Dairy

Confidence in dairy is now higher than it is for other commodities, but farmers in drought-stricken areas are seeing potential profits from higher milk prices being eroded by the costs of water and feed imports.

New Zealand dairy giant flags writedowns of more than NZ$800m ahead of its full-year results in September when it will report its second ever annual loss.

Fonterra’s strategic review continues with a Victorian factory closure and possible sales of Brazilian JV and Chinese farms.

Milltrust Agricultural Investments has taken a 24.9% stake in a new entity managing a portfolio of eight dairy farms across the North and South Islands.

The outlook for this year is worse for many, but the overall picture is of a resilient ag sector with a lot still to offer investors.

Elio Leoni Sceti, co-founder of lead investor The Craftory, says the investment into NotCo reflects a strategy designed to harness a 'seismic shift' in the relationship between brands and consumers over the past five years.

The firm is consolidating a group of sustainable farmland assets in Denmark, which now total 1,605 hectares in the country.

Regal will also help raise funds for the Kilter Water Fund, while two of its directors will join Kilter’s board.

The sale is the latest move in an ongoing review following the announcement of the cooperative’s first ever annual loss in September 2018.

The Roc Capital and Wattle Hill vehicle raises its offer to A$21.00 per share for the Australian company amid speculation of a rival bid from listed dairy producer Bega Cheese.