Page 6 - Food&Drink Business magazine October 2022

NEWS
Fonterra to retain Australian business
NEW Zealand dairy co-operative Fonterra will retain its Australian operations, CEO Miles Hurrell announced on the release of the dairy giant’s FY22 results. The co-op had a “good year” despite increased costs from supply chain volatility Hurrell said.
“These results demonstrate that our decisions relating to product mix, market diversification, quality products and resilient supply chain, mean the co-op is able to deliver both a strong milk price and robust financial performance in a tough global operating environment,” Hurrell added .
On the release of its FY21 results, the co-op announced it was looking to offload its Australian operations as it moved into a phase of asset evaluation.
In Australia, Fonterra owns brands Western Star butter, Perfect Italiano and Mainland cheese, as well as licence to produce some Bega branded products.
“We’ve looked at a number of options for our Australian business and have decided that it’s in the co-op’s best interests to maintain full ownership.
“Australia plays an important role in our consumer strategy with a number of common and complementary brands and products and as a destination for our New Zealand milk solids. The business is going well, and it will play a key role in helping us get to our 2030 strategic targets,” he said.
The main 2030 target is a return of around $1 billion to shareholdersandunitholders. ✷
Fonterra CEO Miles Hurrell said Australia plays an “important role” for the co-op.
Norco: 170 jobs to go
LEFT: (L-R) Norco GM Manufacturing Adrian Kings and CEO Michael Hampson at Norco’s ice cream factory after the devastating floods.
grants. And I met with the Norco CEO [Michael Hampson] to talk about what we could do together to keep the factory open and keep these jobs going, so it is disappointing to see that Norco has said that it’s very likely those workers will be stood down despite the funding that we’re offering.
“I would certainly like to think that jobs can be found for each of these Norco workers, if the worst does happen and the factory closes. We’ve been in very regular contact with both Norco management and the unions that cover the workers there, preparing for this.”
“The reality is that those workers, most of them, were going to need to find other employment anyway because even if Norco had received the maximum amount that they sought, realistically, it’s going to take some time to rebuild that factory, and those workers would need to find other employment,” he said.
Norco said it continued to have a “positive dialogue” with the government and was hopeful it could secure a better outcome “for our workforce, our farmers, and the broader Lismore community”. ✷
AUSTRALIA’S largest dairy co-operative, Norco, said it would have to retrench
170 employees, after failing to secure the financial support it was seeking from the federal government for its flood recovery. A further 70 jobs could also be lost if adequate funding wasn’t guaranteed, the co-op said.
On 9 September, federal minister for emergency management Senator Murray Watt was in Lismore to announce the six recipients of the Anchor Business Support Grant Program NSW, including Norco, which was allocated almost $35 million.
A Norco spokesperson said,
“We estimate the total cost of the flood to Norco to be $141.8 million. This includes restoring our facilities to how they were pre-floods, the cost of clean-up and damage, inventory, and workforce costs, as well as further flood mitigation works.
“While we welcome and appreciate the $34.7 million from the governments, it falls well short of what we need to safeguard the factory’s future,” they said.
Watt told ABC North Coast Breakfast he was surprised Norco made the redundancy announcement so soon after the grants were announced.
Watt said, “I was in Lismore to announce these anchor
Maggie Beer sells St David Dairy
MAGGIE Beer Holdings (MBH) has sold one of its two dairy assets, St David Dairy, to Goulburn Valley Creamery for $1.6 million.
MBH announced in May it was looking to offload its dairy assets after an internal strategic review deemed them to be non core assets.
Managing director and CEO Chantale Millard said St David Dairy was an iconic Melbourne brand and MBH was pleased the sale would see a seamless transition with all staff retained under the new owners.
Goulburn Valley Creamery
said it would invest in the business and brand.
New St David Dairy CEO Mancel Hickey said, “I am incredibly pleased to be taking on the leadership of a business that I know extremely well, with a positive future that I am passionate about.
“We will strengthen
St David Dairy’s reputation for high quality, great tasting products with a refreshed approach to our range, customer service and overall
way of doing business. “I want to ensure the
company’s proud tradition and position as Melbourne’s only micro-dairy is maintained and thrives for years to come.” ✷
6 | Food&Drink business | October 2022 | www.foodanddrinkbusiness.com.au