Fonterra’s Huge Profit Jump as Milk Prices Surge!

Discover how New Zealand’s Fonterra Co-operative is thriving, raising its 2024 earnings forecast amid strong dairy demand. Learn about the significant increase in farmgate milk prices to NZ$7.00-NZ$8.00/kg and a boosted earnings outlook, with a first-quarter profit surge of 61.7% reaching NZ$346 million.

Fonterra Boosts 2024 Earnings and Milk Price Forecasts Amid Surging Demand, Reports 61.7% Profit Jump

New Zealand’s Fonterra Co-operative has raised its fiscal 2024 earnings and farmgate milk price forecasts due to increased demand for dairy products, particularly from significant importers. The new farmgate milk price range is NZ$7.00 to NZ$8.00 per kilogram of milk solids, up from the previous NZ$6.50 to NZ$8.00. This change follows a rise in Global Dairy Trade prices. The company also boosted its 2024 earnings per share projection to between 50 and 65 NZ cents, anticipating a robust interim dividend.

Fonterra’s first-quarter profit soared by 61.7% to NZ$346 million, driven by higher margins in its main sales channels: ingredients, food service, and consumer products. CEO Miles Hurrell expects these margins to remain high in the first half of the year, with a tightening anticipated in the second half.

About Fonterra Dairy

Fonterra Co-operative Group, a leading player in the global dairy industry based in New Zealand, is renowned for its financial achievements and strategic initiatives. Originating from a merger in the early 2000s, Fonterra has grown into one of the world’s largest dairy exporters. Central to its ethos are quality and sustainability, supported by a network of over 10,000 farmers who are not just suppliers but shareholders. Despite its global presence in over 140 countries, Fonterra maintains a keen understanding of local market nuances.

Innovation is key to its operations, with significant investments in research and development to stay ahead in the competitive dairy industry. While facing challenges such as market fluctuations and environmental concerns, Fonterra’s adaptability has been its strength.

Looking forward, the company aims to bolster sustainability, improve efficiency, and expand its global reach, continuing to be a leader in the dairy industry and a symbol of innovation, quality, and resilience.

Top Dairy Producers In The World

Explore the top dairy producers of 2023 in this comprehensive report, featuring a detailed analysis of leading dairy-producing countries and companies. Gain insights into the global dairy industry with key data on production volumes and revenue, highlighting major players like Nestlé, Lactalis, and Dairy Farmers of America. Essential reading for industry professionals and those interested in global dairy market dynamics.

As of 2023, the top dairy producers in the world can be categorized into two main groups: countries and companies.

Top Dairy Producing Countries

European Union
United States
India
China
Brazil

These rankings are based on the overall production of cow milk.

Top Dairy Companies by Revenue

Nestlé (Switzerland)
Lactalis (France)
Dairy Farmers of America (United States)
Danone (France)
Yili Group (China)
Fonterra (New Zealand)
FrieslandCampina (Netherlands)
Mengniu Dairy (China)
Arla Foods (Denmark)
Saputo Inc. (Canada)

Dairy production is crucial globally, providing essential nutrition, economic livelihoods, cultural value, and contributing to food security. Despite sustainability challenges, it remains a key sector, driven by continuous innovation and research.

Smithfield Foods cuts farmers contracts

Explore the latest developments as Smithfield Foods significantly reduces contracts with farmers. Understand the implications for the pork industry, local communities, and the broader market. Stay informed on how these strategic shifts by a key industry player reflect wider economic trends and affect various stakeholders. Get in-depth analysis and expert insights in our comprehensive coverage.

Smithfield Foods to Cut Utah Contracts Amid Market Challenges, Initiates Workforce Transition

Smithfield Foods’ decision to end contracts with Utah farms is part of a larger industry trend. Many food companies are facing similar challenges. High feed costs and changing consumer habits are big factors.

The company’s Utah operations have been significant. But now, Smithfield is focusing on other areas. They want to make their operations more cost-effective. This involves tough choices like contract cuts.

Shane Smith emphasizes the need for these changes. He says it’s vital for staying competitive. The company is committed to supporting its employees during this transition. They are offering help like job relocation and transition assistance.

Go to: Top 10 Largest Pork Producers in the USA – A Comprehensive Ranking

Smithfield’s Strategic Shift: A Ripple Effect Across the Pork Industry and Beyond

The impact of these changes goes beyond Smithfield. It affects the wider community and other businesses. Local farmers and suppliers might feel the effects too. Smithfield’s moves could influence the whole pork industry.

Smithfield Foods is a key player in the U.S. food sector. Its decisions often set trends in the industry. The company’s actions reflect wider economic and market pressures. They also show how big companies adapt to stay ahead.

In summary, Smithfield’s Utah contract ends are a sign of changing times. They show how companies respond to market challenges. They also highlight the impact on workers and local economies. Smithfield is adapting to stay strong in a tough market.

Check out: Top 10 Leading Pork Brands in the World

JBS Commitment to First Mover Coalition for Food

Explore JBS’s commitment to sustainable agriculture through its recent inclusion in the First Movers Coalition for Food. Led by the World Economic Forum and supported by global entities, this initiative aims to revolutionize farming methods to reduce carbon emissions and support the Paris Agreement goals. CEO Jason Weller emphasizes the crucial role of sustainable practices in meeting global food demands while protecting the environment. Discover how leading companies and governments are collaborating to create a more sustainable future in agriculture, with expected outcomes by the second half of 2024.

JBS Joins Global Initiative to Advance Low-Carbon Livestock and Sustainable Agriculture

JBS is now part of the First Movers Coalition for Food. This is a big step for them. They want to help develop livestock that creates less carbon. The World Economic Forum leads this project. The UAE government and 19 companies also help. Their goal is to make farming better and more sustainable. They want to use new methods and technologies. This will help the planet by reducing carbon from agriculture. The members of the coalition have a plan. They want to work together to buy $20 billion worth of eco-friendly products.

Also, this coalition is an extension of another project. The First Movers Coalition for Industry started at a big meeting called COP26. This was in Glasgow, Scotland. US President Joe Biden and the World Economic Forum started it in 2021.

Related: JBS explores Saudi investments

JBS CEO Stresses Crucial Sustainable Agriculture

Jason Weller, who is the CEO of JBS Global, talked about this. He said that how we make food is very important. It helps us meet the goals of the Paris Agreement. These goals are about reducing global warming. At the same time, we need to feed more people in the world. He thinks that farming in a sustainable way is key. It can help us move to a world where agriculture doesn’t harm the environment as much.

Many different groups are part of this coalition. There are big agriculture businesses and other important partners. These include groups of farmers and researchers. Governments are also joining in. Together, they want to improve how we produce food. They aim to use new, sustainable ways of farming. By 2030, they hope to have a big demand for products made this way.

Global Coalition Unites for Sustainable Farming Practices

The World Economic Forum shares more information. The companies in the coalition are very big. Together, they make $2.1 trillion. They work all over the world. These companies know that we need to farm in a way that’s better for the planet.

Starting in December 2023, they will begin working together. The World Economic Forum, the companies, and the governments will join forces. They will figure out how to support and grow this new way of farming. We can expect to see their first results in the second half of 2024.

Read: Top 10 Largest Meat Exporting Country Volumes

JBS Joins First Mover Coalition for Food

Tyson Foods Employees Class Action

Explore the details of the Tyson Foods 401(k) lawsuit where employees allege high fees and mismanagement. Understand the impact on retirement savings and the implications for corporate 401(k) plans.

Tyson Foods 401(k) Lawsuit: Employees Challenge High Fees

Employees of Tyson Foods have taken legal action against the company. They claim its 401(k) plan charges excessive fees. This class action lawsuit was filed in the Western District of Arkansas. It targets Tyson’s retirement plan committee for overcharging. The plan serves 67,276 participants and holds $3.2 billion.

Two major complaints are in the lawsuit. First, the fees are much higher than in similar plans. Second, Tyson did not properly oversee these fees. Compared to lower fees by Fidelity and Vanguard, Tyson’s fees stand out. The lawsuit suggests Tyson could have negotiated better rates.

More company news: Tyson Foods News State of The Art Facility

Tyson Foods and Northwest Plan Services

The goal of the lawsuit is to get back the lost money for all plan members. So far, Tyson Foods and Northwest Plan Services have not responded. Legal experts have noticed more lawsuits like this. They often involve high fees and bad investment choices. This case is important for fair management of 401(k) plans.

The lawsuit reflects a growing concern about retirement plan fees. High fees can greatly reduce retirement savings over time. This case could set a precedent for how large companies manage their retirement plans. It could lead to more transparency and fairness in 401(k) fees. The outcome of this lawsuit could impact many employees and their retirement savings.

https://www.planadviser.com/tyson-foods-employees-allege-excessive-plan-fees/Tyson Foods lawsuit: Employees claim high 401(k) fees, mismanagement. Impact on retirement savings & corporate plans.

In Major Salmon Case, Big Payout Agreed by Firms

Discover the latest update in the salmon farming industry as seven major companies, including Mowi and Grieg, settle a class-action lawsuit over global price-fixing allegations. Learn about the over $5 million settlement, its impact on the industry, and what it means for large salmon buyers in Canada. Get insights into the legal implications and find out who is eligible for compensation in this significant development.

Salmon Farming Companies Settle Price-Fixing Lawsuit for Over $5 Million

In a significant development, seven salmon farming companies have decided to settle a lawsuit. This lawsuit accused them of working together to fix salmon prices worldwide. The firms, including Newfoundland and Labrador’s Mowi and Grieg, will pay more than $5 million.

The case involved big names in the industry, such as Cermaq Canada and Lerøy Seafood. They were said to have influenced salmon prices by controlling the Norwegian market. This action would have affected prices globally. However, this was never proven in court. By settling, the companies do not admit they did anything wrong.

Eligible Buyers to Claim Part of Multi-Million Dollar Salmon Lawsuit Settlement

Linda Visser, a lawyer, says settling can save companies time and money. This settlement is important for those who bought a lot of salmon in Canada between April 10, 2013, and February 20, 2019. They can now claim part of the settlement money.

The firms have also decided to donate $250,000 to Food Banks Canada. This settlement still needs the Federal Court’s approval. This case is a big deal in the salmon industry and for those who buy salmon.

Thai Unions 11.4bn Incredible Finance Deal

Explore Thai Union Group’s groundbreaking journey in sustainable finance with its recent 11.4 billion baht sustainability-linked loan. Delve into the company’s ambitious Blue Finance strategy aiming to revolutionize its long-term financing with a focus on ocean conservation. Discover how leading global banks are supporting Thai Union’s commitment to a sustainable future, marking a significant milestone in the seafood industry.

Thai Union Group Announces Major Sustainable Finance Achievement

In a significant move towards sustainability, Thai Union Group, a leading global seafood powerhouse, has proudly announced the successful acquisition of a monumental 11.4 billion baht sustainability-linked loan (SLL). This strategic financial milestone was unveiled at the much-anticipated Sustainability Expo in October 2023, held at the prestigious Queen Sirikit National Convention Center.

Thai Union’s Blue Finance Strategy: A Leap Toward Sustainable Future

Marking a new era in its financial strategy, this SLL package is a pivotal part of Thai Union’s innovative Blue Finance agenda. With a forward-looking vision, the company is steadfast in its commitment to enhance its sustainability-linked finance. The target is ambitious yet achievable: to amplify this to 75% of the company’s long-term financing by 2025.

Reflecting on its sustainable finance journey, Thai Union has already achieved commendable progress. Between 2020 and 2022, the company triumphed in the first phase of its Blue Finance initiative. This phase saw a significant increase in its long-term SLL, reaching 50% of its long-term financing. This initiative underscores the company’s dedication to promoting sustainability, particularly in ocean conservation, which is crucial for the future of our planet.

Leading Global Banks Back Thai Union’s Sustainability-Linked Loan

The newly secured SLL, unique in its structure, is denominated in both Thai baht and US dollars. It spans across various tenors, including three and five-year periods. This robust financial package is backed by a consortium of leading global banks. These include HSBC, Bank of Ayudhya, MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation. These financial giants have played a pivotal role, acting as the mandated lead arranger, bookrunner, and sustainability coordinators for this trailblazing financing.

Thai Union’s successful venture into sustainable financing has garnered immense support from these top-tier banks. This collaboration not only highlights Thai Union’s commitment to sustainable practices but also reflects the confidence of the global financial community in the company’s vision and long-term goals. This milestone is a testament to Thai Union’s leadership in the seafood industry and its unwavering commitment to a sustainable future.

US Govt vs. Poultry Industry: Cracking Down on Unfair Practices

Explore the impact of antitrust enforcement on the poultry industry in this insightful article. Discover how recent legal actions by the US government are transforming chicken farming practices, addressing price-fixing and wage issues. Learn about the challenges and significance of these changes for fairer market competition and their potential influence on future policies.

US Antitrust Rules Change Chicken Farming

Recently, the government’s legal steps have made big changes in chicken farming. For a long time, chicken companies paid farmers in a way that often wasn’t fair. Farmers couldn’t control much about their pay. But now, new agreements are changing this system.

The Biden government’s strong actions against unfair business practices have helped a lot. The Department of Justice got involved and made real improvements. In a big move, companies in a legal case about low wages agreed to stop using the old pay system. Now, all chicken farmers will get at least a basic pay. This is a big step towards fairer work in chicken farming.

Legal Battles Show Tough Antitrust Rules

These changes didn’t come easy. Big legal cases against chicken companies, about fixing prices and low wages, ran into many problems. Some trials didn’t end with clear results, making people wonder if the government’s plan was working. The defense said the higher prices were just normal market changes, not secret deals. This idea seemed to make sense to the juries.

The trouble in court made people think about whether our laws are strong enough to control big companies. Trying to solve these problems in court is good, but it’s hard to prove when companies are breaking the rules. Now, people are talking about whether we need new laws for today’s big companies.

Poultry Industry’s Legal Issues with Prices and Wages

Despite these problems, the government’s work is getting attention. They’re focusing on how a few big companies control the market, which affects prices and wages. These legal cases haven’t all been won in court, but they’ve started important talks about stronger rules against unfair business practices.

Also, these changes in the chicken industry remind us that the government should support fair competition and look after both customers and workers. As the government keeps working on these issues, the results of these cases will be important. They could change how the chicken industry works and lead to new policies in the future.

Source: New York Times.

World’s Largest Fishing Companies

Explore the leading giants of the global fishing industry in 2023. Dive into our comprehensive overview of the top fishing companies, including Iceland’s Sildarvinnslan HF, China’s versatile Cgn Nuclear Technology Development, and more. Discover how these major players, with their impressive market caps and diverse operations, are shaping the worldwide fishing sector. Stay informed about the industry’s key contributors and their global impact.

In a vibrant display of global industry diversity, the fishing sector’s giants of 2023 stand out for their impressive market capitalizations and international presence.

A List of The World’s Largest Fishing Companies:

1. Sildarvinnslan HF – Iceland’s Fishing Titan

Dominating Iceland’s fishing landscape, Sildarvinnslan HF is not just a local hero but a global force. Boasting a market cap of $1.627 billion as of July 2023, this company is a leading name in fishmeal and fish oil production, cementing Iceland’s status in the global fishing industry.

2. Cgn Nuclear Technology Development – China’s Multi-Faceted Player

Cgn Nuclear Technology Development, primarily known for its involvement in various industries like plastics and real estate, also makes a significant splash in fishing. With a July 2023 market cap of $1.067 billion, it’s a testament to China’s diverse industrial prowess.

3. PJSC Russian Aquaculture – Russia’s Aquatic Pride

Rooted in Russia, PJSC Russian Aquaculture merges the worlds of fishing, poultry, and farming. The company’s market cap stood at $0.621 billion as of late 2022, showcasing Russia’s robust presence in the global fishing scene.

4. Aker Biomarine AS – Norway’s Biotech and Fishing Fusion

Norway’s Aker Biomarine AS, blending biotechnology with fishing, marked a market cap of $0.334 billion by July 2023. This innovative approach highlights Norway’s cutting-edge contributions to the fishing sector.

5. Shanghai Kaichuang Marine International: China’s Versatile Contender

Shanghai Kaichuang Marine International, a diverse player in fishing, poultry, and farming, showcased a market cap of $0.333 billion as of July 2023. This highlights China’s versatile and dynamic approach in the global market.

6. Compania Pesquera Camanchaca – Chile’s Coastal Champion

Chile’s Compania Pesquera Camanchaca, active in fishing, poultry, and farming, had a market cap of $0.255 billion by mid-2023. This underlines Chile’s significant role in the global fishing industry.

7. Yonkyu – Japan’s Seafood Specialist

Japan’s Yonkyu, focusing on fishing, meat, poultry, and farming, recorded a market cap of $0.201 billion as of July 2023. It’s a reflection of Japan’s deep-rooted expertise in the seafood sector.

8. Saudi Arabia’s Jazan Energy and Development: A Diverse Powerhouse

With operations in agriculture, fishing, poultry, and farming, Saudi Arabia’s Jazan Energy and Development held a market cap of $0.198 billion in July 2023, showcasing the kingdom’s diverse industrial landscape.

9. Sea Harvest Group – South Africa’s Ocean Harvest

The Sea Harvest Group from South Africa, involved in fishing, poultry, food products, and farming, had a market cap of $0.161 billion as of mid-2023. This positions South Africa as a key player in the global fishing market.

These companies, with their vast and varied operations, not only shape the global fishing industry but also reflect the economic and cultural diversity within this sector. They stand as pillars of an industry that’s as dynamic as the oceans they harvest.

On of the world’s largest fishing “super-trawlers” in action

European Pork Industry 2023 Review: Challenging Times

A comprehensive overview of Europe’s pork production landscape in 2023. This article delves into the latest trends, highlighting the top pork producing countries within the EU, with a special focus on Spain’s rise as the leading pork producer. We explore the challenges and changes faced by major European pork producers, including the impact of African Swine Fever on Germany’s market and adjustments made by key companies like Tönnies. Stay informed about the industry’s dynamics, key players, and future outlook in this detailed analysis.

The European pork industry has experienced significant changes in 2023. Here’s a comprehensive overview:

European Pork Industry Overview in 2023

Production Decline: European pork production witnessed an 8% reduction in the first seven months of 2023 compared to the previous year. This decrease is mainly attributed to the liquidation of 1 million sows following substantial financial losses.
Price Trends: Despite the lower production levels, hog prices in Spain declined for 14 consecutive weeks. The price dropped from 2.025 Euro/kg to 1.658 Euro/kg. However, these prices are still higher compared to the same period in other years.
Challenges: The industry faces numerous challenges, including environmental and animal welfare regulations, older facilities, generational issues in family farms, high feed costs, and diseases like ASF and PRRS. These factors contribute to the continued decline in pork production.

Production by Major European Countries

Spain: Remains the largest producer of pig meat in Europe, though it has seen the largest year-on-year decline, with production levels in Q1 2023 dropping by 7% compared to Q1 2022.
Germany and Denmark: Also reported significant production falls of 8% and 20%, respectively, from 2022 levels.
Other Key Countries: The Netherlands, France, and Belgium saw production drops ranging between 5-10% compared to the previous year. Poland recorded the smallest decline among the major producers, with a 3% reduction in the first quarter.

Overall, the European pork industry in 2023 has been marked by a reduction in production, influenced by various challenges and shifts in market dynamics. The overall pork production in Europe has been declining. In the first seven months of 2023, the EU-27 countries produced 11.9 million tonnes of pork, which is an 8% decrease from the same period in the previous year. This decline is consistent across major pork-producing countries, including Germany, the Netherlands, and Denmark. Despite these challenges, major players continue to operate and adapt to the evolving market conditions.

Top Players in the European Pork Industry

Major European Pork Producers: Some of the known large pork producers in Europe include Vion Food Group in the Netherlands and Tönnies in Germany. Vion Food Group has adjusted its production capacities in Germany, and Tönnies has also made changes to its production capacity.

These companies are key competitors in the industry, contributing significantly to the market dynamics.

Global Perspective: In 2022, the world’s MEGA pork producers (operations with 100,000 sows or more) were mainly headquartered in China, the USA, Brazil, Spain, and Russia. Notably, Spain and Germany are the leading pork producers in the European Union.