2024 an eventful year for dairy companies on the global stage

Our yearly review highlights mergers, acquisitions, expansions, executive hires and other company news.

Across the international dairy sector, business activity has been brisk this year, as one can see from the U.S. Dairy Export Council's 2024 Global Dairy Company Review. 

We draw on items published in our weekly, members-only newsletter, Global Dairy eBrief, starting with the January 5 edition and ending with the December 20 edition. 

This is a fast-paced yet lengthy review. We put company names in bold for easy scanning and searching. One way to find a collection of items pertaining to a particular company you may be interested in is to copy and paste this blog post into a Word document and then use the search function. 

What follows is a one-of-a-kind, archival summary of global dairy company news developments during 2024, presented in month-by-month chronological order.   

Molly Pelzer, CEO of Midwest Dairy, officially announced her retirement, which will be effective in March 2024. Pelzer joined Midwest Dairy in 1984 as a program director working with schools and dairy nutrition programs and served in a variety of leadership roles ever since. She has also served on USDEC’s Operating Committee. “Over my time at Midwest Dairy, I have seen checkoff strategies evolve and foster new ideas that make a difference for dairy farm families,” said Pelzer. “It has been a privilege to work for dairy farmers in each of my roles in dairy checkoff, and I will continue to be a dairy advocate in my retirement.” Midwest Dairy’s board has engaged a search firm to guide the selection of the next CEO for the organization.

Lino A. Saputo, president and CEO of Saputo Inc., was appointed to the Order of Canada, an honor created by the Canadian government in 1967 to recognize “people who make extraordinary contributions to the nation.” Saputo founder Emanuele (Lino) Saputo was previously appointed a Member of the Order of Canada in 2012. … Michigan-based pizza chain Domino’s plans to add more than 1,100 new stores per year under its recently announced five-year growth plan called “Hungry for More.” Over the long term, Domino's believes the international business could grow to 40K locations, outnumbering U.S. stores 4-to-1. … Two of Africa’s most prominent e-commerce companies—Wasoko and MaxAB—plan to merge. Together, the groups have an estimated customer base of 65 million people across eight countries: Egypt, Morocco, Kenya, Tanzania, Rwanda, Uganda, Zambia and DR Congo. … An arbitrator was appointed to help New Zealand’s A2 Milk and Synlait Milk come to an agreement over A2’s termination of an exclusive supply deal with Synlait. (USDEC Middle East/North Africa office; Company reports; Reuters, 12/21/23; Seeking Alpha, 12/7/23)

Ornua Nutrition Ingredients, which is part of Ornua Ingredients Europe, is selling its powder blending and manufacturing business in the UK to Roger Wertheim-Aymes, founder of the medical supplement operation Aymes. (Ornua and Aymes had previously signed a long-term supply agreement for sachets of milk powder under the Aymes Shake label.) The deal includes a facility in Leek, UK, which produces dairy ingredients, bakery products, breakfast cereal, sports nutrition products and health and well-being products. Once the deal is finalized, the facility will manufacture products under the trading name Allicio. (Just Food, 1/10/24; Agriland, 1/6/24)

Pinlive Foods, the Chinese owner of the imported dairy brand Weidendorf, started producing its own cheese in December. The company’s first factory is located in Shanghai and includes two cheese production lines—one for small round-shaped cheddar cheese with a production capacity of 600 kg per hour, the other for string cheese with a production capacity of 500 kg per hour. (USDEC China office)

Australia-based milk powder company Nutura Organic is expanding its presence into Vietnam and Thailand as the company looks for growth in emerging markets while China becomes more challenging. In Vietnam, Nutura is partnering with Natural Foods Group to launch products ranging from its pregnancy and conventional infant milk formulas to its organic infant milk formula. In Thailand, the company announced a distribution deal with Thai food producer CP Foods to introduce Nutura products into the country. That launch, which is expected to begin in hypermarkets and supermarkets in the first quarter of this year, features products designed for consumers at different life stages, including both infant and adult milk formulas from Nutura Organic. (NutraIngredients-Asia.com, 1/3/24)

French dairy company Danone signed an agreement to sell its Horizon Organic and Wallaby premium organic dairy businesses in the U.S. to Platinum Equity, a U.S.-based investment firm. Horizon Organic and Wallaby represented approximately 3% of Danone’s global revenues in 2022. Danone will retain a non-consolidated minority stake in the business. … UK-based Volac International has agreed to sell its milk replacer business to The Netherlands’ Denkavit Group, a move that will make Denkavit the sole owner of the Volac milk replacer sales organization and the Volac Socoor business in Italy. Company officials said the buy-out was a strategic decision that will allow Denkavit to strengthen the milk replacer business while enabling Volac to put more focus on growing its new feed additives division. … Chicago-based Archer-Daniels-Midland announced a deal to acquire Revela Foods, a Wisconsin-based dairy flavor ingredients developer and manufacturer. The deal, which ADM says will enhance its growing portfolio of flavor ingredients and solutions, is expected to close early this year. (Company reports)

Dallas-based pizza buffet chain Pizza Inn signed a franchise agreement with Blessings Basket Company for Serving Food to develop 50 locations in the Kingdom of Saudi Arabia. The deal, which kicks off with two new locations in the Middle Eastern kingdom this month, will more than triple the number of outlets Pizza Inn operates internationally. … China’s National Dairy Innovation Center officially started operation in December. Approved by the Ministry of Science and Technology and located in Inner Mongolia, the Center brings together more than 100 member companies and more than 1,000 research experts from China and abroad to focus on China’s national dairy demand and industry development. … Ireland’s Lakeland Dairies plans to expand its Killeshandra, Co. Cavan, fluid milk facility, increasing milk intake by nearly 20% and expanding storage, packaging and loading dock. (Late last year, Lakeland announced the closure of three of its processing sites.) … French global dairy giant Lactalis inaugurated a new solar plant that’s expected to reduce carbon dioxide emissions by 7% or about 2,000 MT per year. The solar thermal plant will supply heat to the company’s adjacent Verdun dairy factory, which converts liquid whey into whey powder, for the next 25 years. (Company reports; USDEC China office; Agriland, 1/8/24; Restaurant Business, 1/4/24)

FrieslandCampina Ingredients has identified key trends it says will shape the coming year in the food, drink and supplement industries, as consumers turn to nutrition as a source of comfort and control in a tumultuous world. In its “Nutritional Trends 2024” report, the Dutch dairy cooperative says an increased focus on healthy eating will manifest itself in nutrition trends including: sustainable, planet-first nutrition; accessible and tailored nutrition for all; innovation in alt proteins; advancing gut health; and healthy ageing and recovery. (Company reports)

Japan’s Meiji is nearly doubling its investment in Danone’s infant formula production facility in Wexford, Ireland. The company added €10.5 million (about US$11.4 million) in new funding, pushing its total investment in the facility to €22.5 million (about US$24.5 million). The money will go toward increasing capacity to meet rising demand for the product, which was rolled out in to several European markets in 2022. (Just Food, 1/11/24)

Ann Meaney, Tirlán’s head of ingredient marketing, recently sat down with editors from DairyReporter for a Q&A on dairy ingredient trends and opportunities in the Asia-Pacific region. Click here to read Meaney’s thoughts on nutrition, innovation, the marketing advantages of “grass-fed” and more. Glanbia Ireland and Glanbia Co-op changed their name to Tirlán in late 2022. (DairyReporter, 1/11/24)

Hong Kong-based investment firm PAG Private Equity agreed to acquire a controlling stake in Food Union Europe, a Latvia-based provider of ice cream and frozen dairy treats to consumers in Latvia, Estonia, Lithuania, Denmark, Norway and Romania. (Company reports, 1/10/24)

Tata Starbucks, the joint venture between Starbucks and India’s Tata Consumer Products, said it plans to add 1,000 new stores in India by 2028. The expansion plan involves entering some of India’s Tier 2 and 3 cities, increasing staff to roughly 8,600 people, and expanding the venture’s drive-thru, airport café and 24-hour store offerings. … Danone plans to shut down its dairy and plant-based yogurt facility in Parets del Vallès, north of Barcelona, Spain, in a move aimed at improving manufacturing efficiencies. It did not reveal a timeline, but news reports say the company is already looking for a buyer for the plant. … As part of the country’s efforts to boost earnings by farmers, Kenyan President William Ruto commissioned a new Kenya Cooperative Creameries (KCC) factory in Nyahururu that’s expected to process at least 150,000 liters of milk a day. Ruto also directed KCC to begin paying farmers KSh50 (about US$0.31) per liter for milk beginning March 1, up from the current KSh 40 (US$0.25). … Paris-based food technology startup Standing Ovation, which is backed by Bel Group, received €3 million (roughly $US 3.3 million) in public sector funding to increase its production of animal-free casein from precision fermentation. (Just Food, 1/12/24; Green Queen, 1/12/24; Inside Retail, 1/10/24; Office of the President of the Republic of Kenya, 1/10/24)

Heloise Le Norcy-Trott, group marketing director for Lactalis UK & Ireland, shared in a recent interview with GroceryTrader that rising consumer confidence has the UK cheese market poised for growth in the next 12 months. Click here to read the cheese trends Norcy-Trott says will help drive growth and opportunity in 2024. (GroceryTrader, 1/17/24)

French dairy company Danone announced it will invest EU$100 million (about US$109 million) in the company’s operations in Mexico in 2024. The financial commitment includes support for the company’s “Margarita Project,” which has provided tools, training and technology for more than 500 rural milk producers in the country to help ensure the quality of milk used in Danone Mexico’s yogurt production. … Arla Foods began an operational review of its specialty cheese site, Arla Melton Mowbray Creamery UK, to search for a buyer. The plant is also known locally as Tuxford & Tebbutt. Arla cited a decline in the UK specialty cheese market as the reason for the review. … Chilean food tech company NotCo can continue to use the word “milk” on its NotMilk labels after a recent ruling found the company clearly states its product is not actually milk. A court of appeals rejected a lawsuit filed by the Association of Milk Producers of the Los Ríos Region that claimed NotCo was guilty of unfair competition for using the word on its plant-based beverages. … Israel-based food tech startup Imagindairy announced it has acquired and is operating its own industrial-scale precision fermentation production lines focused on the production of dairy ingredients. The facility allows Imagindairy access to more than 100,000 liters of fermentation capacity, with planned capacity expansion to triple this volume in the next one to two years. (Agriland, 1/23/24; Yucatan Times, 1/21/24; Vegconomist, 1/18/24; company report, 1/17/24)

Global investment firm Cathay Capital announced a strategic partnership with French dairy company Savencia Fromage and Dairy, in a deal that aims to enhance Savencia’s presence in China. The partnership includes Cathay’s investment in Savencia’s Chinese brand Baijifu, which includes more than 50 cheese and dairy products. A Cathay official said the investment signals the firm’s belief in the future potential of China’s dairy market, and that the company will help Baijifu “better adapt to the evolving needs of the Chinese market and actively promote product innovation and brand development, sales channel expansion and supply chain management for the French brand.” (China Daily, 1/26/24)

Vertically integrated Russian dairy producer EkoNiva Group is opening a new office in the Chinese city of Xi’an. The move aims to grow dairy exports to China by increasing brand awareness, expanding the range of products offered, and improving supply chains by leveraging rail transport in the region. EkoNiva has been exporting dairy products to China since 2020, including retail UHT milk. (The DairyNews, 1/23/24)

The Value4Dairy Consortium, a collaboration of four strategic partners led by Dutch dairy cooperative FrieslandCampina, received a US$5 million grant from the Bill & Melinda Gates Foundation to boost dairy productivity and sustainability in the Nigerian dairy sector. The Consortium, which was launched in 2021, aims to enable farmers in tropical conditions such as Nigeria to improve milk yields and income. The private sector collaboration includes FrieslandCampina WAMCO (the company’s Nigerian dairy subsidiary); URUS (a global artificial insemination, genetics and herd management systems company), Barenbrug (a grass and forage seed company), and Agrifirm (a global company that operates in the animal nutrition and crop farming business).The grant will fund half the cost of the Consortium’s latest project, which aims to modernize the Nigerian dairy sector and bolster small-scale milk production. The Consortium will establish three self-sustaining dairy zones that will be run by local farmer cooperatives and will serve as hubs for training and supporting 10,000 pastoralists and smallholders, with the goal of growing to include 40,000 milk producers. FrieslandCampina WAMCO will collect the aggregated milk for processing, and Consortium partners will provide farmers with access to the latest advancements in feed, breeding, sustainable farming practices and routes to the market, enabling them to increase milk production at lower costs sustainably. (Company reports)

New Zealand’s Fonterra Co-operative Group made two moves as part of its ongoing efforts to increase sustainable production. Fonterra Australia launched a project that eliminates the cardboard packaging used when transporting its Perfecto Italiano Mozzarella cheese from its Stanhope manufacturing site to the secondary processing site in Melbourne, where it is shredded. Fonterra’s “Naked Mozz” initiative will reduce the amount of cardboard used each year for the trip by 330 tons for an annual savings of more than NZ$825,000 (about US$505,000). Separately, Fonterra said it will install a 20-megawatt electrode boiler at its Edendale site on New Zealand’s South Island. The expected NZ$36 million (about US$22 million) investment will decrease the site’s emissions by around 20% per year and lower the company’s overall carbon emissions by nearly 3% per year when it begins operating in FY25. As part of a strategic plan to expand its wellness sector profile and bolster its Southeast Asia position as a regional business hub, Fonterra is expanding its Nurture range of powdered probiotic drink products. The New Zealand-based dairy nutrition cooperative’s Nurture brand is introducing a new range of products designed to target skin health and stress relief that build upon its existing offerings designed to support immunity, energy and focus. Nurture is introducing the range in Singapore, and looking to expand into potential markets including Malaysia, Indonesia and Thailand. The products target active professionals seeking improved support for gut health and overall productivity and well-being. Each unit contains 50 billion probiotic strains, with no added sugar. They’re currently available for purchase on Nurture’s website. Company officials said they’re working with their Singapore teams and distribution partners on plans to expand distribution into stores. (Company reports; NutraIngredients-Asia.com, 1/23/24)

Denmark-based Arla Foods is in discussions to purchase the Semper facility, a factory in Sweden owned by Switzerland’s Hero Group that is set to be closed due to changing market conditions. Arla already owns a cheese and spreadable butter factory next to the Semper site and is interested in buying the land as well as the factory buildings and parts of the equipment. … The Kansas Dairy Ingredients (KDI) plant in Hugoton closed unexpectedly last week, just two and a half years after KDI invested more than US$40 million to expand the plant, which employed more than 100 people and produced cheese and butter. (Company reports; 12News, 1/22/24; Dairy Business Africa, 1/25/24)

Following news of the acquisition of Food Union Europe by a private equity firm, Andrey Beskhmelnitsky, CEO of the Latvian frozen dairy treats provider, spoke with DairyReporter about the accompanying spinoff of the group’s Chinese business. In the interview, Beskhmelnitsky said Food Union China, which will become an independent entity, will focus on pursuing B2B growth and developing its protein-enriched products in China as it splits from the wider group. Click here to read more about Food Union China and its upcoming strategic initiatives and priorities. (DairyReporter, 2/5/24)

Australian dairy producers Margaret River Dairy Co. and Mundella Foods returned to local ownership when they were reportedly bought by Australian dairy company The Cheeky Cow. The two dairy companies were shut down by their Chinese owner Bright Foods Group when Bright said it could not find a buyer last year. Cheeky Cow plans to move its operations to the newly acquired Margaret River Dairy facility after making renovations to the site. (Augusta Margaret River Times, 2/5/24)

Irish dairy cooperative Ornua named Lindsay Brady as president of Ornua Foods North America. According to the company, Brady, whose most recent role was as general manager at Conagra Brands, will be responsible for “driving ambitious growth plans” for its Kerrygold butter brand in the U.S. and Latin America. … Denmark-based bioproduction company 21st.BIO announced it is now granting access to its precision fermentation technology platform to food and ingredient manufacturers. The move follows 21st.BIO's successful scaling of the beta-lactoglobulin protein. … Saudi Arabia-based food manufacturer, seller and distributor Saudia Dairy and Foodstuff Co. (SADAFCO) opened a new sales depot in Makkah. The 86,000-sq.-ft. warehouse, which includes a solar energy system, was established to save costs and improve the supply chain and services to cities in the region. … Belgium-based dairy cooperative Milcobel said the company and its CEO Nils van Dam have “parted ways.” A company statement cited “a clear difference in vision between Board of Directors and CEO” for the split and said a management team has been assembled by the Board of Directors to handle day-to-day management until a new CEO is hired. (Company reports; Arab News, 1/20/24)

New Zealand-based dairy cooperative Fonterra said it is increasing production of cream cheese at its Darfield site to meet growing demand from China. Plant officials said the company plans to export around 20,000 MT of cream cheese to China this season—an increase prompted in part by last week’s Chinese New Year celebrations, as cream cheese is commonly found in Chinese pastries, tea macchiatos, cheese lollipops and cheesecakes. (Radio New Zealand, 2/12/24)

Citing the need for “efficient and productive operations” in the current global landscape, Nestlé announced plans to close its dairy plant in Matagalpa, Nicaragua. The plant focuses primarily on producing dairy products under the Switzerland-based company’s Prolacsa brand, which officials say will move its operations to other facilities in Latin America. … Irish dairy cooperative Ornua named Conor Galvin as its new CEO. Galvin, who is currently CEO of Ireland-based coop Dairygold, will assume the new role in May. … France-based Danone inaugurated a new beverage production facility that was recently converted from dairy to plant-based. The site, which took two years to transform and features two production lines, was converted to anticipate consumer demand and is now home to Danone France’s only oat-flour-to-oat-juice production facility. … Israel-based animal-free dairy company Remilk received Health Canada's “Letter of No Objection,” which allows the startup to sell its animal-free beta-lactoglobulin protein in Canada. The company’s products, which incorporate proteins produced via precision fermentation, have also received approval from the U.S., Singapore and Israel. (Company reports; Dairy News Global, 2/12/24)

New Zealand dairy cooperative Fonterra announced it will merge its Fonterra Brands New Zealand and Fonterra Australia business units. The new, single entity will be known as Fonterra Oceania and will be led by René Dedoncker, who has been Fonterra Australia’s managing director since 2017. Fonterra CEO Miles Hurrell said the merger is part of an effort to bolster the co-op’s competitive position in the trans-Tasman dairy market. (FoodBev.com, 2/21/24; Dairy News Global, 2/19/24)

In its 2023 annual results, Denmark-based Arla Foods said a cautious first-half consumer market gave way to growth for its brands in the second half of the year. The farmer-owned cooperative reported 2023 revenues of €13.7 billion (about US$14.75 billion)—down only slightly from the previous year’s total of €13.8 billion. Net profit was €380m (about US$410 million). In its 2024 outlook, the company said it expects second-half 2023 growth momentum to continue in the first half of this year, resulting in an expected “return to branded volume driven growth for 2024 as a whole of 1%-3%,” despite more market and growth outlook uncertainty in the second half of the year. (Company report, 2/20/24)

Finnish dairy company Valio announced the launch of a new research, development and innovation project designed to “create a Finnish nature-smart food system in which growth, profitability and added value are built on the basis of sustainable production.” The five-year, €100 million (about US$108 million) initiative, known as “Food 2.0,” is set to start this year and aims to increase exports connected to the food system by more than €1 billion (about US$1.1 billion) once completed. The project will receive about €30 million (about US$32 million) in funding from Business Finland, a government organization that provides innovation funding and trade, travel and investment promotion. (Company reports)

Scotland-based dairy cooperative First Milk completed its acquisition of Blackmore Vale Dairy, a UK-based manufacturer of chilled dairy products. … German ingredients giant Döhler entered a manufacturing partnership with Delaware-based fermentation company Superbrewed Food to help the startup scale production of its Postbiotic Protein ingredient. The companies claim the ingredient performs well in dairy and alternative dairy applications. Superbrewed and France-based cheesemaker Bel Group are reportedly making progress on their 2022 strategic collaboration to develop lines of cheese products that incorporate Postbiotic Protein. (Company reports)

Yili Group’s new ice cream factory in Huanggang City, Hubei Province, started production. The new facility, Yili’s fourth in the province, mainly produces high-end ice cream and frozen dairy products, with a capacity of 100,000 MT per year. The company estimates the plant will drive US$277.84 million in revenue annually. … To mark the Lunar New Year, Starbucks released a new pork-flavored latte in China called the “Abundant Year Savory Latte.” The drink, which features pork-flavored sauce with espresso and steamed milk and is garnished with a slice of pork on a skewer, is available at Starbucks Reserve stores across China. … In its recently released five-year outlook, Toronto-based Restaurant Brands International (RBI) said it is confident in the long-term global growth outlook for its Tim Hortons, Burger King, Popeyes and Firehouse Subs operations. Company officials said RBI is envisioning opening at least 7,000 new restaurants in international markets over the five-year outlook period. … To meet growing consumer demand and create consistency with other company products, Arla Foods relaunched its plant-based JÖRĐ brand as Arla JÖRĐ. The relaunch, which debuted in Sweden last week, includes updating the package design to feature the Arla brand and an enhanced formula that includes vitamins D and B9 as well as fiber. (USDEC China office; Company reports; Vegconomist, 2/16/2024; CNN, 2/20/24)

France’s Danone plans to sell its Russian business to a member of its government-installed management team for 17.7 billion rubles (about US$192 million). The move comes after Danone’s local operations were seized by the Russian government last July in retaliation against foreign sanctions imposed in response to its 2022 invasion of Ukraine. Danone initially said it would stay in the region after the war began but decided to seek a buyer after seeing financial performance decline. The deal, which is reportedly priced at 56% less than market value, must be approved by Russia’s Ministry of Agriculture and a special subcommittee that rules on the exits of Western companies. (Reuters, 2/21/24; Financial Times, 2/21/24)

Persistently high inflation interfered with sales at many major global dairy processors in 2023, as companies noted in their most recent financial performance results.

• China driving results for a2 Milk Co. New Zealand-based infant formula company a2 Milk Co. reported that revenue was up 3.7% and net profit after tax was up 15.6% in its 2024 half-year results. The company’s report cites strong performance in the Chinese market, which accounts for roughly 80% of its branded sales, for the gains. Despite fewer births and higher costs associated with meeting China’s new national standards for infant formulas, a2 posted total IMF sales growth of 1.5% and launched a new China-labeled IMF product. However, while announcing improved revenue guidance, the company also warned that “China IMF market conditions remain challenging with a double-digit decline in market value still expected in FY24.”
• Dairy Ireland weighs on Kerry Group results. Kerry Group 2023 revenues fell by 8.6% to €8.020 billion (about US$8.7 billion) while profit after tax increased to €728.1m (about US$787.4 million). Part of the revenue drop was attributed to falling sales and volumes in the Dairy Ireland unit. Revenue and overall EBITDA in Dairy Ireland dropped due to constrained supply conditions as well as elevated input costs impacting market demand dynamics. Chief executive Edmond Scanlon said the company would continue to “selectively invest” in the dairy business. It sees emerging markets, sustainable nutrition and foodservice as its key business differentiators.
• “Difficult year” for FrieslandCampina. Netherlands-based FrieslandCampina’s revenue dropped by 7.1% in 2023 to €13 billion (about US$14 billion), a decrease the company attributed to unfavorable currency translation effects, the sale of part of its German consumer activities and declining volumes in consumer markets due to high inflation. The co-op’s operating profit tumbled 84.1% last year to €75 million, a drop linked to discrepancies between the guaranteed price of member milk and dairy commodity market prices. CEO Jan Derck van Karnebeek said, “2023 was a difficult year for FrieslandCampina,” and the company is not providing a supplementary cash payment to its member dairy farmers. FrieslandCampina expects worldwide demand for dairy to grow slightly in 2024, but said ongoing conflicts and geopolitical instability in various parts of the world will likely increase costs for raw materials, packaging materials and transportation.
• Strong results for Danone. France-based Danone reported that revenues rose 7% in 2023 to €27.6 million (about US$30 million), a jump attributed to a 7.4% increase in prices. The essential dairy and plant-based protein (EDP) business was credited as a key driver of Danone's success, delivering positive results with volume/mix returning to positive territory. China, North Asia and Oceania also experienced competitive growth. CEO Antoine de Saint-Affrique said 2023 was a year of consistent progress and strong delivery against the company’s Renew Danone agenda. “In a context which remains challenging, the progressive improvement of our volume-mix, turning positive in Q4, the visible progress made by EDP Europe, and the continued strong momentum of our Medical Nutrition activity are encouraging signs, even if lots remains to be done,” he said. This year, the company expects inflation to ease and like-for-like sales growth in the 3% to 5% range.
• Dairy and Infant Nutrition grow for Nestlé. In the Swiss food and beverage giant’s full-year 2023 results, total reported sales decreased 1.5% to CHF93 billion (about US$106 billion), a drop the company attributed to foreign exchange fluctuations and net divestitures. Two of the brighter spots were in Infant Nutrition and dairy. Infant nutrition posted high single-digit growth, based on continued momentum for premium infant formula, including human milk oligosaccharides products and specialty formulas. Dairy reported mid-single-digit growth, led by fortified milks, coffee creamers and home-baking products. Dairy sales in Latin America were solid, with high single-digit growth supported by dairy culinary solutions and fortified milks. Infant Nutrition saw high single-digit growth in Latin America and positive growth in Greater China. Sales of healthy aging products grew at a double-digit rate in China, supported by the launch of the company’s N3 milk. CEO Mark Schneider cited increased marketing and other investments for the company’s growth in the face of unprecedented inflation that impacted consumer demand for food and beverage products. Nestlé expects organic sales growth of around 4% in 2024 and a moderate increase in operating profit margin. (Company reports)

Fraser & Neave Holdings, the Malaysian unit of Singapore-based Fraser and Neave Ltd., announced plans to lease a 350,000-sq.-ft. industrial land parcel in Cambodia for a new dairy manufacturing facility. A new subsidiary, Fraser & Neave Foods (Cambodia), will operate the facility, which will produce sweetened beverage creamer in cans and pouches. According to a company report, the 50-year lease aims to help strengthen the company’s presence in Cambodia. The facility, which is expected to cost US$38 million to develop, is slated to open in early 2026. (Company reports)

Denmark-based Arla Foods announced that in 2025 it will close its Tistrupt dairy factory and transfer “the majority” of its cheese production to its facility in Taulov, about 80 kilometers away. The company said the Tistrupt facility, which will shut down in 2026, would require “significant investments” to meet future safety, health and quality standards. (Just Food, 2/22/24)

Australia-based Bega Cheese said it will close its Betta Milk and Pyengana Dairy plant in Burnie, Tasmania, and move production of those brands to one of its other Tasmanian facilities. A company statement cited the inability of the site to function in a commercially sustainable way, calling it “an aging facility that has a number of challenges including its safety and environmental impacts.” … Unilever’s Breyers brand and California-based precision fermentation supplier Perfect Day announced a partnership to launch a new Breyers lactose-free chocolate frozen dessert made with Perfect Day’s dairy protein from fermentation. U.K.-based Unilever is the first multinational ice cream and frozen dessert brand to offer a product with Perfect Day’s whey protein from fermentation. (Company reports; Just Food, 2/20/24)

In its FY 2023 annual results, the Emmi Group reported revenue for FY23 up 0.3% from the previous year and adjusted net profit growth of 9.3% from 2022 (adjusted for the one-time loss on the divestment of Gläserne Molkerei and the profit from the sale of the minority interest in Ambrosi). The company credited its positive results to its consistent focus on strategic markets and attractive niches, including chilled premium desserts in the U.S. and Italy as well as in “important growth markets such as Chile and Mexico.” In 2024, the Emmi Group expects the general economic conditions to remain challenging and subdued economic growth in many market relevant to the company. As a result, the company expects organic sales growth of 1% to 2% and a net profit margin of 5.0% to 5.5%. (Company reports)

In a move designed to enhance the dairy cooperative’s portfolio of products and geographical reach, Ireland’s Lakeland Dairies completed its acquisition of Belgium-based butterfat business De Brandt Dairy International NV. … U.K.-based Butlers Farmhouse Cheeses acquired Hampshire Cheese. The deal, which will add Hampshire’s continental-style soft cheeses Tunworth and Winslade to the Butlers portfolio, reportedly makes Butlers the largest independent soft cheesemaker in the U.K. (Company report, 3/1/24; FoodBev Media, 3/6/24)

Saizeriya, an Italian restaurant chain from Japan, invested US$30 million in its Guangzhou subsidiary to build a new plant that will produce sauce, pasta and pizza. The new facility, which is expected to begin operations in January 2026, will reportedly help reduce production costs, stabilize supply and increase capacity as Saizeriya looks to open more outlets in Guangzhou. … Irish co-op Lakeland Diaries received local government permission to proceed with its plans for an extension to its dairy processing facility in County Cavan. The single-story extension is part of a company effort to enhance operational efficiencies and will include storage, packaging and dispatch areas, as well as a corridor linking it to the existing facility. (USDEC China Office; Agriland, 2/27/24)

Minnesota-based Midwest Dairy, which represents more than 4,000 dairy farmers in 10 states, named Corey Scott as its new CEO. She will replace Molly Pelzer, who announced her retirement last fall. Scott has more than 15 years of food and agriculture experience, including serving as vice president of sales and marketing for Athian and holding several leadership positions with Land O’Lakes and its sustainability division, Truterra LLC. In 2023, Scott was selected as one of GreenBiz’s 12 Women Cultivating Sustainable Food Systems and earned a U.S. Dairy Sustainability Award for her work in reducing dairy’s overall environmental footprint. Scott began her tenure at Midwest Dairy on March 13. (Company reports)

Nestlé is selling a manufacturing plant and distribution center in Cayambe, Ecuador, to Peru-based Grupo Gloria. In addition to the facilities, the deal includes the brands La Vaquita, Yogu Yogu, Natura, Cereavena and Huesitos and the licensing of international brands La Lechera and Svelty. Grupo Gloria, which purchased Fonterra Co-operative Group’s Chilean dairy assets in 2022, said the Nestlé purchase further strengthens in Latin American portfolio. Nestlé said it would still do business in Ecuador in several food sectors, including infant formula and culinary products. (Just Drinks, 3/11/24)

Nestlé announced it achieved a net reduction of 13.5% of its greenhouse gas (GHG) emissions in 2023, including a reduction of more than 15.3% in methane emissions. A significant portion of those reductions came from efforts in the dairy sector: The Swiss food company said more than two-thirds of its GHG emissions come from sourcing its ingredients and identified dairy as the single largest source of emissions. To reduce emissions on farms, Nestlé said it is helping its suppliers and the farmers it sources from transition to locally relevant regenerative agriculture practices based on five key pillars of action: diverse cropping systems and livestock integration, biodiversity, collective and landscape actions, soil health, and water security and quality. The company said it is on track to reach its goal of a 20% absolute reduction of GHG emissions by 2025. (Company reports)

Savencia Fromage & Dairy Group reported a sales increase of 3.7% to €6.8 billion in 2023, despite a 3.7% dip in the fourth quarter. The French dairy group attributed the boost to organic growth of 11.6% and a structural effect of 2.1% related to the consolidation of Williner's activities from April 2023. Operating income decreased to €212.9 million, a 9.1% drop from 2022. The company cited higher raw materials and energies costs and lower industrial product prices for the drop. Looking forward, the company said it expects geopolitical and economic tensions will lead to a slowdown in the growth of world economies, and that constrained purchasing power will continue to impact consumption patterns.

Australian dairy processor Beston Global Food Co. saw first-half 2024 earnings fall short of expectations, with a reported a loss after tax of AU$18.8 million (about US$12.4 million) in H1 FY23. Year-over-year net sales from continuing operations fell 4.2% for the same period. The company said the low numbers were due to the extremely favorable weather conditions on its contracted supplier dairy farms, which lifted milk intake 7 million liters above its forecast, significantly raising inventories and placing pressure on working capital. Beston said it plans to sell inventories built in H1 FY24 and expects cashflows to return closer to budget when milk supply normalizes and inventory levels are reduced. (Company reports)

Ornua Ingredients is shutting down its processed cheese plant in Slippery Rock, Pennsylvania. The company cited the unforeseen cancellation of a manufacturing agreement with its sole customer. The plant is expected to close by the end of April. … A year after taking over the majority of the German dairy products business of Dutch dairy company FrieslandCampina, German dairy company Theo Müller said it will shut down its Heilbronn and Schefflenz Landliebe production sites by the summer of 2026. Müller attributed the closures to cost pressures, investment requirements and a challenging market situation. It plans to transfer production from the locations, including Landliebe-branded yogurts and desserts, to other sites in Germany. … Arkansas-based retail giant Walmart is building a milk processing facility in Robinson, Texas. The company said products from the new facility (its third plant) will serve more than 750 Walmart stores and Sam’s Clubs throughout the South, and it will enable Walmart “to meet the growing demand from customers for high-quality milk while providing transparency about where its products are sourced and making the supply chain more resilient.” … National New Markets Fund LLC, an affiliate of Los Angeles-based SDS Capital Group, has invested $17.5 million of its New Markets Tax Credit allocation into Minnesota-based farm co-op Bongards Creameries. The capital infusion will fund projects to increase Bongards’ milk intake capacity by almost one-third, from 4.1 million pounds to 5.4 million pounds per day. (Company reports; WKBN, 3/6/24)

Denmark-based dairy cooperative Arla Foods announced it will invest €210m (about US$228 million) to bolster mozzarella cheese production at its Taw Valley site in the UK. The investment, which the company says marks Arla’s largest-ever investment in Great Britain, will enable the company to advance technologies and better meet the demands of customers who are seeking particular browning, melting or stretching characteristics. Arla said the majority of the mozzarella produced at the Taw Valley site will be exported to global foodservice customers. Construction is expected to be complete in 2026, with shipping commencing the following year. (Company reports)

On the heels of Nestlé’s announcement that it achieved a net reduction of 13.5% of its greenhouse gas (GHG) emissions in 2023, Synlait Milk said it is partnering with the global food giant to help fund new emission reductions tools for its farmer suppliers. The New Zealand-based dairy processor said the partnership will focus on on-farm solutions to improve efficiency, including effluent management systems, emissions-friendly feed options, advanced soil testing, alternative fertilizers and tree planting. Financial terms of the deal were not disclosed. (Company reports)

As part of an effort to accelerate its “Growth Action Plan,” Unilever announced it will spin off its ice cream business and launch a cost-cutting productivity plan that could result in the elimination of roughly 7,500 jobs globally. A company statement said because the ice cream business’ operating model is very different from its other categories, the separation will enable Unilever to focus better on the more “complementary” segments of nutrition, beauty and wellbeing, personal care and home care. A demerger is the most likely separation route for the ice cream business, though the company said other options will be considered. It expects to complete the separation by the end of 2025. Unilever said the productivity program will help the company create a simpler, more focused and higher-performing business model through technology-led interventions, process standardization and operational centers of excellence. It is expected to deliver cost savings of around €800 million (about US$871 million) over the next three years. (Company reports)

Amid rising consumer demand, Mother Dairy, the commercial arm of India’s National Dairy Development Board, said it will invest Rs650 crore (about US$78.4 million) to set up two new plants for processing milk, fruits and vegetables. The plants are expected to be completed in two years. The milk supplier said it will also invest another Rs100 crore (about US$12.1 million) to improve and expand capacity in its existing plants. … Lithuania-based dairy company Vilvi Group said it is investing €50m (about US$54.6 million) to increase cheese production at its facility in Bauska, Latvia. The company did not say what cheese varieties it planned to expand, but it manufactures gouda, edam and other regional cheese types. It expects to complete the expansion by 2027. (The Hindu Business Line, 3/17/24; Just Food, 3/13/2024)

French cheese giant Lactalis bought Portuguese cheesemaker and wholesaler Sequeira & Sequeira. The deal includes Sequeira’s plant in Lamego, Portugal, and its wholesale activities in Portugal, Mozambique and Cape Verde. The plant, Lactalis’s second in Portugal, produces a range of traditional Portuguese cheeses and fresh cheese under the Paiva label. … Indian private equity fund Kedaara Capital paid Rs1,200 crore (about US$144 million) for a majority stake in southern Indian ice cream maker Dairy Classics Ice Creams (known as Dairy Day). Dairy Day is in the midst of a project to expand capacity by 75%. The company supplies about 50,000 retailers in India. … Maola Local Dairies, a subsidiary of Maryland and Virginia Milk Producers Cooperative Association, acquired HP Hood’s extended shelf-life UHT dairy processing factory in Philadelphia. The plant produces coffee cream, half & half and other extended shelf-life products. (Company reports; The Economic Times, 3/21/24; Just Food, 3/20/24)

Michigan Milk Producers Association (MMPA) is partnering with India’s Gujarat Co-operative Milk Marketing Federation Limited (GCMMF)—also known as Amul—to manufacture Amul-branded fluid products in the United States. MMPA said the strategic partnership will enhance the co-op’s “growing and diversified product mix while utilizing our state-of-the-art technology.” The products will be sold in specialty stores throughout the Midwest and East Coast. … Local authorities approved a $120-million expansion plan for HP Hood’s manufacturing facility in Genesee County, New York. The project, originally announced in mid-2023, expands the company’s refrigerated warehouse and includes new processing capacity for extended shelf-life drinks. The estimated completion date is the first quarter of 2025. (Company reports; The Buffalo News, 3/7/24)

Qatar-based vertically integrated dairy firm Baladna and the Algerian government are reportedly set to sign a deal to bolster domestic Algerian milk powder capacity by 200,000 MT annually. Media reports indicate Baladna would build a farm 250,000-acre dairy farm in Adrar, Algeria, but details on construction of a facility to process the milk remain unknown at press time. (USDEC Middle East/North Africa office; Doha News, 4/3/24)

While Chinese milk production growth continued to steam ahead in 2023, farmgate prices dropped precipitously (continuing a downward trend from record highs that began in late 2021). The latest numbers show Chinese raw milk below the cost of production, with anecdotal reports of farms culling herds, a situation that could presage a milk production slowdown ahead. Those market dynamics show in the latest corporate reports of two of the country’s major milk producers.

• Modern Farming Group increased YOY raw milk sales by over 9% in 2023 to 2.55 million MT. The company’s revenue grew 9.5% to US$1.86 billion. However, net profit decreased by 68% YOY to US$26 million. Modern Farming blamed the decrease on lower raw milk and beef prices.
• China Shengmu saw 2023 revenue grow by 5.5% to US$486 million. Net profit, however, plummeted by 79% YOY to less than US$12 million. (USDEC staff; China office)

A growing consumer focus on maintaining personal health and an increasing awareness of the health benefits of certain foods are driving new dairy product innovation designed to improve factors ranging from gut health and sleep to energy and focus. A few recent examples include:

• Nestlé China launched a new milk powder for adults designed to support sleep quality. The powder is called Yiyang Wanning and is targeted at consumers aged 40-60. It contains tryptophan sourced from WPC, mulberry leaf extract, magnesium, zinc and protein, in a proprietary blend that the company says has shown to reduce the time to fall asleep by 15% in clinical studies. Nestlé officials linked the product launch to the Chinese government’s Healthy China 2030 initiative, a priority of which is to improve sleep quality and duration among Chinese adults.
• In Japan, Meiji introduced a new functional milk beverage that the company claims supports eye health and improves sleep quality. Meiji Eye and Sleep W Support contains crocetin, a carotenoid derived from gardenia fruit and saffron, that Meiji says is easily absorbed by the body and has been reported to alleviate the eye’s declining ability to focus due to excessive computer work, as well as improve sleep depth and relieve sleepiness upon waking. The company is targeting young to middle-aged Japanese consumers based on research that shows an increasing number of this age group say they are experiencing fatigue, sluggishness and eye strain. It is currently available via Meiji’s home delivery service.
• Japan’s Morinaga Milk plans to roll out several new Foods with Function Claims (FFC) targeting major health concerns of local consumers. The lineup include Bifidus Yogurt Bone Density Countermeasure, a dairy beverage that Morinaga bills as good for both bone and gut health.
• And in response to the expectations of Chinese consumers to move beyond fortification and offer products that include clean labels and high protein content, Yili Group launched Changqing premium protein artisan yogurt. The company says the yogurt has 1.6 times the protein of regular yogurts but is made using a natural fermentation process that eliminates the need for adding protein powders or other supplemental ingredients. Yili expects demand for clean labels to increase among Chinese consumers in the coming year. (Dairy Reporter, 3/21/24; Food Navigator Asia, 3/19/24, 3/13/24; Nutra Ingredients-Asia, 3/19/24)

As part of Synlait Milk Ltd.’s ongoing struggles, the company missed a NZ$130m (about US$77 million) debt repayment deadline on March 28. The company, which sought a letter of support from its largest shareholder (China’s Bright Dairy) was granted a repayment extension until July 15. Synlait’s half-year 2024 report signaled additional challenges ahead. While revenues increased 3%, the company reported a net loss of NZ$96 million (about US$57 million) for the six months ended Jan. 31, 2024. It received a letter of support from Bright that included a commitment to participate in a future equity raise and to extend a loan at the request of Synlait (subject to approval). But it lowered its guidance. Synlait’s previously announced guidance stated that EBITDA performance was expected to be flat or down compared to FY23—it now expects the FY24 EBITDA result to be significantly down on FY23. The company cited softening demand and/or margins across business units; adverse foreign exchange and product mix; and increased operating expenses for the expected decline. (Company reports; Just Food, 3/28/24)

California biotech company, Triplebar Bio Inc., and Netherlands-based FrieslandCampina Ingredients announced they will produce lactoferrin through precision fermentation to meet increasing global demand. The collaboration is part of a multi-year, multi-country strategic partnership announced last year to develop and scale up the production of cell-based proteins using precision fermentation. (Food Navigator USA, 3/26/24)

Oregon-based Tillamook County Creamery Association (TCCA) President and CEO Patrick Criteser plans to step down this year. The TCCA Board of Directors selected David Booth, TCCA's current executive vice president of brand growth and commercialization, to succeed Criteser at the farmer-owned cooperative. TCCA said the move aligns with its long-standing succession plan. Criteser, who has led Tillamook since 2012, will remain CEO until later this year, while Booth immediately assumes the role of president. Upon Criteser's departure, Booth will move into the role of president and CEO. Booth joined TCCA in 2015 and has nearly 30 years of executive experience, including 18 years at ConAgra Foods. (Company reports)

Milk product manufacturer Canada Royal Milk received regulatory approval from the Canadian Food Inspection Agency (CFIA) and Health Canada to begin producing infant formula in its Kingston, Ontario, facility. A statement from the company, which was set up by China’s Feihe Milk in 2019, said the first batch of infant formula is expected to be available throughout the Canadian marketplace this summer. (Company reports)

Lactalis is consolidating its Australian yogurt and desserts operations by closing its plant in Echuca, Victoria, Australia, and moving production to its facility in Bendigo, Victoria. The company also said it would invest A$85 million (about US$56 million) in its supply chain in the state of Victoria over the next three years. ... As part of the sale of its Russian operations in response to the government takeover of assets in the country, French food giant Danone initiated the dissolution of DanoneBel, its last subsidiary in Belarus. (Just Food, 4/10/24; Kyiv Independent, 4/5/24)

Beth Ford, CEO of USDEC member Land O’Lakes, was named to Time’s list of the “100 Most Influential People of 2024.” Time cites Fords work “at the forefront of a national effort to invest in America’s rural communities, from wider broadband coverage, to helping farmers adapt to the changing climate, to stronger trade efforts and more funding for agricultural R&D.” Click here to go directly to Ford’s entry.

In a move designed to shift resources toward high-value products, New Zealand dairy cooperative Fonterra said it will close two of its dairy processing plants in its manufacturing sites in Waikato. A Fonterra official cited aging assets and declining productivity for the closures of Waitoa PDC (specialty powders) and the site’s coal center, along with two dryers at Te Rapa. The impacted operations will close near the end of this year. Efforts are being made to redistribute affected employees at the site, and Fonterra’s specialty nutrition dryer and UHT plants at Waitoa will continue to operate. Previous reports have indicated competition for milk is heating up in the Waikato region with the arrival of Olam Food Ingredients, a Singapore-based agricultural company that has been targeting Fonterra dairy farmers for supply. (Waikato Times, 4/11/24)

New Zealand’s Westland Milk Products reported a profit of NZ$56 million (about US$33 million) in 2023. The company attributed the record profit to strong sales of high-value dairy products like butter. Westland CEO Richard Wyeth said the company’s backing from China’s Yili Group has enabled Westland to invest in infrastructure that will maximize revenue from high-margin products, including a new lactoferrin plant at the company's Hokitika plant. That development is expected to reduce reliance on traditional high-margin revenue sources like infant formula for China (as import demand in that sector softens).Wyeth also said the company’s Hokitika butter plant has allowed the company to expand strongly by providing Westland-produced butter to Walmart stores in the U.S, and Costco stores in the U.S., Korea, Taiwan and New Zealand, with more international regions planned. He added that the company will continue to divert more milk solids into higher-value products in 2024. (Company reports)

Laticínios Porto Alegre, the Brazilian subsidiary of Emmi Group, will acquire a majority stake in the Verde Campo dairy, a Coca-Cola-owned manufacturer of dairy products, including yogurt and milk drinks made with whey protein. A statement from Emmi said the deal will allow Emmi to consolidate and improve its position in the Brazilian market while “reinforcing the value of our portfolio with a strong brand and a focus on functional premium dairy products.” … As part of its strategy to acquire businesses to grow its Better Nutrition platforms, Ireland-based nutrition firm Glanbia entered an agreement to acquire California-based natural and organic flavor maker Flavor Producers from Aroma Holding for an initial consideration of $300 million. The transaction is expected to close in the first half of FY 2024. Flavor Producers will operate under Glanbia Nutritionals. (Company reports; Food Manufacture, 4/15/24)

Finland-based Valio said it will close two of its Finnish food and drinks manufacturing facilities and transfer those operations to its Riihimäki plant, which currently processes fresh dairy products and Valio’s Oddlygood brand of plant-based snacks. The company said that shutting the two sites would “improve production efficiency and profitability.” The closures are expected to occur no sooner than the first half of 2026. … U.S. biomass fermentation start-up Superbrewed Food said it has sold its Minnesota manufacturing facility and is looking for a larger site. The company, which recently formalized its manufacturing partnership with German ingredients giant Döhler, said the scale of production of its initial commercial volumes will exceed the capacity of its existing site. (Just Drinks, 4/9/24; FoodBev Media, 4/15/24)

Denmark-based Arla Foods Ingredients reached an agreement to acquire the whey nutrition business of UK-based dairy company Volac, which specializes in whey ingredients for sports nutrition. The acquisition includes Volac’s whey processing facility in Felinfach, Wales, which Arla says will become a “global production hub and a cornerstone of an enhanced product offering in the performance, health and food sectors.” The acquisition is expected to be completed later this year and is subject to regulatory approval. (Company reports)

In its Climate Transition Action Plan released last week, Minnesota-based General Mills said, “accelerated action to reduce methane is essential to avoiding the worst impacts of climate change.” As a result, the company said it is working to reduce methane emissions on dairy farms by 40% by 2030 through manure management, rotational grazing, feed optimization, and cow health and longevity. Other planned actions include advancing and scaling whole-farm dairy principles across supply sheds and advancing adoption of regenerative agriculture. In December of 2023, General Mills joined the newly formed Dairy Methane Action Alliance, which is led by the Environmental Defense Fund and also includes Danone, Kraft Heinz, Nestlé, Group Bel and Lactalis USA. The company said through the alliance, it commits to “transparent accounting and public disclosure of methane emissions within our dairy supply chain and to creating a comprehensive methane reduction action plan in 2024.” (Company reports; Food Dive, 4/18/24)

In its FY 2023 annual results, French dairy giant Lactalis reported revenue grew 4.3% from the previous year to €29.5 billion (about US$31.5 billion), and consolidated net profit grew a “weak” 11% to €428 million (about US$457 million). A company statement cited inflation-driven changes in consumer purchasing behaviors—including higher demand for private label brands—for the performance. Lactalis also noted a slight increase in profit margin, an uptick credited to “organic growth and the continued strengthening of Lactalis in North America.” The group invested more than €920 million (about US$982.3 million) in 2023 to “develop new products, modernize its dairies and cheese factories in France and North America and reduce its environmental impact.” (Company reports, Just Food, 4/19/24)

Emirates Industry for Camel Milk and Products, which is based in Dubai and operates as ‘Camelicious,’ is investing in Asian expansion, with a focus on China. The company claims demand for its camel milk in China has surpassed domestic demand in the UAE. Currently, two-thirds of Camelicious’ production of milk powder is exported to China. “We have also grown our exports to Singapore and Malaysia in recent years and are now looking to expand our footprint in markets such as Japan and South Korea,” said CEO Mutasher A. Latef Albadry. Camelicious is optimistic of 15-20% organic growth annually and is looking at franchise partners to sell its brand in the target markets. (USDEC Middle East and North Africa offices)

Dallas-based Daisy Brand plans to build a new sour cream and cottage cheese dairy processing facility in Boone, Iowa. The $708 million investment will bring 255 jobs to the community. … California-based Chipotle Mexican Grill opened its first outlet in the Middle East this week in the largest shopping mall in Kuwait City. The location is run by Kuwait-based franchise operator Alshaya Group, which says it plans to open a restaurant in Dubai later this year and has four new locations planned for the region in 2024. … Weeks after filing for Chapter 11 bankruptcy protection in Chicago, Illinois-based Oberweis Dairy disclosed plans to close its North Aurora, Illinois, plant. Oberweis also said it received a bid to purchase its operating assets from the founder of Chicago-based dairy company Dutch Farms. (Dairy Herd Management, 4/18/24; Bloomberg, 4/22/24; FoodBev Media, 4/24/24)

Darigold named Allan Huttema as its CEO. Huttema had been appointed interim CEO in December to replace Joe Coote, who left the dairy company to return to his native Australia. Huttema has been an Idaho dairy farmer and Northwest Dairy Association member-owner for more than 25 years. The board said it chose Huttema for continuity of leadership and because it believed “a strong connection between the company and its farmer-owners is important as we look to complete our Pasco project and build the on-farm capacity we will need as we begin operations there.” Prior to being named interim CEO, Huttema served as a Darigold director for nine years and chairman for the previous three. Tony Freeman, who had been vice chairman of the board, was chosen to replace Huttema as new chair. (Company reports)

Following extensive 2023 losses, Belgium-based dairy cooperative Milcobel said it will reorganize the company to make it more flexible, efficient and resilient for the future. A statement from the company, which saw a net loss of 3.7% in 2023, cited rising costs and the turbulent dairy market for the need for flexibility, adding that the major financial impact the company incurred from the implementation of an SAP software package in its Consumer Products division revealed the need for a “different organizational structure in order to achieve greater synergies.” The reorganization plan includes integrating its dairy units to work together more efficiently in a flatter structure, and scaling back milk powder activities beginning in September of this year. (Company reports)

Challenging global market conditions ranging from inflation to growing market competition weighed on Irish dairy companies in 2023, as is seen in their most recent financial performance results.

• In its latest annual report, Ireland’s Lakeland Dairies saw 2023 revenues drop €300,000 to €1.6 billion (about US$1.7 billion) and operating profits sink from €32.5 million (about US$35 million) to €14.8 million (about US$16 million), compared to the previous year. The dairy processing co-op said these results were significantly influenced by the “global dairy market collapse.” The co-op said its Food Ingredients business had been “most exposed” but that its Consumer Foods division saw “solid demand throughout the year on the domestic front and inroads being made internationally.” Looking forward, Lakeland Dairies Chairperson Niall Matthews said recent market volatility and regulatory and policy uncertainty has prompted the co-op to shift its strategic focus. “Following rapid dairy industry growth and the expansion of milk production and processing over the past decade, the industry is transitioning from a supply volume perspective into more value-added product positioning,” he said. “We are making very definite steps to move up the value-add chain to support the long-term operations of our farm families.”
• In its FY 2023 results, Irish dairy cooperative Ornua reported turnover dipped almost 1% from 2022, and operating profit dropped by 8%. The owner of the Kerrygold brand called the results a “strong performance” in light of “continued market pressures and evolving consumer demand and buying behavior across all key markets.” As part of its efforts to grow the brand globally, Ornua opened a new flagship butter production facility in 2023 that doubled its Kerrygold Park cream processing capacity, enabling it to produce nearly 1 million retail packs per day. Looking ahead, the company said it expects the dairy market will stabilize in the first half of the year before firming in the second half, and that global milk pricing is likely to be stable for 2024.
• Ingredient, flavor and cheese producer Carbery Group also reported a decline in turnover and operating profit for 2023. Group turnover for the company was down 11% from 2022, and Group EBITA dropped 22% from the previous year, results the company characterized as “resilient in an unpredictable market.” Factors cited by the Cork-based company as affecting performance included consumer cost-of-living concerns, high dairy supply from 2022, geopolitical tensions and supply chain disruptions. The company report noted the opening of the Carbery Group Asia Business and Innovation Centre in Singapore as a “significant investment in the region.”
• In its FY 2023 annual results, Aurivo Dairy Ingredients reported revenue down by 16.4% compared to its record year in 2022, and operating profit off by 71.4%. While the company said its Dairy Ingredients business experienced a “very tough” 2023 due to market conditions, its commercial and new product development team continues to “implement our strategic goal of broadening our product range and the customers we serve.” Examples noted in the report include growth in Central America, the Middle East and Southeast Asia, which now make up more than 40% of annual sales, and two new Aurivo powder brands that are gaining traction in global markets.
• Arrabawn reported a 20% drop in 2023 turnover and a record operating profit that jumped 12.5% from the previous year. The co-op cited difficult weather conditions and high input costs for the revenue drop but said despite falling markets, 2023 was “one of the most successful in the history of Arrabawn.” CEO Conor Ryan said performance was aided by substantial investments made to Arrabawn’s manufacturing business, including a new entrance and milk intake area at its headquarters. Looking forward, he said the company hopes to complete upgrades to the plant this year, and that “our capacity and ability to produce a range of dairy ingredients on the Nenagh site allows us to widen our network of customers and markets.” (Company reports)

Minneapolis-based General Mills is reportedly exploring the sale of its North America yogurt business, which includes its Yoplait brand. Insiders estimate the deal could potentially be worth $2 billion. … After buying a 10% stake in Lithuanian dairy business Rokiškio Sūris in 2017, New Zealand dairy cooperative Fonterra said it will sell its shares as part of a “strategic long-term review of investments.” Rokiškio Sūris, which makes butter, cheese, milk powders and whey protein, plans to buy back the shares, which are valued at €7.9 million (about US$8.5 million), this month. … Simply Good Foods, a Denver-based developer, marketer and seller of branded nutritional foods and snacking products, announced it will purchase Only What You Need (OWYN), a leading plant-based ready-to-drink protein shake brand, for $280 million. … Chinese billionaire Xianfeng Lu and his Moon Lake Investments business plan to sell Australia’s largest dairy farming operation. Moon Lake purchased dairy producer Van Diemen’s Land Co. (VDL) in 2016, but has faced significant criticism about effluent issues, alleged animal welfare practices and farm management problems. The businessman has already sold off around half of the land (originally 47,000 acres) and more than a quarter of VDL’s estimated 19,000 dairy cows. After Fonterra cancelled a major milk supply contract with the company this February, it has reportedly culled at least another 700 head. (Company reports; Australian Financial Review, 4/29/24; Reuters, 4/26/24; The DairyNews, 4/19/24)

As part of increasing efforts to develop products for the growing number of young, single Chinese consumers who live alone, Pizza Hut China reportedly launched a new product called a Pizza Burger. The burger, which includes bread made from pizza dough and topped with mozzarella and parmesan cheeses, is available in four flavors. … Saudi Arabi’s Almunajem Foods Co. is building a $42-million food factory to produce meat and dairy products. The company did not offer details on what types of dairy. It expects to complete construction in the first quarter of 2026. (USDEC China Office; USDEC Middle East/North Africa office)

Chicago-based Mars Inc. announced the launch of a sustainable dairy plan as part of its efforts to cut greenhouse gas (GHG) emissions by 50% by 2030. As part of the plan, which commits $47 million over three years, Mars will work with a cohort of industry partners to implement on-farm interventions focused on areas including enteric methane reduction, efficient manure management and sustainable feed production. It includes a collaboration with Netherlands-based dairy cooperative FrieslandCampina for a program that will dedicate a group of farms to Mars' dairy supply and serve as a platform where new practices and innovations can be refined and scaled-up, with an ultimate goal of broader adoption across the entire co-op. (Company reports)

U.K.-based dairy cooperative Dale Farm said it is investing £70 million (about US$75 million) in its Dunmanbridge, Northern Ireland, cheddar processing facility. The expansion will include enhanced technologies and equipment that the company says will boost production by 20,000 MT per year to meet growing customer demand across the UK, Europe and beyond. The expanded operations are expected to begin in February 2025. (Company reports)

Some major Chinese dairy processors struggled amid slow growth in 2023, a year marked by a continuing low birth rate and other challenges in the sector. Even processors based in nearby markets but serving China cited difficult Chinese market conditions for their own struggles.

In Japan, Meiji Holdings cut its forecast profit due to impairment charges that the dairy company said it is incurring “on non-current assets related to the drinking milk and yogurt business operated by subsidiaries in China.” In a company filing with the Tokyo Stock Exchange, Meiji said, “the sales environment for the drinking milk and yogurt business in China has been significantly changed. The price competition in the market intensified, leading to a decline in our profitability.”

• Shanghai Milkground Food Tech net profit dropped nearly 54% in 2023 while revenues fell 16% from the previous year. The company said the rising cost of raw materials resulted in a year-on-year decline in the gross profit margin of the company's cheese segment. In 2023, the cheese segment accounted for nearly 99% of the company’s total gross profit, up 3% compared to the previous year. Revenue dropped from ready-to-consume nutrition products (such as lollipop-shaped cheese) and “cooking cheese” (such as cheese slices). In the future, the company plans to diversify the consumption scenarios of cheese products. The company has seen some slight improvements in the first quarter of 2024, with down only 7% YOY and net profit up 71%.
• Mengniu Dairy’s profits dropped 9% YOY to US$664 million in 2023, a decline the company attributed to higher tax expenditures and reduced earnings. Revenue lifted 6.5% YOY to US$13.6 billion. The company said its core fluid milk business experienced continuous growth, driven in part by market share gains made by its flagship “Milk Deluxe” product. It also noted its global expansion, including the growth of its ice cream business in Southeast Asia, where it says its Aice brand reached the top market share position in Indonesia while also entering Thailand, Vietnam, Cambodia and Laos.
• In its FY 2023 report, China Feihe said group revenue declined 8% and group profit dropped 33% from the previous year. The Chinese organization blamed China’s low birth rate and competitiveness in the dairy industry for the decreases. Feihe’s infant milk formula business, which comprises more than 90% of its entire business, saw revenues drop 10%. But its other dairy products, including liquid milk and adult milk powder, saw revenue climb 23%. Looking ahead, Feihe Chairman Leng Youbin believes the infant formula milk market in China will remain stable and be driven by premium products in 2024. (USDEC China office; Company reports; Just Food, 4/9/24; Food Navigator Asia; 4/9/24 Yicai Global, 3/27/24)

Irish dairy co-operative Tirlán reported 2023 results the company characterized as “reflecting a resilient performance during an extremely challenging year for the Irish dairy, grain and wider agriculture sector.” Turnover fell 17% from the previous year, a drop the company attributed to lower commodity market prices. Profits fell 5%, with the company citing factors including inflationary pressures and its commitment to supporting farmers through a difficult year. The company said Tirlán’s dairy business continued to grow new markets, noting in particular the expansion of its Avonmore brand Professional UHT range in China and Vietnam, and entering the new markets of Malaysia, Thailand and the Philippines in Southeast Asia. Looking forward, the company said it will continue to focus on adding value to its portfolio through ongoing product innovation to grow international markets. (Company reports)

Netherlands-based FrieslandCampina moved its UK headquarters and opened a new technology center in Malaysia as part of a push to upgrade its overseas operations. A desire to create a “more modern and dynamic” workspace ahead of expanding in the U.K. and Ireland led the company to relocate its U.K. headquarters from West Sussex to London. In Malaysia, the company’s new Technology Excellence Centre will focus on expanding global IT initiatives to impact the future operations of FrieslandCampina’s seven business groups. Operations at the center, which is located at FrieslandCampina subsidiary Dutch Lady Milk Industries, include data and analytics, cloud and platform engineering services, and IT service management. (Food Manufacture, 4/30/24; Company reports)

As part of its efforts to strengthen its Medical Nutrition portfolio in the U.S., French dairy giant Danone completed the acquisition of Functional Formularies, an Ohio-based whole foods tube feeding business. A Danone official said the deal will make the company “even better positioned to support the nutritional needs of tube-fed families and patients.” (Company report)

New Zealand’s Fonterra Co-operative Group announced it was exploring divestment options for its global consumer business and its integrated businesses Fonterra Oceania and Fonterra Sri Lanka—operations that collectively accounted for NZ$7.2 billion (about US$4.7 billion) in revenues in 2023. “We believe we can grow further value for the co-op by focusing on being a B2B dairy nutrition provider, working closely with customers through our high-performing Ingredients and Foodservice channels,” said CEO Miles Hurrell. It would be a massive change for Fonterra that includes selling several domestic and global retail brands, such as Anchor, Mainland, Anlene, Anmum and Fernleaf. The Fonterra Oceania business also includes foodservice and ingredients segments, and Fonterra Sri Lanka sells to the foodservice sector. The business also includes 17 manufacturing sites (nine in Australia and others in New Zealand, Indonesia, Malaysia, Sri Lanka and Saudi Arabia). Together, all the operations on the chopping block accounted for 19% of Fonterra’s earnings in the first half of fiscal 2024. “A divestment of these assets would help create a simpler, higher performing co-op with our focus on our core Ingredients and Foodservice business and doing what we do best,” said Hurrell. Fonterra said it had previously received unsolicited interest in parts of the businesses. The company plans to appoint an advisor to assist with divestment options. The process should take 12-18 months and require shareholder approval. In conjunction with the announcement, Fonterra Global Markets CEO Judith Swales is stepping down effective July 31, 2024. (Company reports)

Canada-based Saputo announced that President and CEO Lino Saputo will transition to the role of executive chair of the board later this year. The company said Carl Colizza, currently president and COO for North America, will step into the role as the new president and CEO. Colizza joined Saputo in 1998 as an engineer, and has held several senior management positions in the Dairy Division, including leading the Dairy Divisions in Canada and Argentina. He was named President and COO of North America in 2019. The transition is scheduled to take effect on Aug. 9, the day of the company’s annual general meeting. (Company reports)

The British arm of Denmark’s Arla Foods announced plans to invest more than £300 million (about US$324 million) across five of its UK sites in 2024. The investment will update and expand Arla’s dairies in an effort to create more opportunities for British milk and cheese production. In a company statement, Arla said the investments will allow its Lockerbie Creamery to expand and grow over the coming years. In Stourton, the upgrades will expand Arla’s capabilities in ESL milk, as well as introduce a capability to supply milk in cardboard cartons. Aylesbury, which is the U.K.’s biggest fresh milk site, will get additional automated box packing capabilities, which will give customers greater flexibility with packaging formats. At Arla’s Taw Valley Creamery, the company will incorporate state-of-the-art technology and new jobs that will enable the business to export mozzarella around the world. Arla said it will explore further milk powder export opportunities related to investments at its Westbury facility. (Company reports)

To promote sustainable development practices across the Sino-French dairy industry, China’s Mengniu Dairy Co. and France-based Bel Group signed a “Sustainable Development Cooperation Proposal.” Under the agreement, both companies will collaborate to address climate issues by sharing best sustainable development and food decarbonization practices, including low-carbon farming practices, nutritional awareness programs and the fight against food waste. Joint initiatives outlined in the agreement include research and development to promote sustainable and regenerative agriculture practices; sharing expertise and applying it to their dairy production processes to optimize carbon emission management; and exchanging solutions for sustainable dairy product packaging and adopting more sustainable packaging processes and materials. The companies also said they will collaborate on public welfare initiatives including the “Nutrition for All” campaign for children and adolescents. (Company reports)

In response to a drop in milk volumes, Irish dairy co-operative Dairygold said it will reduce cheese production over the coming summer months. The processor said the decision was made in response to a 9% decrease in milk output this year compared to the same period in 2023, and an anticipated decline of 7% for the full year. Irish dairy farmers have been struggling with extreme wet weather in 2024, and year-over-year milk deliveries throughout the country have been down significantly since the last quarter of 2023. A company spokesman said these challenges are making it “necessary for us to adapt and redistribute our milk volumes to other areas of our operations.” (The Dairy News, 5/21/24; Agriland, 5/20/24)

China’s Yili Industrial Group Co. reported a record-breaking operating income of 126.2 billion yuan (about US$17.6 billion) for 2023. The company said its liquid milk business posted an operating income of 85.5 billion yuan (about US$11.9 billion) and that revenue from its milk powder and dairy products increased 5% from the previous year. Yili also said its overseas business increased by 10% from the previous year, with products sold to more than 60 countries and regions, including notable growth in Southeast Asia and Africa. The company credited improvements in its global supply chain network and continuous adoption of new technologies for its performance, including the ongoing construction of the new lactoferrin factory of its Westland Dairy subsidiary and the development of a new “lactoferrin directional extraction and protection technology, which increased the lactoferrin retention rate in UHT milk from 10% to over 90%.” (Company reports)

After announcing in January that it was assessing options for the release of its interest in its Froneri ice cream joint venture with Nestlé, Paris-based private equity firm PAI Partners is reportedly in talks with investors to maintain its 50% stake in the business. Reports indicate the company is exploring a continuation fund to house the investment. (Bloomberg, 5/10/24)

Mexican ice cream brand Tropicale Foods said it will close its Modesto, California, plant and shift production to its existing facilities in Lubbock, Texas, and Ontario, California. The closure, which will affect nearly 300 employees, is expected to occur on July 19. … Norway-based Kavli introduced a new dairy brand in the UK with the launch of a line of whipped cheddar spreads. The new products are currently available in Tesco stores, with plans for further rollouts later this year. (The Dairy News, 5/21/24; The Modesto Bee,5/16/24)

Finland-based Valio is investing more than €60 million (about US$65.2 million) to enhance its cheese production plant in Lapinlahti. The investment includes adding about 22,000 square feet to its existing facilities, replacing outdated manufacturing equipment, renewing packaging operations and equipment, and adding a new power substation and back-up power. Construction on the plant, which is one of Valio’s largest, will begin this summer, with the enhanced operations to begin in spring of 2026. (Company reports)

Fonterra Co-operative Group’s Anlene business in Indonesia launched a new adult milk powder containing habbatussauda, a black seed with many purported health benefits that is revered by Muslim consumers. The seed, which is commonly called “black seed” or “black cumin,” has been used medicinally for centuries in Southeast Asia and claims to offer health benefits ranging from heart health and weight loss to boosting memory, fighting inflammation, and treating coughs and colds. The product, called Anlene Gold 5X habbatussauda, was soft launched in more than 2,700 stores across Indonesia during the month of Ramadan, with a formal product launch to follow. (FoodNavigator-Asia, 5/21/24)

To meet increasing global demand for medical nutrition, French dairy giant Danone invested €70 million (about US$76 million) in its Steenvoorde production facility in France. The majority of the investment (about US$65 million) will go toward producing roughly 30 recipes of the company’s oral nutritional supplement under its Nutricia specialized nutrition range. The remaining investment will be used for new infrastructure, including a biomass boiler that aims to reduce the site’s carbon footprint by 70%. The site is expected to produce nearly 20 million liters of medical nutrition products per year. (The Manufacturer, 5/23/24)

In a move to strategically expand into adjacent segments of the dairy market. Italy-based dairy group Sabelli has acquired fellow Italian cheese producer Stella Bianca from Mila Cooperative. The deal is expected to be completed next month. … Private equity firm Hoffmann Family of Companies (HF Companies) bought Oberweis Dairy and its assets in a bankruptcy auction. The Hoffmann bid beat an initial offer for Oberweis from the owner of dairy and egg marketer Dutch Farms. HF Companies said it did not plan to close the Oberweis processing plant in Aurora, Illinois. (NBC Chicago, 5/30/24; Just Food, 5/24/24)

Japan’s Meiji held an opening ceremony to celebrate the start-up of its new US$90-million ice cream plant in Shanghai (which began commercial production in late March). … Fonterra’s Anchor Food Professionals is switching distributors in China. Effective Aug. 1, the company will partner with Maihi Ltd., a subsidiary of Uni-China Business Group that specializes in food trading and foodservice. Anchor currently works with Sims Trading. The new relationship is expected to further help increase penetration in the Chinese bakery sector. … Yum China signed a cooperation agreement with state-owned China Supply and Trade Group to focus on expansion in lower-tier cities. … Israel-based food tech startup NewMoo has developed a new technology that uses plant molecular farming to produce casein proteins that it claims can be used to create animal-free cheese alternatives. Click here to read more about the innovation and how it differs from current dairy-free production methods. (USDEC China office; FoodBev Media, 5/28/24)

New Zealand dairy producer Synlait Milk continues to face difficulties as it works to overcome high costs, declining sales and unpaid debt. More than half of its 300 suppliers have reportedly notified the company that they intend to stop supplying milk after their current contracts expire. A company statement downplayed the potential exodus, saying the notices signal that the farmers “want to see Synlait’s balance sheet deleveraged, so advanced rates can be lifted further, and submitting a cessation notice provides an option, rather than a clear intention to sign with other processors.” To reduce its debt, the company is working to sell its manufacturing plants in Auckland and Pōkeno, and is also looking to sell its consumer Dairyworks business, which owns brands such as Rolling Meadow. Synlait also agreed to the terms of a NZ$130 million (about US$80) loan with its major shareholder, China’s Bright Dairy (subject to a pending shareholder vote). The company expects to draw down the full amount of the loan to meet its prepayment obligation to the company's senior lenders, which is due on July 15. (Company reports; The Post, 6/3/24; Radio New Zealand, 6/3/24)

Dutch Lady Milk Industries Berhad (DLMI), a subsidiary of Netherlands-based Royal FrieslandCampina (RFC), opened a new dairy plant in Malaysia that the company says will be able to double its production capacity to meet the growing demand for high-quality and nutritious dairy products in the region. Previous statements from DLMI said the new production facility “will revolutionize our supply chain processes to enable us to produce DLMI’s range of nutritional products, with the added scalable capacity to manufacture other innovative variations in the future driven by consumer trends and occasions.” The company said the plant is also designed to achieve a 30% reduction in energy and water consumption by 2030, compared to its 2022 baseline. (Company reports, Dairy Industries, 4/20/21)

Idaho-based Suntado opened a 190,000 sq.-ft. production facility in its headquarters city of Burley. The new plant can handle more than 450 MT of raw milk per day, processing it into shelf-stable and ESL milk as well as other fluid dairy products. The site opening comprises phase one of a three-phase project the company projects will triple future capacity. (Food Engineering, 5/30/24)

Müller UK & Ireland, the British division of German dairy manufacturer Unternehmensgruppe Theo Müller, is acquiring West Lancashire-based Yew Tree Dairy, a maker of milk powder, fresh milk and cream. Muller plans to use Yew Tree’s powder capabilities (Yew Tree operates a drying facility in Skelmersdale, West Lancashire) to become a major producer and exporter of powdered milk products. “This acquisition will enable us to tap into global dairy consumption growth, unlock additional export opportunities and continue to drive supply chain resilience,” said Rob Hutchison, CEO at Müller Milk & Ingredients. (Company reports)

Ireland’s Lakeland Dairies is asking £9.5-11 million (US$12-14 million) for its site in Banbridge, Co. Down, Northern Ireland. The co-op shuttered the butter manufacturing and powder storage facility (and two other sites) earlier this year as part of a restructuring plan announced last fall. Sweden-based dairy alternative company Oatly confirmed it has scrapped plans for its first UK plant-based beverage facility. The company said it is “identifying new ways to serve the UK market [by] utilizing existing facilities across Europe.” … California-based dairy processor Clover Sonoma named John Coletta as its new CEO effective July 1. Coletta, who has 35 years of food industry experience, succeeds retiring CEO Ken Gott. (Company reports; BBC, 5/30/24; Agriland, 5/30/24)

Citing a decrease in milk production volumes, German dairy co-op DMK Group said it will close its Dargun site and reduce capacity at its sites in Edewecht, Hohenwestedt and Everswinkel. A company statement said optimizing its plant structure and product portfolio must include strengthening products with higher added value and reducing those with lower returns, and that the affected sites mainly produce “standard products.” The company expects to implement the measures, which affect roughly 150 employees, by spring 2025. (Company reports)

In its results for the fourth quarter and fiscal year ended March 31, 2024, Canadian dairy processor Saputo reported revenues increased 1.7% and net earnings dropped 42.1%. Chairman, President and CEO Lino A. Saputo said the company has completed the bulk of the major capital projects under its Global Strategic Plan (GSP) and is ramping up commercial production at several of its facilities. U.S. priorities for the near-term include executing on the planned closures of the Lancaster, Wisconsin; Big Stone, South Dakota; Green Bay, Wisconsin; and South Gate, California, facilities and continuing to ramp up its new automated cut-and-wrap facility in Franklin, Wisconsin. Looking ahead globally, the company said it expects global demand for dairy products to remain moderate, alongside subdued international dairy market prices due to macroeconomic conditions. Priorities included in its GSP include driving retail volume through consumer advertising and innovation, onboarding new private label customers in Europe, and consolidating and rebalancing its business between domestic and export activities in Australia. (Company reports)

Japanese probiotic beverage producer Yakult Honsha will open a second factory in the Philippines to meet growing demand for its Yakult probiotic milk beverage. The $34-million facility, which is located in El Salvador City, is expected to ultimately produce nearly 2.8 million bottles per day following a “facility enhancement.” (Just Food, 6/5/24)

Three months after acquiring Sovos Brands Inc., Campbell Soup Co. said it will sell the Noosa yogurt brand from the portfolio. At the time of the acquisition, CEO Mark Clouse said yogurt would not be “core to our strategy.” (Global Food Industry News, 6/6/24)

Fonterra Co-operative Group is building a new application center in Wuhan in China’s Hubei Province. It will be Fonterra’s sixth such site in China. The company expects to open it this September. … Mona Dairy, the UK-based cheese manufacturer that launched in 2022 as a net-zero dairy that aims to pay premium prices to carbon-neutral farmers, has been placed into administration. In May, the dairy’s owners announced they were unable to secure the funding necessary to continue current operations. The dairy’s new joint administrators said they were focused on finding a solution for the business and invited any interested parties to come forward. (USDEC China office; BBC, 6/10/24)

French companies Danone and Michelin have teamed up with North Carolina-based biotechnology startup DMC Biotechnologies and Crédit Agricole Centre France to create a biotechnology platform with the goal of accelerating the development of precision fermentation. The Biotech Open Platform plans to enable the scale-up of products and processes already tested in the laboratory. The initial investment is €16 million (about US$17 million), and by 2025 the project plans to install an initial demo-scale production line, including a fermenter and purification equipment. Additional equipment is planned for subsequent years, including a second production line. (Company reports)

In the year ended December 2023, Oceania Dairy posted a loss of NZ$19 million (about US$12 million) and saw revenue drop 14% from the previous year. The New Zealand-based dairy processor, which is owned by China’s Yili Group, said in its annual report that revenue from customers within the Yili Group was down from the previous year, while revenue from external customers and other revenue, including milk sales, increased. (eDairy News, 6/10/23)

Foodservice provider Bidcorp U.K. acquired UK-based ice cream manufacturer Northern Bloc Ice Cream. Northern Bloc currently supplies retail and foodservice customers including Booths, the National Trust and Wagamama. (Yahoo Finance, 6/17/24)

Australian Dairy Nutritionals appointed Mahi Sundaranathan as its new CEO. Sundaranathan, who replaces the recently resigned CEO Peter Skene, has more than 20 years’ experience in international markets including senior roles at the a2 Milk Co., Danone MG Australia, and Fonterra brands Australia. … Lactalis is closing its manufacturing plant in Miercurea Ciuc, Romania, and will focus on its four remaining sites in the country. (Company reports; Just Food, 6/17/24)

New Zealand’s Fonterra Co-operative Group disclosed several changes to its executive team. To help lead the co-op’s shift in strategic direction, Richard Allen, Fonterra’s president Atlantic, was appointed to the role of president, Global Markets Ingredients, and René Dedoncker, Fonterra’s managing director, Oceania, was appointed to the role of managing director, Global Markets Consumer and Foodservice. In addition, the co-op said Emma Parsons, managing director, Strategy & Optimization, was appointed to the role of CEO for Kotahi Logistics LP, a joint venture between Fonterra and Silver Fern Farms that works to ensure New Zealand maintains a sustainable and secure supply chain to remain competitive on the world stage. (Company reports)

As part of its ongoing efforts to revitalize its dairy sector, the Gombe State Government in Nigeria announced a strategic partnership with Moroccan dairy company COPAG Bladna to tap into the state’s livestock resources and foster a profitable dairy business. The announcement came during Governor Muhammadu Inuwa Yahaya’s recent visit to COPAG’s largest dairy factory in Taroudant, Agadir, Morocco, which was part of an investment mission aimed at replicating COPAG’s successful dairy model on a smaller scale in Gombe. (USDEC MENA Office; Dairy Business Africa, 6/10/24)

Trade tensions within the East African Community (EAC) between Uganda and Kenya continue, despite a recent commitment from both nations to improve relations and unlock trade barriers. Kenya is historically Uganda’s largest dairy export market, but dairy farmers in surplus producer Uganda are facing stalled growth due to trade restrictions, including a ban on permits for exports to Kenya. Last year, the Kenya Dairy Board announced a halt on milk powder imports to protect its local dairy sector. In May, Ugandan President Museveni and Kenyan President William Ruto issued a joint statement advocating for removing quotas on intra-EAC trade goods, including dairy products, but so far, the restrictive measures remain in place. (USDEC MENA Office; Dairy Business Africa, 6/18/24)

Kerry Group Ireland opened a new Cheesestrings facility in Charleville, County Cork. The Kerry Group subsidiary’s new plant, which is expected to boost production by 50%, received financial support from the Irish government’s Capital Investment Scheme for Agriculture Products. Minister for Enterprise, Trade and Employment of Ireland, Peter Burke, said the investment will help ensure that Kerry Dairy Ireland “has the world-leading processing capabilities needed to continue to grow the brand globally while directly supporting the local economy here in Charleville through the creation of jobs.” (FoodBev Media, 6/20/24)

French dairy giant Danone announced its mid-term strategy and value creation journey for the 2025-2028 period, which includes building on the fundamentals of science and innovation, operational and executional discipline, and proactive portfolio. The company said it will increase its focus on Health and Nutrition by gradually pivoting the way it addresses its categories—including Protein and Gut Health; broadening some of its business models; accelerating in Away-from-home and Medical Nutrition; and further expanding its geographic footprint. (Company reports)

Canadian dairy company Saputo completed the sale of its fresh milk processing facilities in Laverton North, Victoria and Erskine Park, New South Wales, to Australian supermarket, retail and consumer services chain Coles Group Ltd. A company statement said the transaction, which is valued at approximately CDN$95 million (about US$70 million), is part of Saputo’s overall network optimization strategy, which includes adapting its manufacturing footprint to focus on higher-value growth opportunities. The two sites will continue to process fresh milk products. (Company reports)

Germany-based dairy processor DMK agreed to acquire the remaining stake in Polish sales and distribution business Mlekoma Dairy from its venture partner, Saudi Arabia-based Saudia Dairy & Foodstuff Co. (Sadafco). A DMK spokesperson said the co-op is looking to promote its branded business in Poland and will make an effort to grow its Milram brand in the country’s foodservice and retail markets. … Spain-based Idilia Foods acquired 50% of local dairy-drinks business Cacaolat from Barcelona-based beer company Damm. The agreement, which will create the largest smoothie group in Spain, is part of a move to further accelerate growth in the dairy shake market at a national and international level. … As part of its strategy to strengthen its presence in the U.K. market, Germany-based dairy company Ehrmann acquired Cornwall, England-based Trewithen Dairy. (Company reports; Just Food, 6/26/24; Just Food, 6/24/24)

New Zealand dairy processor Miraka signed a new supply and research agreement with Chinese dairy processor Theland to supply a new range of premium “low-carbon,” A2 milk products. … Irish dairy co-operative Tirlán announced a cost reduction program that includes offering a “voluntary redundancy scheme” that may put about 150 jobs at risk. The co-op cited rising operational costs and a decline in milk supply volumes for the move. … Five western Canadian dairy co-ops are building a new C$75 million (about US$55 million) “dewatering” plant in Alberta under the name Dairy Innovation West. The plant will be able to concentrate up to 300 million liters of milk per year, reducing transportation costs to manufacturing facilities. (Company reports; Dairy Global, 6/25/24; Rural News Group, 6/25/24)

Dairy companies continue to work with African farmers for mutual progress and benefits throughout the continent. In Nigerian Kano state, dairy farmers have seen significant productivity improvements as a result of investments made in the dairy value chain by Outspan Nigeria Limited, a subsidiary of Olam Food Ingredients (OFI). The investment initiative was launched five years ago in collaboration with the Kano Dairy Cooperative Union, with the goal of enhancing dairy farmers’ capacities, upgrading milk collection and storage facilities in farming clusters, and improving cattle health support. Officials in the region say the efforts have resulted in increased herd productivity and reduced open grazing, as well as enabling dairy farmers to settle in one place — both of which have reduced conflicts between Fulani herdsmen and local farmers. The investments have also reportedly enhanced the income of dairy farmers while enabling increased school attendance among their children and allowing dairy farmers’ wives to spend more time at home because they now sell their milk directly to Outspan Nigeria rather than hawking their milk in local markets. A spokesperson for Outspan Nigeria said the company will continue to consider opportunities that enable quality investments in developing the local dairy value chain to drive more productivity in dairy farming communities. In South Africa, Nestlé announced the expansion of its low-carbon dairy farming initiative. Building on the success of its Skimmelkrans Dairy pilot project in George, Western Cape, 96 farms along the Garden Route have now adopted the company’s regenerative agriculture practices to enhance sustainable milk production in South Africa. Nestlé said those 96 farms are now supplying fresh milk to its factory in Mossel Bay. Nestlé launched the Skimmelkrans Net Zero Carbon Emissions Project in 2020 with the aim of creating the company’s first dairy farm to reach net zero carbon emissions while enhancing biodiversity. The project leverages techniques such as biological pest control, zero tillage and solar power. Results from the project to date include annual averages of 500 tons of manure processed, 14.5 million liters of water recycled, and 6,000 tons of carbon sequestrated through soil work. A Nestlé official said the company is aiming to expand this initiative to inspire other dairy farms across Africa with the goal of achieving net-zero emissions by 2050. (USDEC MENA Office; Dairy Business Africa, 6/11/24; Independent Online, 6/30/24)

FrieslandCampina subsidiary Frisian Flag Indonesia announced the successful completion of the 10-year ‘Dairy4Development’ project in Pangalengan and Lembang, Indonesia. The project was launched in 2013 with six partners and the goal of increasing local high-quality milk production. Roughly 3,500 local dairy farmers participated in the initiative, which was supported by a grant of €4 million (about US$4.3 million) from the Dutch Ministry of Foreign Affairs. A FrieslandCampina statement said key project achievements include enhancements in the dairy farmers’ knowledge and skills, improved cooperative services, and increased milk productivity and quality. Valuable lessons were learned regarding improvement opportunities in areas such as barn renovation strategies, involving young farmers, and financial literacy training. (Company reports)

To support the growth of its milk-based beverage segment, Denmark-based Arla Foods invested around DKK 200 million (about US$29 million) in its Esbjerg Dairy Center in Denmark. The funds will be used to construct new buildings, install new processing equipment and for general maintenance. A company spokesman said the investment is designed to accommodate expected growth for its milk drinks business in Europe, the Middle East and Africa (EMEA). Meanwhile, Arla said it will close its Melton Mowbray creamery in the U.K. after failing to find a buyer. The plant, known locally as Tuxford and Tebbutt, produces stilton cheese and has been for sale since January. (FoodBev Media, 7/11/24; Just Food, 7/1/24)

In a move to grow its coffee and tea businesses, the Philippines’ largest restaurant operator, Jollibee Foods Corp., will acquire a 70% stake in South Korea’s Compose Coffee. … Toronto-based fast-food chain operator Restaurant Brands International (RBI) is investing $45 million to boost growth of its Popeyes and Tim Hortons brands in China. RBI said it is paying $15 million to acquire Popeyes China from Tims China, the operator of both Popeyes and Tim Hortons in the country, and investing $30 million into Tims China. (Bloomberg, 7/4/24; Restaurant Business, 7/1/24) 

Colorado-based Leprino Foods Co. and Netherlands-based precision fermentation startup Fooditive Group announced a licensing partnership that will enable Leprino to produce casein made via Fooditive’s precision fermentation platform. Under the terms of the deal, Leprino Foods will have exclusive worldwide rights to produce non-animal casein manufactured using Fooditive’s proprietary precision fermentation platform, as well as exclusive worldwide rights to market and distribute for use in cheese, and a non-exclusive worldwide license to market and distribute for all other food applications. (Company reports)

China’s large size and diverse population make localization efforts a necessity for companies looking to engage and satisfy consumers throughout the country. At the recent Food and Beverage Innovation Forum in Shanghai, PepsiCo Greater China Foods CMO Nina Mu revealed some of the different types of localization strategies the company uses for its various products, from adapting ingredients to incorporating local food customs. Click here to read more about why formulating for local markets is important and how PepsiCo is doing it successfully. (FoodNavigator-Asia, 7/9/24)

Netherlands-based Royal A-ware announced plans to acquire The Dairy Group, a Belgium-based manufacturer of dairy products for branded manufacturers and retailers under private labels. … Swiss food giant Nestlé sold its French baby food assets, including the NaturNes, Babicao and Babivanille brands and the P’tit franchises, to Paris-based investor FnB Private Equity. These assets will be combined into a new company called Azuré Holding. … In a move to expand its market presence in the premium desserts category, Swiss dairy manufacturer Emmi Group entered a put option agreement to acquire Mademoiselle Desserts Group, a French baking manufacturer that specializes in pastries, for roughly €900 million (US$974.2 million). (Company reports; FoodBev Media, 7/11/24; Just Food, 7/5/24)

French dairy giant Lactalis is investing €3 million (about US$3.3 million) to upgrade its Medellín, Colombia, manufacturing plant. The facility, one of three Lactalis operations in the country, makes UHT milk, cream and dairy desserts. … The board of directors of Great Lakes Cheese named Bob Sarver as the company’s new president and CEO effective Aug. 1, 2024. Sarver, currently Great Lakes’ executive vice president packaging operations and sales, replaces Dan Zagzebski, who has held the position since 2015. … China’s Feihe opened a new $16-million factory that can produce 10,000 MT of high-end milk powder products for both children and adults. The facility reportedly imports as much as 99% of the ingredients in the finished products. … As part of its mission to deliver sustainably sourced Welsh milk to consumers, Wales-based Pembrokeshire Creamery opened a new fluid milk processing facility that will be able to supply around 2 million liters of milk per week when it reaches full capacity. … Shareholders of New Zealand dairy producer Synlait Milk approved the proposed NZ$130 million (about US$80) loan from its biggest shareholder, China’s Bright Dairy, to pay a financial obligation that was due to its banks this week. Despite the loan, Synlait is still facing significant financial pressures: the company must come up with another NZ$180 million (about US$109 million) due this December. … Dairy Queen, through its Chinese franchise partner CFB Group, opened its first burger outlet in China. CFB plans to have 180 food-centric DQ Blizzard & Burger stores in China by 2034. … Aiming to appeal to the regional palate, Arla Foods launched a limited-edition za’atar-flavored cream cheese under the Puck label in the Middle East. Za’atar is a versatile spice blend (as well as a family of herbs) used extensively in the Middle East and Mediterranean. (USDEC China office; USDEC Middle East/North Africa office; Just Food, 7/18/24, 7/11/24; Farmers Weekly, 7/16/24; Dairy Processing, 7/16/24; FarmingUK, 7/3/24; FoodBev Media, 7/15/24) 

Saudi Arabia-based dairy company Almarai signed a Memorandum of Understanding (MoU) with 30 Exports, an export house licensed by the Saudi Export Development Authority. The collaboration aims to enhance Almarai’s role in contributing to the goals of Saudi Vision 2030 by increasing non-oil exports and diversifying the national economy's income sources through the expansion of its national products into foreign markets. Almarai CEO Abdullah bin Nasser Al-Bader said the company believes the initiative will “open new horizons for the growth of our exports and achieve future successes.” (USDEC MENA Office; Company reports)

Two new feed additive projects are furthering efforts in the dairy industry to lower methane emissions in cows through diet. English retail giant Tesco announced it is partnering with Grosvenor Farms, one of its key UK milk suppliers, to trial a methane-reducing feed supplement. As part of the trial, Grosvenor Farms, one of the original members of the Tesco Sustainable Dairy Group (TSDG), has added the methane-reducing ingredient Bovaer® to the diet of 400 cows. The supplement has been shown to reduce methane emissions by up to 30%. As a result of the enhanced feed, the carbon footprint of each cow is projected to reduce by about 1.3 MT of carbon dioxide equivalent annually. If the four-month trial is successful, Tesco hopes to expand the use of Bovaer® across the TSDG. In Tasmania, dairy producer Ashgrove began selling a product called “Eco-Milk,” a milk produced by cows fed with seaweed that makes them emit lower levels of methane gas. In February, Ashgrove began feeding about 500 of its cows an oil containing a seaweed extract that co-owner Richard Bennett says reduces the methane released by a cow's digestion by 25%. The product is available across Tasmania at retailers, including Woolworths, with a two-liter bottle selling for about 25 Australian cents more than normal whole milk. The company is gauging consumer willingness to pay more for the product and has not yet decided whether it will expand the project. (Company reports, Reuters, 7/22/24)

Switzerland-based Nestlé announced a new technology it says reduces the fat content in milk powder by up to 60%, which also lowers the calorie levels compared to full-fat milk. The key to the method is the controlled aggregation of milk proteins, where the size and texture of milk fat are mimicked by protein. A company official said the technology was successfully implemented in Ninho Adulto, a popular product in Brazil. The company said the innovation is part of Nestlé’s efforts to enhance the nutritional value, affordability and sustainability of its products and that it plans to roll out the technology across its Nido portfolio globally. (Company reports)

FrieslandCampina revenues decreased by 6.7% in the first half of 2024. The company cited lower milk prices and currency translation effects for the decline. The Dutch dairy cooperative also experienced a 3.2% decrease in milk supply in the first half of the year, which it attributed to the completion of a farmer exit scheme, a requirement by the European Commission following the 2023 finalization of the merger between Friesland Foods and Campina. Despite these figures, CEO Jan Derck van Karnebeek praised the co-op’s “strong start” which includes a five-fold jump in operating profit to €301 million (about US$326 million) compared to the first half of 2023. Looking ahead, van Karnebeek said the co-op expects to face continued economic uncertainties in the second half of 2024 and that it will increase its marketing efforts in the second half of 2024 to strengthen market positions. (Company reports)

Spanish dairy company Capsa Foods purchased a 40% stake in local cream cheese and mascarpone maker Innolact. Innolact, which generated turnover of about €25 million (about US$27 million), is in the process of expanding its factory in Castro de Rei, one of two facilities in Galicia. … Hong Kong-based Ausnutria Dairy Corp. exercised a put option to acquire the remaining 50% share of Netherland’s-based organic goat cheese cooperative Amalthea. Ausnutria Dairy, the investment holding company of Ausnutria BV that primarily serves the Chinese market from manufacturing facilities in the Netherlands, purchased the initial 50% of Amalthea in 2022. … Yorkshire, UK-based food group Regal Food Products Group entered the chilled desserts category by acquiring Lancaster-based premium cheesecake maker Love Cheesecakes. … UK-based materials technology company Xampla announced a partnership with Yili Innovation Centre Europe to deploy Xampla’s nutrient microcapsule technology. The microscopic natural polymer capsules are designed to protect ingredients in beverages from production through digestion, without changing product taste or texture, against degradation risks from UV, pH or heat shock. (Just Food, 7/22/24, 7/15/24; FoodBev Media, 7/18/24; Company reports)

China’s Yili Group opened a U.S. flagship store in Los Angeles that sells Yili brands, including AMBPOMIAL and Youngfun fluid dairy products. The store is located in the Asian supermarket chain 99 Ranch Market and was launched in collaboration with Yili’s U.S. distribution partner Walong Marketing. (Dairy News Today, 7/15/24)

Iowa-based ice cream maker Wells Enterprises increased the planned expansion of its Dunkirk, New York, manufacturing plant. The company upped its investment in the facility from $250 million to $425 million. The project will help boost production capacity from three to four million cases of ice cream to more than 20 million cases per year. Wells expects the expansion to be operational in August 2025. (Just Food, 7/25/24)

Belgian dairy cooperative Milcobel said it plans to sell its private-label ice cream producer subsidiary YSCO to two of its investors: Davidson Kempner Capital Management and Afendis Capital Management. A Milcobel official said the deal, which is subject to competition approval, will help accelerate YSCO’s position in the ice cream market while enabling Milcobel to “continue to build on the value of our dairy activities and partnerships, and to focus on our consumer cheese business and our premium dairy ingredients.” (Company reports)

New Zealand’s Fonterra Co-operative Group said the first season of production is underway for its “zero carbon” farm project. The operation, which is part of the Dairy Trust Taranaki farm group and was previously a research farm, is a collaboration between Fonterra and Nestlé Group. Its initial target is to reduce emissions by 30% by 2027. Efforts to reach that goal include improving pasture management, reducing brought-in feed, utilizing electric farm bikes and installing solar panels. Fonterra also revealed a proposal to cut finance jobs at its Waikato headquarters and outsource that work to India and the Philippines. A company official said proposed changes in the finance operations, which are part of an operating model review, “relate to us optimizing core operational efficiency to support the entire business.” (Farmers Weekly, 7/23/24; The New Zealand Herald, 7/24/24)

UK healthcare firm Reckitt Benckiser said it is exploring “all options” for its infant formula business Mead Johnson Nutrition as it and other players in the industry face complex and ongoing infant formula litigation. CEO Kris Licht reportedly said he would welcome a quick sell-off of the business but that the company is not going to rush, and it plans to “do what’s right for shareholders.” The company announced restructuring plans designed to streamline operations by removing the overarching Global Business Unit structure and focusing operations in North America, Europe and emerging markets. The company also said it plans to focus on its consumer health and hygiene brands with high growth margins, as well as future “power brands.” (Dairy Reporter, 7/24/24)

Switzerland-based Nestlé said its sales decreased by 2.7% in the first half of 2024, while net earnings for the same period came in flat at 5.6 billion Swiss francs (about US$5 billion). The company cited a challenging pricing environment for the results. Looking ahead, CEO Mark Schneider said that Nestlé Health Science is set for a strong second half, and that the company will continue to drive real internal growth by launching new products and growing its large iconic brands. At the same time, the company lowered its organic sales outlook from 4% to at least 3%, a move it attributes to increasingly cost-conscious consumers. (Company reports)

At the same time, it confirmed a buyer for its meat division, Australian dairy processor Beston Global Foods said it is in talks to potentially sell its dairy and dairy nutrition businesses. The company said that such a deal would “provide an opportunity to re-set the financial foundations of the company” and warned that “such a transaction is necessary for Beston’s continued financial viability.” … New Zealand-based corporate farming group Dairy Farms NZ is putting its seven dairy farms on the market in a sell-down to pay back its shareholders. CEO Craig McBeth said the company intends to find buyers this year for the farms, six of which supply Fonterra and one of which supplies Synlait. (Just Food, 7/19/24; Rural Exchange, 7/17/24)

Grande Cheese is renovating and expanding the Chilton, Wisconsin, cheese plant it purchased from Foremost Farms in 2023, quadrupling the size of the facility to 80,000 sq. ft. The Chilton plant will primarily make mozzarella cheese for the restaurant and foodservice industries. … Kansas City, Kansas-based Dairy Farmers of America (DFA) said it will close its dairy ingredient facility in Pollock, South Dakota. on Aug. 30 of this year. The cooperative said the decision was made “after a careful analysis of new demand and current supply dynamics and as part of a coordinated, cooperative-wide milk marketing and balancing optimization project.” … German dairy company Müller said it will build a new production facility at its Alois Müller dairy in Germany for its Landliebe jarred yogurt products. Production at the facility is scheduled to begin in the first half of 2026. … To meet growing demand for cottage cheese and Greek yogurt, New York-based dairy company Upstate Niagara Cooperative announced a $150-million expansion of its facility. The company plans to break ground on the expansion this fall. … Organic infant formula maker Bobbie opened a manufacturing facility in Ohio that will enable the company to produce canned formula and other powder products. The company also said it will move its headquarters from San Francisco to the same location. (Agweek, 7/19/24; Just Food, 7/22/24; Buffalo Business First, 7/30/24; Dairy Processing, 7/24/24)

The Australian is reporting that Dutch dairy giant FrieslandCampina, in partnership with Pacific Equity Partners (PEP), has made an offer for Fonterra Co-operative Group’s Australian operations that went up for sale earlier this year. FrieslandCampina said it does not comment on rumors. Other potential suitors include Lactalis and several investment firms. An exploratory study that will provide recommendations for the sale is reportedly set to begin soon. (Dairy News, 8/6/24)

In its first half of 2024, Danone reported net sales of €13,757 million (about US$15,038 million), down 2.9% from the same period last year — though net sales increased by 4.0% on a like-for-like basis. Recurring net income increased 2.6% from the first half of 2023. The H2 report notes that in China, Specialized Nutrition continued competitive sales momentum in both Infant Nutrition and Medical Nutrition, while sales in Europe ticked up led by the good performance of its YoPro, Actimel and Alpro brands. CEO Antoine de Saint-Affrique said the company continues to drive category growth by “further fueling our winning platforms High Protein, Medical Nutrition, Coffee Creations and Away-from-home.” Looking ahead, he said the company will continue “rebuilding our fundamentals, doubling down on Renew Danone, and have established solid foundations for the ‘next chapter’ of our consumer-centric and science-based strategy.” (Company reports)

To meet consumer demand, Chinese dairy brand Shiny Meadow launched a new version of its fresh milk product that it says contains a higher amount of protein and calcium. The creation of the product, called Shiny Meadow 4.0, was prompted by the results of consumer research conducted by the brand, which is owned by Inner Mongolia Mengniu Dairy Group Co. Ltd. That study found that when purchasing fresh milk products, the main concerns for Hong Kong consumers are calcium and protein content, nutritional balance, and easy nutrient absorption. (Food Navigator Asia, 8/7/24)

Amid falling birth rates and increasing competition, dairy companies that supply the Chinese market are reportedly shifting their focus from babies to the adult population. Last month, New Zealand-based A2 Milk Co. introduced new milk powder products in the country that are targeted to the “adult and aging population.” Other companies, including Danone, Abbott, Fonterra and Nestlé, offer similar products in the country, as do Chinese providers Yili and Feihe. As industry analysts predict demand for infant formula will decline in China in the coming years, dairy producers are looking to diversify into other sectors. Click here to read more about shifting priorities toward adults in the Chinese dairy market. (Financial Times, 8/12/24)

Second quarter 2024 results for Kentucky-based chain restaurant operator Yum Brands showed mixed results from the same period in 2023. Net sales rose 4% to $1.76 billion, an increase the company attributed to new restaurant openings, while net income dropped roughly 12% to $367 million. Yum’s worldwide same-store sales fell 1% in the quarter. KFC’s overall international same-store sales fell 3%, despite an increase in sales in China, the chain’s largest market. Pizza Hut saw international same-store sales decrease by 4%, and Taco Bell international same-store sales dipped by 1%. CFO Chris Turner said roughly 200 of Yum’s restaurants are temporarily closed across the Middle East, Malaysia and Indonesia, and that while some may reopen as soon as later this month, there is a chance that some might close permanently if conflict in the region worsens. (Company reports)

As part of efforts to meet the growing global demand for proteins, Fonterra partnered with U.S. startup Superbrewed Food to further develop Superbrewed’s functional biomass protein platform and explore additional applications. … Global investment firm L Catterton said it made a strategic investment in Chinese beverage company Viee, with the goal of solidifying the brand's profile and foothold in its home region of Sichuan and Chongqing, as well as expanding its presence in adjacent provinces and across the rest of the country. … The Abu Dhabi Investment Authority reportedly said it is considering investing at least $1.08 billion in Nestle SA’s Froneri, the ice cream joint venture that includes the Haagen-Dazs brand. (Company reports; Bloomberg, 7/23/24) 

Denmark-based Arla Foods Ingredients (AFI) said the company will discontinue its Early Life Nutrition (ELN) B2B business at its ARINCO site in Videbæk, Denmark, and turn that facility into a dedicated ingredients production site. Currently, the ARINCO site produces dairy ingredients and milk powder for AFI’s B2B ELN sales and Arla’s branded ELN business. The changeover will take place over the next 19 months. Arla plans to maintain and expand its branded ELN business in large part through a new partnership with French cooperative and ELN producer Sodiaal. Under the terms of the partnership, Arla and Sodiaal will collaborate to accelerate their China ELN businesses and Sodiaal will produce all of Arla’s future needs for ELN products in China as well as other Arla markets. (Company reports)

Synlait Milk and The a2 Milk Co. conditionally agreed to resolve all disputes related to their contract manufacturing agreement that were currently in arbitration. Synlait agreed to forgo its exclusivity arrangement to produce certain a2 brands effective Jan. 1, 2025, although the company expects it will continue to produce those products for at least the short term. Synlait will also continue to hold Chinese State Administration for Market Regulation (SAMR) registration attached to its Dunsandel, New Zealand, manufacturing plant for one of a2’s Chinse labeled products marketed in China and will keep producing that product unless and until a2 obtains its own Chinese SAMR registration. Synlait also agreed to make available to a2 an additional SAMR registration slot at Dunsandel for a potential new China label product. In addition, as part of the settlement, a2 will make a one-time payment to Synlait of NZ$24.75 million (about US$15 million). The settlement is conditional on Synlait completing an equity raise and a refinancing of its existing banking facilities. (Company reports)

In an effort to double its store count in India, the U.S. coffee chain Starbucks will experiment with store formats and beverage offerings throughout the country, including a suite of non-coffee beverages including milkshakes and Masala chai. The company, which runs its Indian stores under a joint venture with local conglomerate Tata Group, said it is looking to open more smaller outlets and coffee stands in outlying areas, as well as adding more non-coffee beverages and foods tailored specifically to the Indian palate. Starbucks currently operates 441 stores in India and aims to increase that number to 1,000 by 2028. (Bloomberg, 8/13/24)

Emmi Group revenues dropped 4.1% in the first half of 2024 compared to the same period of the previous year. The company attributed the decline to the sale of its Gläserne Molkerei dairy operation and negative currency effects as a result of the devaluation of the Chilean peso, the euro and the U.S. dollar against the Swiss franc. But the company also noted its recent acquisition of Verde Campo in Brazil has had a “slightly positive effect” on sales. The report noted “encouraging” results in strategic niches, including premium desserts in Italy and cheese exports from Switzerland in the specialty cheese sector—specifically the Kaltbach premium cheese specialties, which displayed strong growth in Germany and the Netherlands. Looking ahead, Emmi says it expects sales growth to be slightly higher in the second half of the year. (Company reports)

As part of efforts to grow its snacking business, Virginia-based Mars agreed to buy Chicago-based Kellanova (formerly known as the Kellogg Co.) for nearly $36 billion. The deal is expected to close in the first half of next year. (Company reports)

Nestlé CEO Mark Schneider is stepping down after eight years of leading the food and dairy multinational. The Nestlé board appointed Laurent Freixe, currently executive vice president and CEO Zone Latin America (LATAM), to replace him effective Sept. 1. (Company reports) 

Fonterra Co-operative Group announced an investment of about NZ$75 million (about US$47 million) to expand its Studholme, South Island, site to create a hub for high-value proteins. A company official said increasing its manufacturing capacity for functional proteins will “enable us to continue to strengthen our offerings with existing customers as well as attract new business.” The site expansion will begin next month, with the first product due to come off the line in 2026. (Company reports)

An official from Switzerland-based Nestlé disputed New Zealand’s claim to have the lowest global carbon footprint, Bruno Spire, Nestlé’s chief dairy buyer, said the country’s dairy industry must move faster to reduce its carbon emissions in order to meet the dairy buyer’s needs. While speaking at a New Zealand industry conference about its path to zero emissions, Spire said, “Without achieving the reductions on dairy, Nestlé will not be able to achieve its overall decarbonization objectives.” He cited New Zealand’s pasture-based farming model as a challenge to significantly reducing emissions, noting that North American and European dairy farmers had “more opportunities to significantly reduce their emissions.” But he also identified opportunities for New Zealand, including improving per-cow efficiency and productivity. (Farmers Weekly, 8/20/24)

After settling its partnership dispute with The a2 Milk Co. earlier this month , Synlait Milk has resolved its funding issues. The New Zealand-based dairy company said it will raise nearly NZ$218 million (about US$136 million) from its two main shareholders, a2 Milk and China’s Bright Dairy, to avoid insolvency. Under the proposed deal, the two companies will pay well over Synlait’s recent market price, with Bright Dairy upping its stake in the company to more than 65% and a2 Milk maintaining its roughly 20% stake. The capital raised from the deal will be used primarily for debt reduction. (Radio New Zealand, 8/21/24; Dairy News, 8/20/24)

Idaho Milk Products is building a new $200-million ice cream and powder blending facility at its Jerome, Idaho, campus. Construction on the 183,000 sq. ft. plant will commence in the next two months, with full commercial production starting by May 2026. The ice cream venture, a new product line for the company, will focus on premium indulgent and functional recipes in both bulk and novelty formats. The blending operation will support the ice cream business and create capabilities to provide custom formulations to both existing and new customers. Idaho milk said the project is a natural extension of its existing model and has the potential to create one of the world’s most sustainable ice cream businesses. (Company reports)

In what it called a “robust” first half, Arla Foods revenues declined “slightly” €6.6 billion (about US$7.4 billion), but net profit grew to €167 million (about US$187 million), a big jump compared to the first half of 2023. The Denmark-based dairy co-op said its strategic brands had a volume-driven revenue growth of 4% in the first half of 2024 compared to a decrease of 6% in the first half of 2023, with the growth spearheaded by its Lurpak, Puck and Arla brands. Looking ahead, Arla said it expects geopolitical tensions and economic uncertainty will lead to continued market volatility. And despite the potential for increased retail dairy prices (due to rising commodity prices), it predicts the positive trend in consumer purchasing from the first half of 2024 will persist, particularly in Europe, where inflationary pressures are easing and wages are rising. Arla said it anticipates conditions will translate into a continued upturn in demand for dairy. (Company reports; Just Food, 8/28/24)

In a move to enhance production capabilities and operational efficiency to strengthen its position in the Chinese market, German chemicals company Symrise expanded its F&B powder blending plant in Jinqiao, a district of Shanghai. The expansion includes the installation of a state-of-the-art blender in the seasoning plant to upgrade existing manufacturing capabilities. (Company reports)

To meet growing demand through its foodservice business, New Zealand-based dairy company Fonterra will invest NZ$150 million (about US$93 million) to build a new UHT cream plant at its Edendale site. A company official said the investment is part of the co-op’s strategy to grow value by expanding its foodservice business in Asia and increasing production capacity for high-value products. Fonterra said its foodservice business in Asia is growing demand by integrating dairy into traditional foods such as laksa and milk tea. And in Malaysia, the company is looking to build on its foundation, as half of New Zealand’s exports to the country are already dairy. Construction on the new plant, which is expected to create 70 more new jobs, is scheduled to start early next year. The first product is expected to come off the line in August 2026. (Company reports)

To support the nutritional needs of its country’s rapidly aging population, Japan’s Morinaga Milk Industry has launched a series of functional foods designed to promote healthy aging. The products, which the company highlighted at a breakfast at the Growth Asia Summit 2024 last month, include innovations in its yogurt, sachet powder, milk formula and fermented drinks brands. They are designed to provide nutrition and ingredients with functional claims ranging from reducing fatigue and improving intestinal environment to supporting immune and cognitive health. Click here to read about Morinaga Milk’s product innovations and watch a video with more details about healthy-aging products. (NutraIngredients-Asia.com, 8/28/24)

Irish dairy cooperative Tirlán said it will spin out €239 million (about US$264 million) worth of Glanbia shares to its members, pending approval of a proposed rule change that would give the co-op’s board greater flexibility in managing its financial investments. If the rule change is approved at an upcoming special general meeting, the spin-out is expected to occur in the second quarter of 2025.

In its FY 2024 annual results, Bega Cheese Ltd. reported net revenues climbed to AU$3.5 billion (about US$2.4 billion), up 4% from the previous year. Net income was $30.5 million (US$20.5 million), a strong turnaround from 2023’s net loss of $229.9 million (US$154.8 million). The Australian cheese company noted its branded international sales growth, reporting that its international sales rose by 11% over FY2023, driven by cheese and yogurt sales in Asia and the Middle East. The company also said its branded portfolio accounted for 86% of the company's revenues (excluding intercompany sales) in 2024. Looking ahead to 2025, Bega Cheese's management told investors to expect improvements in profitability and leverage because "subject to normal trading conditions," they expect continued growth in the branded segment and improved performance in its bulk segment as conditions in the dairy industry improve. (Company reports)

In its 2024 half-year results, China Mengniu Dairy Co. reported a decrease in revenues of 12.6%, a drop the company blamed on a demand-supply imbalance and “lower-than-expected consumer demand.” Despite those challenges, the company’s gross profit margin increased by 1.9 percentage points year-on-year -- to 40.3%. Looking ahead, the company said it expects China’s macroeconomic environment and consumer confidence to continue recovering, and that premium and diversified dairy offerings should remain highly favored as consumers increasingly prioritize the nutritional value and health benefits of dairy products due to growing awareness. According to the report, this trend is expected to create new opportunities for consumption growth and structural upgrades, and that the group will adhere to the developmental direction of “value creation, consistent focus on R&D and innovation, brand building, digitization, accelerated channel optimization and new business development, with a strong emphasis on driving high-quality growth through accelerating the refinement of product mix and facilitating a balanced business expansion.” (Company reports)

Following a strategic review of its North Island assets, New Zealand-based dairy processor Synlait Milk said it will refocus operations in its manufacturing facility in Pōkeno exclusively on producing advanced nutrition products that do not require raw milk. The company said the review, which was part of Synlait’s business recovery plan, found that switching between processing dairy and non-dairy hybrid nutrition products hinders operational efficiency in the Pōkeno plant and that transportation and other manufacturing costs make it financially unviable for Synlait to keep processing milk there. Synlait said its Dunsandel plant will remain the hub of the business for dairy operations. (Company reports)

Four months after the Algerian Ministry of Agriculture and Rural Development and Qatar-based dairy company Baladna agreed to build an integrated dairy to produce milk powder in Algeria, the first phase of the project began with the drilling of exploratory wells throughout the allocated land needed to feed the dairy herd. The drilling work of the $3.5-billion venture aims to study the nature of the groundwater to ensure the optimal design of the wells. The farm will reportedly be the largest integrated vertical farm in the world, with more than 270,000 head of cows producing about 1.7 billion liters of milk annually. The three-phased project includes an arable farming operation first, then four dairy farms, followed by a state-of-the-art factory to produce powdered milk. Baladna said earlier this year that the project is expected to meet 50% of Algeria’s need for powdered milk. (USDEC MENA Office; Zawya, 9/4/24)

Meiji Holdings is reorganizing its yogurt production sites in Japan to cut costs and improve efficiency. The company will close three factories in the Miyagi, Saitama and Kanagawa prefectures and build a new ¥40-million (about US$282 million) plant in Kanagawa. The Miyagi plant will close in late 2025; the Saitama and Kanagawa facilities will shut down in spring and summer 2027. Meiji expects to open the new facility in March 2027. (Jiji Press, 9/7/24)

General Mills is selling its North American yogurt business to French dairy processors Lactalis and Sodiaal in cash deals valued in total at $2.1 billion. Lactalis is acquiring the U.S. business, including manufacturing facilities in Tennessee and Michigan. Sodiaal is acquiring the Canadian operations, including a plant in Quebec. General Mills will provide further details in its upcoming first-quarter results announcement. … Australia’s Beston Global Food Co. said that Japan’s Megmilk Snow Brand has made an offer for its cheese and lactoferrin production business in Jervois, South Australia. … New Jersey-based Tropical Cheese Industries is reportedly working with investment bank Rothschild and Co. to explore a sale of the Hispanic dairy products maker. Sources say a deal for the family-owned company could be worth more than $500 million. … AS Equity Partners signed a definitive agreement with Hochdorf Holding Ltd. to acquire Switzerland-based milk processor Hochdorf Swiss Nutrition Ltd. Shareholders will vote on approval of the deal next week. (Wall Street Journal, 9/12/24; Just Food, 9/12/24; Reuters, 9/3/24; Company reports)

New Zealand’s Tatua Co-operative Dairy is reportedly undertaking an NZ$85 million project (about US$52 million) to significantly expand cream products production at its North Island headquarters. … Chinese infant formula maker Feihe and Dutch dairy giant FrieslandCampina signed the cooperation agreement in Beijing. The two companies will work together to develop and market “nutrition solutions” with a focus on brain health for consumers across all age groups. … It took about three months for Yum China to open the first 100 Pizza Hut WOW outlets in China. Pizza Hut WOW is an altered version of a standard Pizza Hut location focusing on price and efficiency. Most of the menu items at WOW stores align with original Pizza Hut stores but are tailored for single and more price-sensitive consumers. Yum China plans to expand the number of WOW outlets to 200 by the end of this year. … Canadian dairy company Saputo announced several leadership appointments in conjunction with Carl Colizza’s taking over the role of president and CEO on Aug. 9. The appointments, which are effective immediately, include Frank Guido as COO, Leanne Cutts to the newly created position of chief commercial officer, Dominick Bombino as president and COO, Dairy Division (USA), and Steve Douglas as president and COO, Dairy Division (UK). … After failing to find a buyer for its King Island Dairy facility, Saputo Dairy Australia said it will close the plant and retire the brand in 2025. The plant, which produces hand-made specialty cheeses, is nearly 100 years old. … In a move the company said was a “matter of efficiency,” France-based Danone transferred the production of its Tetra Pak-packaged YoPro drinkable high-protein yogurts to its plant in Bucharest, Romania. Those drinks are being manufactured for the central and eastern European markets, while the rest of the YoPro product line is still being made at facilities in Poland and Spain. (USDEC China office; Company reports; New Zealand Herald, 9/9/24; Just Food, 9/9/24)

To increase capacity and improve operational and energy efficiency in its production plant in Seinäjoki, Finland-based Valio is investing €70 million (about US$78 million) in modernization efforts. Valio, which exports more than 80% of its milk powders, provides specialty milk powders primarily for international industrial customers for use in products like confections, baked goods and baby food. In addition to the construction of a new regional laboratory facility at the site, the company said enhancements will include a new washing center for the powder plant, modernization of the powder plant’s drying tower and a process overhaul. The renovation of the drying process at the plant will create additional production capacity for specialty milk powder production in Seinäjoki and improve energy efficiency in the powder production process. The improvements are expected to be complete in 2026. (Company reports)

French dairy giant Lactalis said it will invest €16.5 million (about US$18.4 million) to expand its operations in Rio Grande do Sul, the southernmost state of Brazil. The investment, which will provide improvements to five factories throughout 2025, will include new production lines (a processed cheese line in Santa Rosa, a whey protein line in Teutônia, and a mozzarella line in Três de Maio) and increasing the capacity for energy generation in Ijuí to support cheese production. (Dairy Global, 9/11/24)

New Zealand’s FoodWaikato (owned by New Image Group) is spending NZ$7 million (about US$4.3 million) to upgrade its Ruakura, North Island, spray dryer. The project is part of an effort to expand colostrum collection and processing capabilities. The company is also spending NZ$4.5 million (about US$2.8 million) on R&D aimed at upgrading its nutritional claims. New Image exports its product to 26 countries, turning colostrum into a powdered drink for both adults and children to promote gut health. (Farmers Weekly, 9/18/24)

Nestlé said it will sell its Cremora business in South Africa to France-based dairy giant Lactalis. As part of the deal, Lactalis will acquire two of Nestlé’s South African plants that currently manufacture the creamer brand. Nestlé’s third plant that produces Cremora will stop manufacturing the brand once the transaction is complete. … On the heels of its recent acquisition of UK food delivery business Müller’s Milk & More, UK dairy company Freshways Group acquired Wales-based Totally Welsh Dairy. A Freshways official said the deal will allow the company to “better serve our customers with an expanded range of products while supporting local Welsh farmers.” (FoodBev Media, 9/13/24; Just Food, 9/13/24)

Switzerland-based Nestlé committed to building its first food manufacturing plant in Saudi Arabia, with the signing of an agreement with the Saudi Authority for Industrial Cities and Technology Zones (Modon) for a 1.3-million-sq.-ft. plot in Jeddah's Third Industrial City. Nestlé did not specify exactly what the facility would make, other than saying it would manufacture “children’s food.” The plant will produce for both the Saudi market and also export markets in the Middle East and North Africa. … Missouri-based Hiland Dairy Foods announced the expansion of its Tyler, Texas, operations with the addition of 90,000 square feet to its existing facility. The expansion, which is expected to be complete in early 2026, will include state-of-the-art processing, filling, casing, palletizing, load-out, and storage areas, as well as a new lab. … New Zealand dairy co-op Fonterra said it will invest around NZ$150 million (about US$167 million) for a new cool store at its Whareroa site in Taranaki. The building will store about 26,000 MT of cheese. Construction is slated to begin in October and take about three years to complete. … Nigerian dignitaries joined Danone officials at the launch of a new Fan Milk yogurt production line in Ibadan, Oyo State. Government officials said the new production line will improve the quality and availability of dairy products for the local population, while generating employment, invigorating local economies and contributing to Nigeria’s GDP. … In response to evolving consumer preferences and growing demand in the Nigerian market, CWAY Foods and Beverages unveiled three new drink products: Café Coffee Milk, Fuji Probiotic, and Assam Milk Tea. At the triple product launch, Cway executives explained how the company’s distribution strategy will make these products accessible to Nigerians in both urban and remote areas through its advanced supply chain management system and partnerships with key distributors. (USDEC Middle East/North Africa office; Company reports; The Sun, 9/17/24; Brand Communicator, 9/17/24) 

Australian dairy company Jatcorp said it plans to concentrate on building its own nutrition brands and shift efforts away from product distribution and OEM for other companies. The company says this shift will start with an increased focus on its Neurio and Moroka in-house brands, both of which contain milk powder formulated with lactoferrin as the key ingredient and target audiences ranging from young children to seniors. Subsequent plans to grow its branded business include focusing on fast-growing health supplement categories, expanding into new markets, and potentially acquiring successful Australian health and nutrition brands. (NutraIngredients-Asia.com, 9/19/24)

Danone and Japan-based food manufacturer Ajinomoto Group announced a partnership aimed at reducing greenhouse gas (GHG) emissions from the dairy industry. The companies said they would team up to use an AjiPro-L, an Ajinomoto supplement used in cow feed, at farms from which Danone collects milk. Figures cited by the companies say AjiPro-L decreases nitrous oxide emissions from manure by approximately 25%, and if it’s combined with a methane reduction additive, it can amplify the effect of the methane reduction additive by approximately 30%. Both companies have signed a memorandum of understanding and plan to introduce the supplement to Danone’s farmers in Egypt and Morocco, as well as contracted farmers in Spain, Brazil and the U.S. (Company reports)

France-based Danone made a non-binding proposal to acquire Illinois-based Lifeway Foods, a producer of kefir and probiotic products, for approximately $283 million. Danone currently holds a 23.4% stake in Lifeway, which is currently facing significant challenges, including a public family dispute involving its leadership. (FoodBev Media, 9/25/24)

Chicago-based organic kefir manufacturer Pure Culture Organics said it entered an agreement to acquire the former Saputo dairy plant in Belmont, Wisconsin. The company said it plans to use the facility to make both dairy- and plant-based kefirs, with operations expected to begin in 2025. (Food Processing, 9/18/24)

New Zealand-based Fonterra Co-operative Group Ltd. made several announcements last week related to its performance and future. While sharing its FY 2024 full year results, company officials said they are confident that demand from its Chinese market is improving, despite the country’s focus on increasing its domestic milk supply. Chair Peter McBride highlighted the downward pressure on China’s milk supply, compounded by aging inventories—particularly in whole milk powder. And CEO Miles Hurrell said Fonterra’s foodservice business in China is growing, despite the country’s broader economic challenges. He also attributed the expected demand comeback in part to the end of a surplus of domestically produced milk there. Fonterra also released a revised strategy that focuses on its high-performing Ingredients and Foodservice businesses, following a strategic review that confirmed the co-op’s strengths as a B2B dairy nutrition provider. To create the most value and room for future growth, the new approach includes six “strategic choices,” including working alongside farmers to enable on-farm profitability and productivity, expanding its Foodservice business in China and other key markets to grow earnings, and investing in a manufacturing and supply chain network that allows flexibility to allocate milk to the highest returning product and sales channel. Other key points of its results reporting included the announcement of a 55 cent per share dividend and an increase of its forecast Farmgate Milk Price for the 2024-2025 season by 50 cents to a new midpoint range of NZ$9 per kgMS. (Company reports; Farmers Weekly, 9/27/24)

South Australian dairy company Beston Global Food Co. entered voluntary administration following an unsuccessful attempt to sell the company’s cheese and lactoferrin production facility to Japan-based Megmilk Snow Brands. Beston, which is known for its cream cheese and hard cheeses such as gruyere and parmesan, cited several factors for its financial difficulties, including post-pandemic debt and high operating costs caused by high energy and dairy prices. Financial services company KPMG began the voluntary administration process and has taken control of the business's assets, trading and day-to-day operations. (ABC Rural, 9/23/24)

After pulling out of India’s dairy market six years ago, French dairy company Danone revealed plans for further investment in its nutrition products operations in the country. CEO Antoine de Saint-Affrique said Indian consumers will soon see more Danone products on shelves, and that it plans to invest €20 million (about US$22 million) over the next four years to expand its nutrition facility in Punjab. Danone will also launch a three-year dairy farmer program designed to “equip more than 5,000 smallholder dairy farmers in Punjab with sustainable farming methods and knowledge of resilient farming models.” (Just Food, 9/30/24)

After two years of construction, operations began at Junlebao’s new dairy farm in Anhui Province. The Chinese dairy processor’s newest farm is capable of holding 10,000 dairy cows with estimated production of around 80,000 MT per year, much of which will reportedly be purchased by the local government to provide milk for the primary and secondary school students in the region. … Yum China announced the opening of a new supply chain center in Shanghai that includes room-temperature storage, low-temperature cold chain logistics and office space. A company official said Yum China needed to increase its supply chain capabilities to keep up with its plans to expand to 20,000 outlets by 2026. Currently, its Pizza Hut brand is trialing the delivery of pizza by drones in Shenzhen in cooperation with delivery company Meituan. … Canadian investment group CDPQ increased its stake in Canadian dairy company Saputo with an additional investment of CAN$378 (about US$280 million). CDPQ's stake in the company now totals approximately 4.5%. (USDEC China Office; Company reports) 

California-based Hilmar Cheese announced that CEO David Ahlem will step down from his role early next year. Ahlem has been with Hilmar for a total of 21 years, including almost 10 years as its CEO. A statement from Hilmar said he will continue to contribute to the company as an advisor to the board of directors. The board began a search process for a new CEO two months ago and is considering both internal and external candidates, with the goal of having a successor in place by early next year. (Company reports)

Danone is spending 2 billion Egyptian pounds (about US$41 million) to upgrade and expand its Al-Obour factory in Egypt with an eye toward increasing exports from the facility. Danone currently ships about 5% of the plant’s output to five North African and Middle Eastern markets. The new investments will help the company double that percentage and expand further into Africa and Saudi Arabia, Danone said. (Zawya Projects, 10/7/24)

Saudi Arabian dairy and food processor Almarai, through its subsidiary, Teeba Investment for Developed Food Processing, is paying 263 million Saudi riyals (about US$70 million) for Jordanian dairy and cheese company Hammoudeh Food Industries. … Illinois dairy cooperative Prairie Farms Dairy acquired the Orrville, Ohio, manufacturing facilities of dairy company SmithFoods. The change is effective immediately and both companies said they are committed to a seamless integrations with no disruptions in day-to-day operations. … Australia’s Nature One Dairy, food manufacturer SPC Global, and The Original Juice Co. announced a merger that will create a new Australian food and beverage company that’s estimated to generate more than A$400 million (about US$275 million) in revenue by 2025. The merger for the new business, which has yet to be named, is expected to be finalized next month, pending shareholder approval. Nature One makes and markets premium infant formula, nutritional formula and milk powder products for customers in Australia, China and other Asia-Pacific markets. … Switzerland-based Emmi Group completed its €900 million (about US$974 million) acquisition of French pastry manufacturer Mademoiselle Desserts Group. (Company reports; Just Food, 10/9/24)

Miami-based restaurant chain Subway announced it has signed more than 20 master franchise agreements over the last three years that represent commitments for more than 10,000 additional international units. The deals will reportedly launch Subway shops in Paraguay and Mongolia for the first time and expand its presence in France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador and Guatemala. (Restaurant Business, 10/1/24) 

Denmark-based Arla Foods has made a non-binding offer to acquire a majority stake in Egyptian dairy, food and beverage company the Arabian Food Industries Co.—commonly known as Domty. The offer values Domty, which employs roughly 4,000 people and has two production sites in Egypt, at approximately 8.9 billion EGP (about US$183 million). If the acquisition proceeds, the current owners—the El Damaty family—are expected to retain a minority stake and Arla is expected to delist Domty from the Egyptian stock exchange. An Arla official said Domty is well aligned with Arla’s strategy in Egypt’s “substantial” dairy market. (Company reports)

Arla Foods also continues to make efforts and investments toward growth in Nigeria. The Danish company recently hosted a variety of dairy industry stakeholders at its Arla Farm in Damau, Kaduna. The inaugural Arla-Damau Open Day brought together government officials, local dairy farmers, agricultural stakeholders and veterinary students to experience Arla’s milk production facilities and sustainable production practices, as well as meet about 20 local and international partner companies who hosted exhibit stands showcasing their dairy farm products and services during the event. In addition, Arla continued its expansion in the Nigerian market with the launch of two new dairy products under its Dano brand. At the launch of Dano Cool Cow and Dano Full Cream Evaporated Milk, a company spokesperson emphasized the importance of dairy in Nigerian households and said Arla is committed to meeting the nutritional needs of families with quality dairy products. (USDEC Middle East/North Africa office; Dairy Business Africa, 10/8/24)

Japanese Italian restaurant chain Saizeriya is expanding in China backed by strong sales growth. Saizeriya reported that its FY2024 net profit jumped 58% versus the previous year to US$54 million—a record high. The company credited Chinese operations for much of the growth, and said it will further develop that market through a new $30-million production facility from subsidiary Guangzhou Saizeriya. The new Guangzhou plant will make pizza, pasta and sauce and should be operational in January 2026. Saizeriya’s CEO said the facility will enable the company to increase the number of its outlets in China from 500 to 1,000. (USDEC China Office)

Roughly two years after India’s Britannia Industries and French cheesemaker Bel Group established a joint venture to meet the growing demand for cheese among Indian consumers, the resulting Britannia Bel Foods has opened a new INR 220 crore (about US$26 million) cheese factory in Maharashtra, India. The factory will produce roughly 10,000 tons of Britannia Laughing Cow cheese products per year and is fully integrated with Britannia’s milk procurement program, which sources more than 400 MT of cow’s milk daily from over 3,000 farmers in the region. (Company reports)

Australia’s Pure Dairy announced that its new manufacturing and cheese processing facility in Dandenong South is nearing completion and on track to begin production in April 2025. The plant is expected to produce plant-based and traditional dairy products including mozzarella, cheddar and specialty cheeses that will target both domestic and international markets. … Nestlé reorganized its global divisions. The company merged its Zone North America and Zone Latin America into a single Zone Americas under the leadership of Steve Presley. In addition, it rolled its Zone Greater China Region into Zone Asia, Oceania and Africa under the leadership of Remy Ejel. (Company reports; FoodBev.com, 10/15/24) 

Saudi Arabian food and beverage company Almarai opened two new cheese production lines at its Beyti subsidiary in Egypt. A company statement said the investment of nearly EGP 1 billion (about US$20 million) aligns with the company’s strategic vision to expand its regional footprint and underscores Almarai’s commitment to meet rising demand for cheese products and supporting the Egyptian economy. Almarai’s CEO also said the company is “committed to delivering high-quality products that meet the needs of consumers in Egypt and abroad.” The company said it aims to generate US$50 million in exports through its Beyti subsidiary to fuel its global growth. (USDEC Middle East/Egypt Office; Company reports)

UAE-based dessert maker Pure Ice Cream announced a deal to build an AED80 million (about $22 million) factory at Dubai Industrial City. The company, which manufactures brands such as Kwality and Hershey’s ice cream, said the facility will be built within the dedicated food and beverage zone of Dubai Industrial City and is expected to be among the UAE’s largest ice cream factories upon completion in 2026. It will triple Pure’s annual capacity to 30 million liters, supporting ambitions to grow its regional and international footprint and fortify its presence in the UAE’s food and beverage manufacturing sector. The new facility will support Pure Ice Cream’s network in key markets across the GCC, Africa, Southeast Asia and the United States. (USDEC Middle East/North Africa office; Arabian Business, 10/21/24)

Synlait Milk CEO Grant Watson, who has held the title since January 2022, resigned effective immediately. The New Zealand company’s board is planning a global search to fill the position. In the meantime, Tim Carter, current CEO of Synlait’s Dairyworks business, has been appointed acting CEO. … In its first investment outside of America, Ohio-based Great Lakes Cheese announced a strategic partnership with Australia’s Pure Dairy. A Great Lakes Cheese official said the partnership will allow the company to support Pure Dairy’s continuing global expansion efforts. … Chick-fil-A plans to invest $75 million over the next decade to support its expansion to Singapore. The company expects to open its first outlet in Singapore by late 2025. ... In a move to meet growing national demand for its products, Arizona-based dairy company Shamrock Farms said it is investing $59 million to expand its milk manufacturing facility in Virginia. The project, which is expected to be complete in 2028, includes adding a new production filling line and cold-storage space at the site. (Company report; Dairy News Today, 10/22/24; Just Food, 10/17/24; Restaurant Dive, 10/17/24)

Minneapolis-based nutritional ingredients manufacturer Milk Specialties Global announced a corporate rebranding that will transition its name to Actus Nutrition. The company said the move aligns its name and marketing efforts with the market opportunities ahead for the business and its global customer base in the health, well-being and nutritional ingredients sectors. Actus Nutrition supplies protein products, including whey proteins, milk proteins, casein and caseinates and other value-added ingredients to many of the world’s leading providers of protein and nutritional supplements, including 13 out of the top 20 sports nutrition brands. The new brand is being revealed at SupplySide West in Las Vegas this week. (Company reports)

Oddlygood, the Finnish plant-based food and beverage company founded by Valio, announced the acquisition of British plant-based company Rude Health for an undisclosed sum. A company statement said the UK is a key territory for Oddlygood and its acquisition of Rude Health will further diversify the business beyond the Nordics and drive both UK and European growth. (Company reports)

Lactalis USA is spending $55 million to add a new feta production line to its Tulare, California, facility. … Nestlé says it plans to spend $21 million to convert cosmetic production lines in China to produce health and wellness foods, including protein bars, protein powders and “probiotics.” … Denmark-based Arla Foods Ingredients unveiled a new upcycling concept that will repurpose acid whey into high-protein dairy products. The company created three ambient dairy product concepts that feature acid whey as a core component, each of which is suitable for processing on standard dairy production lines. … In an effort to boost the “efficiency and profitability” of its production, Finnish dairy company Valio said it will close its factory in Vantaa. The company said it will “relocate” operations at the plant, which produces processed cheeses for both domestic consumption and export, to a cheese manufacturing plant in Joensuu. Valio is also relocating its warehouse in Helsinki’s Pitäjänmäki district as a result of zoning changes that designate the area as residential and prohibit future industrial activity. (USDEC China office; Company reports) 

Ireland-based Glanbia announced a change in its operating model that will separate its Glanbia Nutritionals business into two new segments: Health & Nutrition and Dairy Nutrition. The Health & Nutrition segment will incorporate Glanbia’s premix solutions and flavors platforms. The Dairy Nutrition segment will focus on cheese and dairy ingredients and will comprise the portfolios of protein solutions (which are currently in the Nutritional Solutions segment) and U.S. Cheese. It will also become the commercial partner for the Group’s joint venture MWC-Southwest Holdings LLC. Glanbia CEO Hugh McGuire said the new structure is designed to streamline the business further, sharpen its focus on end-use markets, and position the company for the next phase of growth. Glanbia expects to implement the new operating model during FY 2025, with more details to be provided in early 2025. (Company reports)

U.S. kefir maker Lifeway Foods rejected an unsolicited offer by Danone to buy the company. The Lifeway board “determined that Danone's opportunistic proposal substantially undervalues Lifeway,” the company said in a statement. … Chicago-based dairy and dairy-free flavor manufacturer Edlong Corp. announced the acquisition of Brisan Group, a Chicago-based market research and product consultancy firm. (Company reports)

New Zealand-based Fonterra Co-operative Group confirmed it will sell its consumer business, which includes major brands like Anchor and Mainland. CEO Miles Hurrell said the revised strategy is “in the best interests of the Co-op" and will enable Fonterra to prioritize its Ingredients and Foodservice businesses and create a more focused and higher-performing entity. He said Fonterra has yet to decide whether the business will be sold through a direct trade sale, or through an initial public offering that would put the assets into a separate company. Hurrell said the businesses on the block have received “meaningful buyer interest,” although he did not name companies. Fonterra also increased the midpoint of its milk price forecast for the 2024/25 season to NZ$9.50 per kg/MS from NZ$9.00. Hurrell attributed the improved outlook to strong demand for reference commodity products, which has helped to push prices up in recent Global Dairy Trade auctions. He noted the demand “has been seen out of China, where there are indications that domestic production is below expectations, and also in Africa, the Middle East and Southeast Asia.” (Company reports)

In a move to focus on its taste and nutrition solutions, Kerry Group plc announced it has agreed to sell Kerry Dairy Ireland to Kerry Co-Operative Creameries Ltd. The divestment is estimated to be worth €500 million (about US$531 million). Under the terms of the agreement, Kerry Group will initially retain a 30% stake in the dairy division, which includes Kerry’s consumer dairy and dairy ingredients businesses, with plans for the coop to take full ownership in phases until the entire acquisition is complete in 2035. The proposed transaction will be put to a shareholder vote next month. (Company reports)

In an effort to create a stronger entity within the Irish dairy industry, the boards of Arrabawn Co-operative Society Ltd. and Tipperary Co-operative Creamery Ltd. unanimously confirmed the joint decision to merge the two operations. The new co-op, which will be known as Arrabawn Tipperary Co-operative Society and will be a dairy and agri-trading co-operative, is subject to regulatory approval by entities, including Ireland’s Competition and Consumer Protection Commission. (Agriland, 11/7/24)

The UK’s Competition and Markets Authority approved Denmark-based Arla Foods Ingredients’ acquisition of the whey nutrition business of U.K.-based dairy company Volac, which specializes in whey ingredients for sports nutrition. … Campbell Soup Co. is selling its Noosa yogurt business to Ohio-based Lakeview Farms, a manufacturer of fresh dips, desserts and specialty products. (Company reports)

Illinois-based kefir and probiotic products manufacturer Lifeway Foods announced an expanded distribution agreement in the United Arab Emirates market. The company is expected to begin exporting its 32-ounce Lifeway Kefir, 8-ounce Lactose-Free Lifeway Kefir, ProBugs and farmer cheese before the end of this year. The products will be available in supermarkets and hypermarkets in Dubai and across the Emirates. … China’s Yoraour Biological Technology Corp. opened its new $17-million nutritional products plant in Yinchuan, China. The facility will manufacture freeze-dried bovine colostrum and other health products in powder and solid forms. … In an effort to grow market share in China, Fonterra is expanding its Foodservice offerings in the country with the launch of Anchor Easy Bakery Cream, a mid-tier UHT cream for bakeries. The mid-tier market is the fastest growing segment of China’s UHT cream market, the company says. … Outback Steakhouse parent company Bloomin’ Brands announced it is selling majority ownership in its Brazilian business to Brazil-based franchise operator Vinci Partners for $243 million. Under the terms of the deal, which Bloomin’ Brands said will help the steakhouse focus on domestic operations, Vinci will assume 67% ownership of the country’s 200-plus restaurants, while Florida-based Bloomin’ Brands will retain 33%. … Pennsylvania-based dessert maker Taylor Chip Cookie Co. announced it will build a new $12.5 million, 20,000-square-foot facility designed to expand its cookie manufacturing operation and add ice cream production capabilities. The company plans to add packaged cookies and ice cream pints to its current direct-to-consumer business. (USDEC Middle East/North Africa office; USDEC China office; Company reports; Restaurant Business, 11/8/24; Dairy Processing, 11/5/24)

As part of efforts to optimize its production network in the Netherlands, Dutch dairy cooperative FrieslandCampina announced plans to concentrate all activities at its Leeuwarden operation in the southern part of the site, with the northern part to eventually close. The group said this process will happen gradually, with a goal of stopping the production of sweetened condensed milk by June of 2026. That function will then be outsourced to German co-op Hochwald Foods, as part of a strategic partnership. In return, FrieslandCampina will produce evaporated milk in Leeuwarden for Hochwald. FrieslandCampina said it also plans to relocate the production of natural cheese from Born to Workum, with cheese production in Born to close by May of next year. (Company reports)

Finland-based dairy co-operative Valio said it believes that lactose-free milk innovation with an identical taste profile to regular dairy is the key to gaining more prominent recognition within the Asian dairy market. At September’s Vitafoods Asia 2024 event in Bangkok, Valio Marketing Manager Meri Harmala told FoodNavigator-Asia that demand for dairy is rapidly increasing in Asia despite a significant number of lactose-intolerant consumers, but there is room for improvement in the taste profile of lactose-free dairy products. Click here to read more of Harmala’s insights on improving awareness of lactose-free milk in the region and overcoming challenges to advancing dairy in Asia. (Dairy Reporter, 11/14/24)

Earlier this month, Illinois-based kefir and probiotic products manufacturer Lifeway Foods rejected a buyout offer of $25 a share from dairy giant Danone. This week, Lifeway declined a revised offer to acquire its remaining shares for $27 a share, saying the second proposal still undervalues the company. (Company reports)

Min’ning Wangchengxiang Dairy Co. is building a $30-million dairy processing plant in Ningxia. Once completed, the plant will produce milk powder, sterilized milk, milk-based beverages and fermented milk. The company was founded by China National Chemical Engineering Group, the University of Chinese Academy of Science and Chengde BestMilk Co. … Pizza Hut is lowering prices on 30 menu items and reworking its product offerings in China to appeal to more selective, cost-conscious customers. The company will reportedly adjust its menu quarterly to work in more products tailored to local taste, with new items rolling out such as chicken pizza with salted duck egg yolk and baked mussels with cheese and white wine. There currently are about 3,600 Pizza Hut locations in China, but the company is in growth mode, opening 438 new stores in the third quarter of 2024 alone. (USDEC China office)

Irish trade development group Bord Bia was awarded a €3.2 million (about US$3.4 million) contract to promote dairy in Asia for three years on behalf of the EU. The goal of the ‘European Dairy – Where Nature Meets Science’ campaign is to position the EU as a leader in the supply of value-add dairy ingredients to the specialized nutrition manufacturing sector across China, Singapore and Vietnam. Ireland will be promoting the campaign on behalf of the EU 27. Bord Bia CEO Jim O’Toole said that EU co-funded campaigns are a vital means of putting Ireland on the global stage as a food producer, and that the initiative will focus on building new relationships between Irish exporters and local manufacturers of higher-value consumer products, as well as the importers and distributors in China, Singapore and Vietnam that serve them. The campaign will launch in June 2025. (Agriland, 11/19/24)

New Zealand-based a2 Milk Co. (a2MC) said at its annual meeting this week that top priorities include securing more Chinese label registrations and developing its own nutritional manufacturing capability. Company chair Pip Greenwood said a2MC is exploring opportunities to achieve this through investment in its own supply chain and through acquisitions and commercial partnerships, and noted that the 2024 financial year was a milestone year for its China-label product, following re-registration in June 2023 of its upgraded China-label infant milk formula. (Rural News, 11/22/24)

Swiss food giant Nestlé said the decision to close its Wyeth Nutrition infant formula facility and R&D center in County Limerick, Ireland, cost €472 million (about US$496 million). When the company announced roughly a year ago that it would shutter the facility, which produces products exclusively for export to China and Asia, it said that external trends including China’s declining birth rate had impacted demand in the country. A Wyeth Nutritionals Ireland financial statement shows the company incurred the exceptional cost “due to the announcement of the closure. This includes both restructuring and impairment costs.” The closure will occur in phases, with R&D activities set to end in March 2025 and manufacturing continuing until the full closure in March 2026. (Agriland, 11/27/24)

Following the decision of its parent company to spin off its ice cream business, Unilever’s India unit, Hindustan Unilever Ltd., said it will demerge and independently list its ice cream division. The business includes brands such as Kwality Wall’s, Cornetto and Magnum. … Private equity group Blackstone said it will acquire New Jersey-based sandwich chain Jersey Mike’s Subs in a deal reportedly valued at $8 billion. Blackstone said Jersey Mike’s Founder and CEO Peter Cancro will maintain a “significant equity stake” in the company and will continue to lead the business. (FoodBev Media, 11/27/24; Restaurant Business, 11/19/24)

After Bloomberg reported Seattle-based Starbucks was exploring options for its Chinese operations (including determining interest from potential investors), CEO Brian Niccol said the company is working to find the best path to growth and will “continue to explore strategic partnerships that could help us grow in the long term.” … In a move toward “developing sustainable supply chains for food production,” Brazil-based meat company JBS signed a Memorandum of Understanding with the government of Nigeria saying it will invest $2.5 billion in the country in the next five years. The plan includes the construction of six new factories—three for poultry, two for beef and one for pork—to reduce imports and improve food security. … After “carefully assessing” long-term changes in milk production and demand, Dairy Farmers of America said it will cease manufacturing operations at its Goshen, Indiana, plant next month. Milk currently processed at the plant, which manufactures condensed milk for B2B customers, will be redirected to nearby facilities. … To support the development of Mongolia’s agribusiness sector, the European Bank for Reconstruction and Development (EBRD) is granting a US$20 million loan to APU Dairy—the country’s second largest producer of dairy products. The loan will help APU finance the expansion of its processing plant, the acquisition of new processing and packaging lines, and the upgrading and expansion of its milk sourcing arrangements, as well as helping to meet its working capital needs. … Sydney-based biotech company All G gained regulatory approval to sell its precision-fermented recombinant (made from microbes, not cows) lactoferrin protein in China. The company aims to launch its first products in the market in the second half of 2025. (EBDR; Food & Drink Business, 11/27/24; Reuters, 11/21/24; Just Food, 11/21/24) 

Belgian dairy businesses Vache Bleue Group and Flanders Food Production (FFP) have merged into a new entity known as European Dairy Co. The new company will have a combined annual turnover of around €500 million (about US$526 million). Vache Bleue distributes its Vache Bleue, Dilea Zero Lactose and Valmartin brands in its home market and France while also producing cheese in Germany and supplying products on a private-label basis. FFP cuts, grates and portions cheese and has “extensive expertise” in private-label products. Company officials expect the deal will allow the companies to strengthen their market positions and said that further expansion plans are “on the agenda” to increase production capacity of the various sites. European Dairy Co. will operate from the parties’ existing sites in Belgium, France and Germany and retain its current employees. (Just Food, 12/10/24)

Japanese probiotic beverage giant Yakult Honsha is closing its Shanghai manufacturing plant and dissolving its Shanghai Yakult division, a wholly owned subsidiary of Yakult China. Sales operations in the region will transfer to a new Shanghai branch of Yakult China, while production will shift to plants in Wuxi and Tianjin. Yakult Honsha cited the need to improve competitiveness and increase management efficiency as the reasons for the move. (Company reports)

In a move to maximize market potential in China, New Zealand-based a2 Milk Co. (a2MC) revealed plans to launch China-label versions of its existing fortified adult milk powder products designed to support the immune system and joint, bone and muscle health. At the company’s annual meeting last month, CEO David Bortolussi said a2MC’s English-label fortified milk powder products were performing well in China and that the company hopes to achieve further growth by introducing Chinese labels of those products into the country’s “thriving but highly competitive” senior nutrition market. He said a2MC is planning to launch new products targeting the seniors market next year. (Food Navigator Aisa, 12/3/24)

One way Nestle raises its profile with consumers and authorities in developing markets around the world is through involvement in social programs. As part of its global Nestlé Needs YOUth program, the Swiss food giant recently awarded 20 young Nigerians who completed their Technical Training program in Agbara with highly recognized City & Guilds certifications. The Nestlé Technical Training Program in Nigeria is a collaboration with the Swiss State Secretariat of Migration (SEM) designed to help younger generations reach their potential and support economic growth by offering opportunities for skill development and employment. It aims to enhance the employability of young Nigerians by providing them essential skills in mechanical, electrical and automation engineering. The program, which was launched in 2013, includes 18 months of intensive theoretical and practical training at a dedicated learning center in Nestlé’s Agbara factory. To date, it has graduated close to 230 trainees, with 98% securing employment at Nestlé Nigeria. (Company reports)

Saudia Dairy & Foodstuff Co. (SADAFCO) is reviving its expansion plans in Egypt following the resolution of the country's currency crisis and the reopening of letters of credit, according to its general manager of exports. He said SADAFCO is in the process of selecting an accredited distributor to begin exporting its products to Egypt in 2025. … China’s Weigang Dairy opened its new $78-million manufacturing plant in Nanjing, Jiangsu Province. The facility operates 12 production lines, producing a variety of fluid products, including pasteurized milk, fermented milk, mild-based beverages and ESL milk. Weigang also operates two large dairy farms (holding 15,000 cows) within 10km of the facility. … In the face of national efforts to increase food self-reliance in Saudi Arabia, Almarai Co., the country’s largest dairy company, announced expansion plans worth 18 billion riyals (about US$5 billion) to grow the seafood, poultry and red meat categories in the country. The company said it is building new domestic seafood and beef/lamb production facilities that could be up and running in two years and will also increase poultry production by up to 70% by 2026. (USDEC Middle East/North Africa Office; USDEC China office; Zawya, 12/4/24; Bloomberg, 12/3/24)

Dutch dairy cooperative FrieslandCampina and Belgium-based Milcobel revealed plans to merge. The new, combined entity will have a pro forma revenue of more than €14 billion euros (about US$15 billion), operate in 30 countries and process a total volume of approximately 10 million MT of member milk supplied by nearly 11,000-member dairy farms owned by approximately 16,000-member dairy farmers in the Netherlands, Belgium, Germany and Northern France. A FrieslandCampina statement said the merger “offers further business development opportunities in market segments such as consumer cheese, mozzarella, white dairy products (such as milk, buttermilk and yoghurt), and ingredients, as well as benefits in efficiency and expertise, for example in the area of sustainability.” A detailed proposal for the merger is expected to be finalized in the first half of 2025. The deal is subject to approval by antitrust authorities, FrieslandCampina’s members’ council and Milcobel’s extraordinary meeting of shareholders. (Company reports)

 In a move to boost production, Wisconsin-based Schreiber Foods announced plans for a $211-million expansion at its Carthage, Missouri, cheese plant. The initiative includes construction of a new 168,000-sq.-ft. production facility. The dairy company said the expansion “will enhance Schreiber Foods’ process-cheese capabilities in the United States and support the company’s ongoing efforts to partner with customers and meet increasing demand.” A company statement also said Schreiber is pursuing an opportunity that would increase the size of the project. Construction is expected to begin next month, with completion slated for 2027. (Company reports)

Kerry Co-Operative Creameries Ltd. and Kerry Group shareholders voted this week to support the sale of Kerry Dairy Ireland to the co-op. The divestment, which is valued at €500 million (about US$525 million), was backed by 82% of co-op members. … Qatar-based, vertically integrated dairy producer Baladna and Malaysia’s FGV Holdings called off plans to build a major dairy-farming business in Malaysia. The two companies originally announced they were collaborating in 2021 with plans to invest up to $1 billion. They did not offer details on the reasons for scrapping the venture. (Bloomberg, 12/16/24; Just Food, 12/11/24)

Alibaba-owned Chinese retailer Hema and Sinodis (a Chinese importer/distributor and subsidiary of French dairy processor Savencia) reportedly inked a cooperation agreement under which Sinodis will provide Hema with whipped cream products manufactured in New Zealand. … David Nation, managing director of Dairy Australia, is stepping down effective June 2025. The Dairy Australia Board has engaged executive recruitment firm Pacific Search Partners to manage the process of hiring Nation’s replacement, a process expected to take up to six months. (USDEC China office; Dairy Australia)

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The U.S. Dairy Export Council fosters collaborative industry partnerships with processors, trading companies and others to enhance global demand for U.S. dairy products and ingredients. USDEC is primarily supported by Dairy Management Inc. through the dairy farmer checkoff.