers to join the Co-op or for current Tariki, Taranaki
les farm,
farmers to plan farm succession? That’s
been the topic of discussion as the Board of
Directors crisscrossed New Zealand over the
last month meeting with a number of you in
farm sheds, community halls and Farm Source
stores.
Arohena farmer Nick Prendergast attended one of the
meetings and says it was very informative and he appreciated
the constructive contributions from those in attendance.
“At our meeting, there was a focus around what the Co-op
needs to do moving forward. One of the biggest hurdles these , Maketu
Manag ment Ltd
days for people wanting to join the Co-op is buying shares. A lot Te Arawa
of young people don’t have a lot of equity and sharing up can be
a hurdle, so it was important to hear that the Co-op is not only Owners are being asked to give feedback around what they like
aware of this issue but also actively working to address it.” or don’t like about these existing financial tools and share-up
"The thing that struck me the most when listening to John contracts. Discussions are also ongoing around the value of being
Wilson was that without an avenue for young farmers to come on a shareholder and how owners think it should be explained to
board there is no succession and without succession there will be potential farmers.
no Co-op. I was pleased to hear the Chairman discussing and Some of you have shared reasons why some farmers may
looking at ways to fix this issue, it shows they’re really working choose to leave the Co-op, including the short term need to
towards a strong future.” release capital tied up in shares. Directors are asking owners what
These discussions flowed from the recent My Connect the non-negotiables might be when sharing up or sharing down.
Conference in Auckland, where more than 600 farmers discussed These discussions will continue over the coming months. If you
ways to make sharing up and succession easier. As part of the would like to participate in, please contact your Area Manager.
discussions, new financial tools including the Contract Fee for
Units, Reward Dollars for Shares and Strike Price Contract were
highlighted as the sorts of flexible tools which could help attract
and retain farmers.
Plenty
, Opotiki, Bay of
Ian Brown’s farm
Kaharoa
- Chris Ha
worth &
Christine Ste
vens
Bruce & Judy Woods’ farm,
Edgecumbe
Fonterra Farm Source >>> June 2018
7
HIGHER FAT VALUE REFLECTS
BUTTER’S RETURN TO FAVOUR
The Valued Component Ratio of our payment
for milk reflects the value of fat versus the value
FONTERRA PAYS FARMERS
of protein.
ACCORDING TO THE
With fat back in favour and global prices rising, this changing
value is reflected in the VCR for the coming season which values FORMULA
fat at 30 per cent more than protein.
a + b +/- c
The VCR for the coming season is 1.30 up from the 2017/18 value
of 0.89. That’s a marked shift from times when protein has been a = cents per kg of milkfat
two to three times more valuable than fat.
b = cents per kg of protein
The 2017/18 season saw fat demand and prices surge on GDT
events last year as butter came off the “public enemy #1” list and c = volume adjustment
back into nutritional favour. The value of milkfat (a) and the value of protein (b) is
Dairy fat’s return to favour has been supported by nutritional calculated using the Milk Price and two parameters:
research by Harvard University which showed butter did not the Valued Component Ratio and the Component
harm health, as well as consumer demand for more natural and Composition Ratio.
less processed foods. Fast food giant McDonalds’ switch from
margarine to butter also helped propel demand and pricing, The Value Component Ratio (VCR) reflects the relative
while China has also emerged as an enthusiastic market for New returns of fat and protein in the milk on the international
Zealand’s best butter. market, based on inputs into the Milk Price.
While fat’s value is rising and it is valued over protein in the The Component Composition Ratio (CCR) is the relative
Valued Component Ratio for the 2018/19 season, our Co-operative quantity of fat versus protein received by the Co-op.
is continuing to back both components of milk in a healthy diet to
generate the best returns for our farmers. The Volume Adjustment (c) is used to adjust individual
farmer payments depending on the milk solid content of
NZMP, for example, is capitalising on the increased awareness of their milk multiplied by a standard litre charge.
the importance of dairy protein in health and well-being and its
value in applications ranging from sports nutrition to THE MILK PAYMENT PARAMETERS HAVE BEEN
healthy ageing. SET FOR THE 2018/19 SEASON:
Our SureProtein™ range of protein-based solutions, for example, • The VCR is set at 1.30, and an estimated CCR of 0.7762
is used in products as diverse as protein-enhanced yoghurts, will be used. For the 2018/19 season the price paid
beverages and bars, medical and paediatric nutrition products, for a kgMS of fat is higher than the price paid for a
and a wide range of dairy food products and snacks including kgMS of protein. Selling prices of milk fat have been
processed cheese and bakery items. increasingly strong in recent seasons, compared to the
The ‘Active and Healthy Ageing’ category is also growing rapidly selling prices of protein as represented by prices on
and reflects people’s desire to stay healthy and active as they age. GDT.
• Volume adjustment payments for the Seasonal
Equation will be based on an estimated company
average milk solids content of 8.94% and 2.68c/litre.
For the Peak Equation, we will apply an estimated
company average milk solids content of 8.59% and
1.19c/litre.
• The Capacity Adjustment Payment for the 2018/19
season is $0.61 per kgMS. Capacity Adjustment
recognises the cost of processing farmer’s peak milk
supply. It is based around the fact that the Co-op
needs more tankers and factories to collect and
process a given volume of milk supplied by farmers
with ‘peakier’ curves than farmers with ‘flatter’ curves.
Capacity Adjustment aims to provide an equitable
distribution of the Co-operative’s processing costs
across all farmers.
Fonterra Farm Source >>> June 2018
8
FONTERRA FARMERS
NZ DAIRY INDUSTRY
The Co-op’s farmers have a long history of success
in the New Zealand Dairy Industry Awards and
that tradition continued at the 2018 national finals
on May 12.
In front of nearly 550 people at Invercargill’s ILT Stadium,
Fonterra farmers won two of the three main titles as well as a
brand new award – the Fonterra Farm Source Responsible
Dairying Award, created and sponsored by Fonterra Farm Source.
Presented by Fonterra Chairman John Wilson, the winners of
the new award were Matamata Farmers Wynn and Tracy Brown.
Open to all New Zealand dairy farmers, the award recognises
farmers who demonstrate leadership in their approach to
sustainable dairying, are ambassadors for the industry and are
respected by their farming peers and their community.
2018 NZDIA Share Farmers of the Year Daniel and Gina Duncan
Dan and Gina are 50:50 sharemilkers for the Pouto Topu A
Trust, milking 1020 cows on the 460 hectare Pouto property.
Both hold Bachelor of Applied Sciences degrees majoring in Rural
Valuation and Management, with Dan holding a double major
including Agriculture.
The judges said Dan and Gina can be summed up in three
words – passionate, professional and committed. “They epitomise
living the dream. They left secure jobs as registered valuers and
made the career change to dairy farming, and they’re excelling at
it. They’re the complete package.”
2018 Fonterra Farm Source Responsible Dairying Award
Edward and Tracy Brown
Wynn and Tracy own a 320 hectare 700-cow farm near
Matamata, with a further 30 hectares leased from their
neighbour. Their property bears the name “Tiroroa”, which means
‘extensive view’ or ‘view to the future’.
“Our aim is to run an economically and environmentally
sustainable dairy farming business, maximising production while
minimizing footprint,” say the couple. “We like to take the meaning
of Tiroroa into consideration with all our decision-making."
“Sustainable farming is about ‘walking the walk’ not just NZDIA Dairy Manager of the Year Gerard Boerjan
‘talking the talk’. It’s about what you do when no-one is looking,”
say the Browns.“It’s also about not just living for the here The couple have clear and realistic goals and gave an
and now, but thinking for the future and those who will outstanding presentation which flowed and kept the judges fully
come after you.” engaged. “They managed to get that information across to us in a
With 29 finalists from a possible 33 for the other three main way we could understand and follow,” says Share Farmer head
awards, Fonterra farmers were sure to put in a good showing. judge Kevin McKinley.
That proved to be true with Northland’s Dan and Gina Duncan “They have a good work life balance. They still work hard but
winning the New Zealand Share Farmer of the Year title and they find the time to pursue interests off-farm such as sport,
Takapau’s Gerard Boerjan named New Zealand Dairy Manager and time with family and friends,” says Kevin.
of the Year.
Fonterra Farm Source >>> June 20189
DOMINATE 2018
AWARDS
Co-op farmers dominated the Share Farmer category, also
winning the other podium places. Papakura 50:50 sharemilkers
Chris and Sally Guy were second with Putaruru contract milkers
Steve Gillies and Amy Johnson third.
Fonterra suppliers also scooped first, second and third
placings in the Dairy Manager of the Year category, with
Hawke’s Bay/Wairarapa representative Gerard Boerjan taking
the title.
Gerard has successfully farmed in Portugal and Brazil and is
currently Farm Manager for Trevor Hamilton on his 553 hectare
Takapau property.
Dairy Manager head judge Mary Craw says Gerard targets
excellence in everything he is involved with.
“He has great experience as a manager of people, a great
passion for working with people in a large team environment
and excellent attention to detail,” she says. “Everything is well
Wynn and Tracy Brown
documented, he covers health and safety to an exceptional
level and his financial understanding is of the highest calibre." The New Zealand Dairy Trainee of the Year winner was
“He really cares about his staff, the environment, his cows, Simone Smail from Southland with Central Plateau's Donna
what he grows and how he grows it, but he also understands very McKinley second.
clearly that it’s a business he is running and he showed us that.” The New Zealand Dairy Industry Awards are supported by
Will Green from Canterbury was second in the Dairy Manager national sponsors Westpac, DairyNZ, DeLaval, Ecolab, Federated
category with Southlander Jaime McCrostie third. Farmers, Fonterra Farm Source, Honda Motorcycles, LIC,
Capping off a great night for Co-op suppliers was Quinn Meridian Energy and Ravensdown, along with industry partner
Youngman winning third place in the Dairy Trainee of the Year PrimaryITO.
competition.
Quinn works on David Dean’s 245 hectare, 600-cow farm in
Mercer with the judges describing him as the quintessential
young farmer who is a quiet achiever.
Wynn and Tracy's wetland area on their Tiroroa farm
Fonterra Farm Source >>> June 201810
OUR CHILE CONNECTION
This year celebrates the thirtieth anniversary of our Last year an expansion at the Los Lagos site increased cheese
investment in dairy company Soprole. production by 40 per cent while also bringing in advancements in
food safety. Prolesur’s main domestic customer is Soprole but
Headquartered in Santiago, Soprole is the Co-op’s oldest Managing Director Juan Carlos Petersen, says they’ve secured
offshore investment and is Chile’s best known corporate brand other big clients.
outside of Coca Cola.
“The Chilean Government is also a big customer. We produce
Six million Soprole products are milk blends for the National Health Service for people at different
consumed every day and it holds stages of life such as childhood, elderly and during pregnancy.”
number one or two positions in every
dairy category. Last year Soprole Prolesur now sells products in more than 20 countries around
accounted for 29 per cent of retail sales the world, and Juan Carlos says much of this is because they are
of yoghurt and sour milk products part of the Fonterra network.
Managing Director of Soprole Valeria Southern Chile is well placed for growth in milk production,
Flen, says the company’s performance Juan say the region’s climate and soil make it fit for purpose.
Soprole's innovative Uno comes from strong brand awareness, a “We have all the conditions to
kids yoghurt was adapted good distribution network and enhance milk production in a
for a kiwi market long-standing reputation. competitive, sustainable way and with
“We have 30 per cent of Chile’s dairy the best quality.”
market. We supply 33,000 customers and more than 300,000 Chief Operating Officer Farm Source
tonnes of consumer dairy products passing through our Miles Hurrell agrees “Chile has a
distribution centre every year.” similar climate to us and we can share
Valeria says the company is also proud of its track record some of the knowledge and expertise
of innovation. we have to help with their local
production.
"We work hard to stay ahead of the game through strong
product development. We’ve launched an average of 15 new “As well as helping with supply for Soproles zero lacto
products every year since 2010.” Soprole, milk production in Chile also chocolate milk is just
contributes towards our global milk one of the companys
Some of those innovative products have also been adapted to pool strategy, which helps strengthen innovative products
suit the New Zealand market. For example Anchor Uno – one of our position on a global scale.”
NZ’s most popular low sugar children’s yoghurts is based on
Soprole’s Uno yoghurt. As part of our Farm Source business, Prolesur is also looking
at ways to grow its relationships with farmers.
A HISTORY OF INVESTMENT
MILK POOLS
The Co-op’s operations in Chile began in 1988 when the then
New Zealand Dairy Board (NZDB) became the majority shareholder The milk produced by Prolesur complements our New Zealand
in Soprole with a 56.85 per cent shareholding. milk. Chile has 64 trade agreements and Managing Director of
Prolesur, Juan Carlos Petersen says this helps with market access.
Twenty years later, the Co-op purchased an additional 42.6 per
cent share, giving us a total shareholding of 99.4 per cent. Returns “Chile is in a good position to help Fonterra access markets that
from the investments flow back to New Zealand farmers through New Zealand can’t access so freely, including many in Latin
our dividend. America and Russia.”
In 1990 Soprole restructured operations and divided the In addition to opening up new markets, producing milk in
company into two. This was the beginning of Prolesur a Chile also helps to secure larger orders from some of our bigger
manufacturing subsidiary which is 86.2 per cent owned by customers as it lessens
the Co-op. the risk from buying
from one country.
In 2016 Soprole and Prolesur adopted separate strategies giving SOPROLE
Prolesur its own management team and operating strategy. CHILE AND ITS BY NUMBERS
PROLESUR – A GROWING PRESENCE DAIRY INDUSTRY
Close to 18 million
• 30% market share
Prolesur is located in Southern Chile, where 86 per cent of local
dairy is produced. people live in Chile. Its • 300,000 tonnes of
GDP is $247 billion USD dairy products annually
The company has two processing plants which have both and it is one of the
expanded over time. They produce powder, whey, cheese, WPC 35
and deproteinised whey.
most economically and • 33,000 customers
socially stable countries
In 2004 the completion of a new cheese line at the Los Lagos in South America. • 6,000,000
plant made it the largest exporter of dairy products in Chile with a The dairy industry is products consumed every day
monthly production of 1,200 tonnes. worth around $4.7 billion
USD and approximately
Fonterra Farm Source >>> June 201811
San Miguel Demonstration Farm
2.5 billion litres of milk are produced in Chile each year from David Vera has just completed the programme and says the
15,000 farms. Soprole and Prolesur collect around 500 million experience has been invaluable.
litres or 23 per cent of the total Chilean production. “It’s been amazing, I’ve had so many new opportunities like
It’s considered one of the most open markets in the world and milking by myself and learning how to be more efficient with my
provides a gateway to the rest of South America. Fresh milk time. The farm I used to work on in Chile had just as many cows
produced in Chile helps us enter markets that are either highly as the farm I worked on here, but in Chile we had five staff, and
protected by trade tariffs, or are not economical to export to from here in New Zealand there are just two of us, farming here is
New Zealand due to travel costs. For example, Chile has quality much more efficient”
trade agreements with nearby countries like Mexico and the USA.
It has trade agreements with 64 countries, including the
Trans-Pacific Strategic Economic Partnership – P4. This agreement
is the first trade agreement that links Asia, the Pacific and the
Americas, (New Zealand, Chile, Singapore and Brunei Darussalam)
and is the first and only
trade agreement New
PROLESUR BY Zealand has with a Latin
American country. Since
NUMBERS the agreement came into
force in 2006 exports to
• More than 200 farmers. Chile have grown to
$128 million, with dairy
• 2 plants.
in the top three.
• 490 employees. Fonterra’s Dairy
• 1 demonstration farm. Development
• 300 MILLION programme
litres of milk per year. Fonterra’s Dairy
Development programme
• Volume sold (2017) partners with Prolesur to
74,271 TONNES. bring young Chilean
farmers to work on a New
• PRODUCTION OF: Zealand farm for a year.
Cheese, butter, milk powder, Last year, 11 Chileans
milk blends and whey. participated in this
programme and this June,
• CUSTOMERS:
17 more will travel to New
Soprole, Government of Chile
Zealand to experience life
and other domestic and
on one of our farms.
export customers.
Chilean farmer David Vera working on a farm in Atiamuri in South Waikato
Fonterra Farm Source >>> June 201812
Splitting FEI Demerit Allocations
The new Fat Evaluation Index (FEI) Grading System Ultimately, whatever allocation method is chosen, the most
comes into effect at the beginning of September. important aspect is that a conversation happens between Farm
Owner and Sharemilker.” In order to support the unique allocation
We recognise not all farm systems provide the sharemilker or of FEI testing fees and demerits, your Co-op requires permission
contract milker with complete control over farm inputs such as from the authorised person associated with the farm.
feed, which has a significant influence on the FEI levels of milk.
Therefore, owners may choose to share the cost of any testing
fees or demerits incurred as a result of the FEI Grading System.
YOU CAN DOWNLOAD THE FORM ON FARM SOURCE
Manawatu Sharemilker and Federated Farmers Sharemilkers’ ONLINE, AND EITHER...
Section Chairperson, Richard McIntyre, says he’s pleased to see
Fonterra supporting the separation of the allocation of any Fat SCAN and send to sharesandpayments@fonterra.com
Evaluation Index demerits and testing charges through their
payments system. FAX a copy to 09 374 9451, or
“Both the Share-milker and Farm Owners sections of Federated GIVE it to your Area Manager
farmers have worked together to recommend what a fair
allocation would be. Our recommendation is to align FEI demerits SEND by post to PO Box 459, Hamilton 3240
and testing charges in the same portion as the milk cheque
allocation. While the Farm Owner sets the feed plan, it is up to To ensure demerits can be allocated appropriately
the Sharmilker or contract Milker to implement it. before the start of the FEI Grading System, please send
your Demerit Allocation Form to the Co-op no later than
“The outcome of feeding supplement is typically milk
30 September 2018.
production, therefore it makes sense to share the potential costs
in the same proportion as the reward.
MyMilk a stepping stone to Fonterra
More than three years after its launch, MyMilk has “It’s a very exciting time at MyMilk at the moment and we can’t
signed 111 farmers up with the aim of eventually wait for the commencement of the 18/19 season,” says April.
transitioning them to fully share-backed farmers.
Fonterra launched MyMilk in response to valuable new milk
availability and the high level of unshared competition in the
South Island.
The milk sourcing company is focused on the three key
priorities of attracting, retaining and transitioning new milk across
to the Co-op.
The decision of 40 farms to sign with MyMilk this season
represents a lot more valuable milk coming through Fonterra’s
plants. These signings include new conversions, win-back milk
from competitors and first-time dairy farm owners.
General Manager April Pike says, “Over 60 per cent of our
signings are new milk into the Co-op.”
While MyMilk suppliers can supply for up to five seasons, seven
farms have already decided to join the Co-op ahead of the end of
their fifth season, demonstrating that the strategy of transitioning
farms into the Co-op model is working.
Collectively MyMilk farmers have now spent more than $3
million at Farm Source Stores, benefiting from the low prices
afforded to Co-op shareholders while their Farm Source dollars The My Milk team
earned remain locked until they join the Co-op.
Fonterra Farm Source >>> June 201813
NOTE FROM THE SHAREHOLDERS’ COUNCIL
Council has been concerned that Fonterra Farmers
are losing sight and connection with the "why" of
what we do. This needs fixing and who better to do
it than us as the owners of the Co-op?
That work is underway with our review of our Purpose and
Vision which we introduced at the My Connect Conference in May.
Since then we have used the information gathered at the
Conference and the online survey results to influence the
current phase of this project. You can expect Councillors to
connect with you through June and July to get some deeper
views on what a more meaningful Purpose and Vision for our
Co-op should look like.
There is also an opportunity for you to contribute online via the
Communities page on My Connect and we encourage you to do so.
As our Co-op's current and future owners it is up to all of us to
ensure our Purpose and Vision build strong belief and, much like
our product, extend from our farms to the world.
I also want to reiterate that we’re not rushing things, we will
take the information provided, refine it and seek further feedback
from you to make sure we’re on the right track.
We are very aware that the Report will be a point of discussion
If we do this right we can go a long way to ensuring a strong,
and as such our focus is on ensuring it is a robust analysis that can
enduring Co-op for us and future generations and we are looking
stand up to the scrutiny.
forward to continuing the conversation with you as we work
together to build something meaningful for our Co-op. Dairy Industry Restructuring Act Review
Fonterra’s performance The DIRA is quite rightly of very high importance to Farmers and
Council will take a leadership role in submitting on behalf of
While the recent announcements around the lift in Milk Price
Fonterra Farmers.
were positive, your Council is frustrated with the downgrade in
forecast earnings and dividend which is below what shareholders In terms of our submission we have undertaken to work
expect of our Co-op. alongside Federated Farmers to ensure alignment on key issues.
While there have been underlying events that have contributed We also encourage our fellow Fonterra Farmers to participate in
to this, quite simply earnings need to improve if we are to the process and have your say on the DIRA’s raw milk regulations.
maintain confidence that our Co-op can deliver a strong dividend
on top of the market-driven Milk Price.
Fonterra elections
As part of our Guardianship role Council is very focused on this
Of concern is the slowdown in the Foodservice business and
year’s Fonterra Elections and most importantly ensuring you are
ongoing poor performance of the Oceania business which has had
provided with all the information required as soon as possible.
a significant drop. Management has a plan to turn this around
quickly and we look forward to seeing this bear immediate results. I ask that you keep an eye out for information via the usual
channels and if you have any questions on this please contact your
At our Interim Results review with Board and Management we
local Councillor and we will make sure you get an answer.
noted the very ambitious targets they had laid out for the second
half of the year. While we support the business to act ambitiously My Connect
the downside of this is a loss of confidence when these targets are
not met. Feedback from the 600+ Farmers who attended the Conference
was overwhelmingly positive. They said speakers provided valuable
We are looking to see some significant improvement as we messages, the Conference connected them in a meaningful way
approach the end of the financial year. and gave them some real confidence in their Co-op’s direction of
travel which, given the current environment, is incredibly valuable.
Review of Fonterra’s historic performance
We are reviewing the programme to ensure it has structures in
As part of our monitoring function Council has commissioned a
place that will enable us to reach the goals we set for it.
report which will consider Fonterra’s value creation for Farmers
relative to our investment since the Co-op’s inception. If you have yet to do so I encourage you to sign up to the
programme – doing so will enable you to connect to your Co-op
At the time of writing we had finalised the Terms of Reference
in the ways that best suits you.
and were meeting with external agencies to determine their
suitability for the project. Kind regards,
Duncan
Fonterra Farm Source >>> June 201814
SPOTLIGHT ON
Waikato is the heart of New Zealand’s dairy
production. Dairy contributes $2.4 billion to MORRINSVILLE
Waikato’s local economy annually and employs The beginnings of the Morrinsville site go back to 1902 when
13,700 people. the small creamery had only eight suppliers. It became the
Morrinsville Co-operative Dairy Company in 1922 and the
Upper Waikato spans from Pokeno in the north to Cambridge world’s first automated dairy factory in 1966 producing about
in the south and is home to four of our manufacturing sites – two tonnes of milk powder per hour.
Hautapu, Morrinsville, Te Rapa and Waitoa.
The site was mothballed in 1999 but then recommissioned in
2002 to meet an increasing market demand for whole milk
powder. Today the site’s two milk powder dryers have a peak
HAUTAPU processing capacity of 50,000 litres of standardised milk per
Established in 1886, our Hautapu site has been manufacturing hour, and the butter plant makes around 18,000 tonnes of
products for more than 120 years and at peak processes butter a year.
150 tanker loads of milk each day.
In 2015 Hautapu opened its $11 million upgrade to its lactoferrin
plant. The upgrade enabled the Co-op to double our capacity to
produce the high value protein ingredient lactoferrin – also
known as pink gold.
Lactoferrin is highly sought after in Asia and is used in a
number of products from infant formula through to health
foods and yoghurt. Hautapu is also our only organic cheese
producer and home to the headquarters of our New Zealand
protein and cheese technical teams.
QUICK FACTS
• Milk processing capacity (peak) –
1,200,000 litres per day
• Cream processing capacity (peak) –
425,000 litres per day
• Powder products
- Whole Milk Powder
- Fortified Whole Milk Powder
QUICK FACTS - Skim Milk Powder
• Milk processing capacity (peak) – 4.2 million litres per day - Organic Milk Powders
• Employs 300 staff • Butter products
• Separate plants for casein, cheese, milk treatment, - Bulk in 25kg (salted, unsalted and organic)
whey protein concentrate, lactoferrin, hydrolysate,
- Cans 12oz, 16oz and 2kg
milk protein concentrate and lactose
- Tubs 250g and 500g semi-soft
Fonterra Farm Source >>> June 201815
UPPER WAIKATO
TE RAPA In 2006 the powder plant’s central packing Facility was installed
with highly automated packing lines. Just two operators and a
Located in the heart of the Waikato, Te Rapa is Fonterra’s largest
supervising operator now run the five packing lines and the
manufacturing site and recently celebrated 50 years in
robot palletising area. Most recently Te Rapa received a $20
operation. The plant is one of the cornerstone sites for our
million dollar upgrade to meet a growing demand for butter and
foodservice business and has undergone significant investment
cream cheese. At peak Te Rapa’s four milk dryers can process
through the years.
1,000 metric tonnes of milk per day and accounts for about 12.5
per cent of the Co-op’s annual milk powder production.
QUICK FACTS
• Milk processing capacity (peak) – 7.5 million litres per day
• 500 employees
• Four dryers – the largest processes 23.5 metric tonnes per hour
• Eight cream processing plants
• 41-hectare site
• Fleet of 52 tankers
WAITOA largest UHT processing site in New Zealand, producing more than
Established in 1902, Waitoa is one of Fonterra’s leading infant 250 million litres of UHT cream and milk per year. Around $162
formula and nutritional ingredient manufacturers. The plant million has been invested in UHT production at Waitoa as is part of
produces 97,000 tonnes of milk powder every year and is the our strategy to continue to move more of our farmers’ milk into
only Fonterra site in New Zealand to make organic whole and higher returning products and meet a growing demand for things
skim milk powder. like whipping cream.
The site is also responsible for making and filling the cartons for our
QUICK FACTS Milk for Schools programme. Around 20 million 200ml cartons are
• Milk processing sent from Waitoa to more than 1420 schools around New Zealand
capacity (peak) – every year.
3.5 million litres per day
• 500 staff QUICK FACTS
• More than 80,000 cartons of UHT milk and cream
WAITOA UHT are produced every hour for global markets
Six years ago our Waitoa • More than 100 million litres of milk processed each year
UHT plant was nothing • Five UHT processing lines which can each produce
more than an empty up to 24,000 UHT packs an hour
paddock, today it’s the
DEPARTMENT OF CONSERVATION PRAISES PLANTING EFFORTS.
Lake Ruatuna is a peat lake which lies just outside Ohaupo.
It’s being used by the living water project as a trial site for sediment
traps. The plants are needed the keep the traps in place.
DoC worker Michael Paviour said the day was one of the best
planting events he has ever been to. “We had a great crew that had
a great vibe. Everyone wanted to be there and we had a broad range
of people that made it a really great day to be involved with.”
Wendy Beckett, who works in the London Street office volunteered
with her husband. “We enjoyed getting stuck into something that
will make a difference to the environment and hearing first-hand
from DoC about the significance of what we were doing”.
The Ruatuna planting team
The event was part of the Co-op’s ‘Getting Dirty to Clean up’
A big day of planting at Waikato’s Lake Ruatuna has earned praise project. It aims to bring people and the community together to
from Department of Conservation staff. Around 25 staff and locals build their networks, while showing the Co-op’s commitment to
gave up a Saturday to plant 150 native plants around the lake. improving waterways is genuine.
Fonterra Farm Source >>> June 201816
SAY CHEESE!
How our Saudi Arabia factory is cashing in on the
Middle East and Africa’s growing love for cheese
The factory manufactures products tailored to the local tastes
of people in the Middle East and Africa. This includes recombined
feta cheese, processed cheese in a glass jar, processed cheese
products. blocks, and our newly launched soft style cream cheese, which
In a desert country sandwiched between the Red Sea and the is recombined using the highest quality of natural cheese from
Persian Gulf, hundreds of workers are busy packing and blending New Zealand.
milk powders, and processing cheese for the Middle East and Zameer says this latest product is one example of how a
Africa regions. premium consumer and foodservice product helps us to deliver
The Dammam factory processes 38,000 metric tonnes – or 38 more value out of each drop of our farmer’s milk.
million kg – of dairy a year, and employs more than 200 people. In “Innovation is a high priority for us. Building on the reputation of
the last five years production has grown around 15 to 20 per cent New Zealand dairy ingredients, we process and create tailored
and that demand is showing no sign of slowing. products for the region something we can only do because we
Manufacturing Manager of Central Asia Middle East and Africa have assets like the Dammam factory.”
Zameer Haneef says the Middle East and Africa regions have
always been important markets for the Co-op.
“The demand for high quality dairy is increasing every year. The
Middle East and Africa region is very diverse, with many emerging
markets. We already have a presence with our manufacturing
facility in Saudi Arabia and we are committed to growing demand
across all our markets.”
The Dammam factory was established 24 years ago as a joint
venture, but the Co-op brought out the local partner - Saudi Dairy
and Foodstuff Company - in 2010 to be able to better meet the
area’s growing demand for New Zealand dairy. Inside our Saudi Arabia plant
10,000 BAKERS VIE FOR
CHINA’S BEST CAKE AWARD
Anchor Food Professionals’ annual China’s Best “Online campaigns and the use of high-quality ingredients allow
Cake Award has again proved its value as a way to our customers to build their brand awareness.
At the same time, such activities help to teach consumers the
engage with customers and consumers with a difference between non-dairy cream and dairy cream, that dairy
41 per cent increase in participating stores. cream not only brings better taste, it is also healthier.” said Jim
Ruan, Acting Vice President of Foodservice. Winners in the
More than 10,000 stores from 306 cities across China
prestigious competition are announced at the annual Bakery China
participated in the competition, now in its third year. The award
exhibition
not only showcases Anchor products in baking, but also provides
competing stores with the chance to showcase their skills to A leading industry event in Asia Pacific where Anchor Food
consumers whose votes determine which bakers take out the range Professionals hosted some 200 customers to the awards ceremony.
of prizes. At the exhibition, our Foodservice team presented itself as a
During the voting 'dairy expert’ by showing different ways our products can be used
period, nearly 40 key and providing comprehensive solutions for our customers.
customers took to The team introduced the full range of our products led by Anchor
social media to promote whipping cream. Professional chefs demonstrated the use of
their own cakes, again Anchor products on the site, allowing customers to learn about the
highlighting the Anchor overall strength of our products across a variety of categories such
brand. The competition’s as baking, drinks and casual dining.
influence meant more than
90 media reported on it.
Thousands flock to China's best cake award
Fonterra Farm Source >>> June 2018You can also read
