75-657: Sanlu Group CO., Ltd. ( SJZSGCZ ) was a Chinese dairy products company based in Xinhua District , Shijiazhuang , the capital city of Hebei . It produced one of the oldest and most popular brands of infant formula in China. New Zealand 's Fonterra owned 43% of Sanlu. In September 2008, it was involved in an adulterated powdered milk scandal , affecting some 294,000 Chinese infants and killing six. Their infant formula had been adulterated with melamine , which can cause kidney stones and other complications. It received
150-468: A milk allergy . People who experience lactose intolerance usually avoid milk and other lactose-containing dairy products, which may cause mild side effects , such as abdominal pain, bloating, diarrhea, gas, and nausea. Such individuals may use non-dairy milk substitutes . The American Institute for Cancer Research (AICR), World Cancer Research Fund International (WCRF), Cancer Council Australia (CCA) and Cancer Research UK have stated that there
225-427: A 25% discount to the freely traded value. The third step, titled "Trading Among Farmers", involves more far-reaching change to Fonterra's capital structure. The co-operative would no longer be obliged to issue or redeem shares at a price established via an independent valuation process. Instead, farmers would buy or sell shares among themselves at market prices through a farmer-only share trading market. This would have
300-529: A 40 by 40-metre banner reading 'Fonterra Climate Crime'. Greenpeace was protesting about Fonterra's use of brown coal ( lignite ) at the nearby Edendale Fonterra plant. Greenpeace alleged that the Edendale plant will burn 179,000 tonnes of lignite, which will release over 250,000 tonnes of carbon emissions. In response to the protest, Fonterra said, "We use 13.9 percent less energy to produce each tonne of export product than we did in 2003. That's equivalent to
375-582: A 43% equity stake in the Chinese dairy by injecting ¥ 864 million. The joint venture company started trading in 2006. The majority 56% stake is owned by Shijiazhuang Three Deers Limited ( 石家庄三鹿有限公司 ). In February 2006, the group opened a dairy plant in Tangshan with an annual capacity of 200,000 tons of powdered milk. At the time of signing the joint venture contract with Fonterra, the company declared it would invest 3 billion yuan for external growth, to form
450-472: A bankruptcy order from Shijiazhuang Court on 24 December 2008, and several of its top managers were sentenced to long prison terms. The company began as Shijiazhuang Dairy Company (SDC) on 16 February 1956. After several acquisitions in 1995, Sanlu Group was formed in 1996. Tian Wenhua, then general manager of SDC, became President and general manager of Sanlu. Under Tian, Sanlu led the Chinese powdered milk market for 13 consecutive years in terms of sales. Tian
525-433: A controlling interest. The aim was to give more access to funds for global growth. Praised by some as a bold move which would allow better access to outside capital, the proposals encountered significant opposition from both farmer shareholders and the government (who would be required to pass enabling legislation). Despite including a range of safeguards, farmers were clearly concerned at the risk of losing control; in what
600-528: A global commitment to protecting the environment. Sustainability, good environmental practice and environmental improvement are cornerstones of Fonterra's environmental commitment." Fonterra claims to have a number of initiatives such as the Dairying and Clean Streams Accord , relating to environmental protection to achieve this policy. In December 2011, the Green Party questioned Fonterra's credibility and
675-487: A heart-healthy eating pattern and choosing reduced-fat dairy over full-fat dairy reduces risk for some, but not all, cardiovascular risk factors". In 2019 the National Heart Foundation of Australia published a position statement on full fat dairy products, "Based on current evidence, there is not enough evidence to recommend full fat over reduced fat products or reduced fat over full fat products for
750-541: A higher payout to dairy farmers. The first two steps of capital structure change received good support from farmer shareholders at Fonterra's annual meeting in November 2009. The first step allowed farmers to hold shares above their level of annual milk production; farmers could now own an additional 20% of "dry" shares (i.e. up to a maximum of 1.2 shares per kgMS). There were also enhanced incentives for farmers to hold shares even if their production falls. The rules about
825-527: A move to address non-compliance with regional council dairy effluent rules. The 2012 independent audit spurred further progress in this area with Fonterra announcing that suppliers will be required to complete fencing of Accord waterways by June 2013. Whether this will occur is yet to be seen. In February 2008, the inaugural Fonterra Environmentalist of the Year was announced at the Beehive . The Award continues
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#1732765642149900-600: A national industrial network over the next three years. In April 2006, Sanlu acquired a liquid milk production base in Weifang , Shandong, capable of producing 300,000 tons of liquid milk every year, at an outlay of 400 million yuan. In October of the same year, the company invested in a production facility with a capacity of 100,000 tons of lactic acid bacteria drink and yoghurt in Xinxiang , Henan, for 120 million yuan. In 2007, its sales reached ¥10 billion. Milk powder sales of
975-748: A partnership between Keep New Zealand Beautiful and Fonterra. Fonterra is also a Corporate Sponsor of the Society and each year teams of staff from the company's manufacturing sites participate in the Keep New Zealand Beautiful Clean Up Week campaign, clearing rubbish from around roadsides, sports fields, parks and beaches. These activities have been criticised as token however as they have limited impacts on preventing stock from entering waterways and in assisting farmer to implement more effective fertiliser regimes that could cut farmers costs and improve water quality. Fonterra
1050-639: A result of hormones". In 2024, Cancer Research UK stated "there is no reliable evidence that casein or hormones in dairy causes cancer in people". The American Medical Association (AMA) recommends that people replace full-fat dairy products with nonfat and low-fat dairy products. In 2017, the AMA stated that there is no high-quality clinical evidence that cheese consumption lowers the risk of cardiovascular disease. In 2021, they stated that "taken together, replacing full-fat dairy products with nonfat and low-fat dairy products and other sources of unsaturated fat shifts
1125-533: A sustainable supply of palm kernel "and ensuring we do not support deforestation, directly or indirectly." Fonterra is a member of the Roundtable for Sustainable Palm Oil to ensure it was informed or sustainability issues in South-East Asia and "to actively contribute to more robust sustainability certification systems." Fonterra was also the subject of Greenpeace Aotearoa New Zealand protests off
1200-671: A trend of consolidation, where the co-operatives merged and became larger and fewer in number. By the end of the 1990s, there were only four co-operatives nationwide: the Waikato-based New Zealand Dairy Group , the Taranaki-based Kiwi Co-operative Dairies , Westland Milk Products , and Tatua Co-operative Dairy Company . Fonterra was formed in 2001 from the merger of the two largest co-operatives, New Zealand Dairy Group and Kiwi Co-operative Dairies, together with
1275-584: Is "insufficient evidence to draw any firm conclusions as to whether exposure to dietary IGF-1 is associated with an increased incidence of cancer in consumers". The COC also stated it is unlikely that there would be absorption of intact IGF-1 from food by most consumers. A 2019 review concluded that higher-quality research was needed to characterise valid associations between dairy consumption and risk of and/or cancer-related mortality. A 2021 umbrella review found strong evidence that consumption of dairy products decreases risk of colorectal cancer. Fermented dairy
1350-514: Is New Zealand's largest producer of biofuel, processing a waste stream from casein manufacture into bio-ethanol. The company produces around 20 million litres of premium ethanol annually. Since 2004, Fonterra has produced ethanol from whey, a by-product of casein, in the Edgecumbe, Tirau and Reporoa plants. In 2008, Fonterra began supplying Gull Petroleum with ethanol from its Edgecumbe plant. The fuel has significant environmental benefits as it
1425-965: Is a significant cause of climate change, and loss of bio-diversity. Greenpeace campaign director Chris Harris said only 4 per cent of palm oil came from sustainable sites. Greenpeace stated that forests were being cleared for the planting of the trees that produce palm oil. In August 2016, Fonterra announced a new palm products sourcing standard that was developed in consultation with key supply partners, and following discussions with Greenpeace that began in December 2015. "The new standard requires Fonterra to purchase on segregated supply palm oil by 2018, and to work with suppliers of palm products to ensure that plans are in place for full traceability to plantation by 2018", said Fonterra's director of social responsibility, Carolyn Mortland. On 17 November 2009, Greenpeace members protested at Solid Energy 's New Vale opencast lignite mine near Gore, New Zealand , by unfurling
1500-409: Is associated with significantly decreased bladder cancer and colorectal cancer risk. A 2023 review found no association between consumption of dairy products and breast cancer . The British Dietetic Association have described the idea that milk promotes hormone related cancerous tumour growth as a myth, stating "no link between dairy containing diets and risk of cancer or promoting cancer growth as
1575-552: Is exported). It also operates a fast-moving consumer goods business for dairy products, Fonterra Brands. Fonterra has a number of subsidiaries and joint-venture companies operating in markets around the world. In 2005, the company purchased a large factory in Dennington, Victoria , Australia, from Nestlé , after they moved out of the collection of milk from farmers and the manufacture of powdered milk in Australia. Also in 2005
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#17327656421491650-450: Is no conclusive evidence. Fermented and low-fat dairy products are associated with a decreased risk of diabetes . Consumption of dairy products are also associated with a decreased risk of gout . A 2023 review found that higher intake of dairy products is significantly associated with a lower risk of inflammatory bowel disease . Some groups avoid dairy products for non-health-related reasons. Some religions restrict or do not allow
1725-575: Is renewable and biodegradable. In July 2016, Fonterra announced that their tanker fleet was switching to ZBioD (Z Energy's biodiesel fuel) as a foundation customer. Chief Operating Officer Global Operations, Robert Spurway said "the move to biodiesel has the potential to reduce emissions for the tankers using it up to four per cent each year, and the partnership is an important milestone for Fonterra." In 2006, Forest and Bird asked Fonterra to 'clean up its act', instead of obtaining consent to continue to discharge 8,500 cubic metres per day of wastewater into
1800-560: Is required by Fonterra to protect streams and that evaluating success in this area may be better carried out by an independent third party auditor. In July 2007, the Green Party called on Fonterra to use financial penalties on its suppliers who were " dirty dairying ", and to particularly penalise the 'recidivist polluters' the Crafar Farms . In 2010, Fonterra launched its every farm every year initiative. Fonterra plans to check every farm's effluent management infrastructure every year in
1875-414: Is strong evidence that consumption of dairy products decreases risk of colorectal cancer . The AICR, WCRF, CCA and Prostate Cancer UK have stated that there is limited but suggestive evidence that dairy products increase risk of prostate cancer . The American Cancer Society (ACS) have stated that because dairy products "may lower the risk of some cancers and possibly increase the risk of others,
1950-604: Is the sixth-largest dairy company in the world as of 2022, as well as the largest in the Southern Hemisphere . Fonterra was established in October 2001 following the merger of the country's two largest dairy co-operatives, New Zealand Dairy Group (NZDG) and Kiwi Cooperative Dairies, with the New Zealand Dairy Board . The name Fonterra comes from Latin fons de terra , meaning " spring from
2025-474: Is the current chairperson and in March 2020, he foreshadowed that he would step down in November 2020. In June 2020, Peter McBride was announced as Monaghan's successor. In November 2007, the board of directors announced a two-year consultation programme regarding their preferred capital re-structuring option: putting the business operations in a separate publicly listed company, with the co-operative maintaining
2100-637: The 2022 Russian invasion of Ukraine . The company had exported NZ$ 240 million worth of produce to Russia in 2021. On 21 March, Fonterra closed its office in Moscow and withdrew from its joint venture with Russian company Unifood . In mid May 2024, Fonterra announced plans to sell its global consumer business as part of a shift towards becoming a global business-to-business supplier of dairy nutrition products. The company's consumer business brands included Anchor , Mainland , Kapiti , Anlene, Anmum, Fernleaf, Western Star, and Perfect Italiano; which comprise 15% of
2175-545: The Manawatu River . Fonterra responded to Forest and Bird's request, agreeing to treat wastewater it discharges into the Manawatu River, greatly reducing its impact on the river. Treatment will be phased in so that by 2015 the discharge will be treated to a level where the water will be fit to swim in year-round. In 2010, Fonterra signed a voluntary agreement with local councils and freezing works to clean up
2250-495: The National Administration of Quality Supervision, Inspection and Quarantine said that all 11 samples from Sanlu failed the melamine test. Sanlu, whose products sell at half the price of equivalents on the market, recorded the highest levels of contamination among all the samples tested , at 2,563 ppm . Tian Wenhua ( 田文華 ), Chairman and general manager of Sanlu and Chinese Communist Party Committee Secretary
2325-632: The New Zealand Dairy Board , which had been the marketing and export agent for all the co-operatives. Fonterra effectively has monopsony control of the New Zealand domestic and export dairy industry. The merger was initially turned down by the New Zealand Commerce Commission , but later approved by the New Zealand Government, with subsequent legislation deregulating the dairy industry, allowing for
Sanlu Group - Misplaced Pages Continue
2400-914: The New Zealand Dairy Research Institute (NZDRI) was founded in Palmerston North as part of the Department of Scientific Industrial Research , which was renamed to the Fonterra Research and Development Centre (FRDC) when Fonterra was formed in 2001. FRDC is purportedly one of the largest dairy research centres in the world, and as of 2019, it hosts several hundred engineers, scientists and researchers and holds 350 milk related patents. A large number of technologies involving whey , casein , lactoferrin , nisin , anhydrous milk fat , as well as cheesemaking and milk powder production have been developed at
2475-496: The 75% threshold required for a favourable vote. In May 2021, Fonterra started a consultation process to seek farmer feedback on potential options to change its capital structure. Based on farmer feedback over the consultation period as well as further expert advice, a proposal was put forward in September 2021 to move to a Flexible Shareholding structure, aimed at giving farmers more financial flexibility. In December 2021,
2550-621: The ACS does not make specific recommendations on dairy food consumption for cancer prevention." It has been suggested that consumption of insulin-like growth factor 1 (IGF-1) in dairy products could increase cancer risk, particularly prostate cancer. However, a 2018 review by the Committee on Carcinogenicity of Chemicals in Food, Consumer Products and the Environment (COC) concluded that there
2625-524: The EU, dairy is responsible for 27% of all diet related emissions, on average, while plant-based milks cause 2.5–4.5 times fewer emissions. Fonterra Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy co-operative owned by New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exceeding NZ $ 22 billion, making it New Zealand's largest company. It
2700-630: The Middle East, and most of Latin America and the Caribbean. Low-consumption countries consume under 30 kg per capita per year. These countries are: Senegal, most of Central Africa, and most of East and Southeast Asia. For those with some degree of lactose intolerance , considering the amount of lactose in dairy products can be important to health. Dairy products may upset the digestive system in individuals with lactose intolerance or
2775-635: The New Zealand government on 5 September after the scandal had already hit the Chinese press and after Fonterra directors left China. Three days later, Prime Minister, Helen Clark had Beijing officials alerted directly. Clark accused the company and officials of covering up to avoid an official recall. On 15 September, the company issued a public apology for the contaminated formula; Sanlu was ordered to halt production, and to destroy all unsold and recalled products. Authorities reportedly seized 10,000 tons of product. After testing samples from 491 batches of products sold by all 109 companies producing baby formula,
2850-476: The Port of Tauranga on 16 September 2009 and Port Taranaki on 5 February 2011, where Greenpeace activists invaded ships carrying palm kernel animal feed, destined for dairy farms. Palm kernel imports went from 0.4 tonnes in 1999 to 455,000 tonnes in 2007 and then to 1.1 million tonnes in 2008, one quarter of the world's palm-based animal feed. Greenpeace says that deforestation for the production of palm products
2925-525: The basis of data collected by Fonterra. The integrity of this data was later questioned when a 2012 independent report commissioned by MAF indicated that while Fonterra's survey of farmers suggests that nationally 84% of properties have stock excluded from waterways, an independent audit by MAF revealed a position that only 42% of farms nationally had stock exclusion. The difference in Fonterra's results against those in an independent audit suggest further work
3000-437: The centre. FRDC has a substantial library of over 100,000 cheese starter cultures , which began in the 1930s under Hugh Whitehead . The centre has pioneered research on bacteriophages ; in 1935 a bacteriophage was identified as the cause of failure in cheese starter isolates, and in 1992 the centre sequenced the genome of bacteriophage c2, which was the first whole genome to be sequenced in New Zealand. John Roadley
3075-637: The co-op's total milk solids. Other brands affected by the proposed divestment include its subsidiaries Fonterra Oceania and Fonterra Sri Lanka. In addition, the divestment could affect Fonterra's 17 manufacturing sites including three facilities in New Zealand. On 11 November, Fonterra confirmed that it would be selling its consumer brands including Anchor, Mainland, Kāpiti, Anlene, Anmum, Fernleaf, Western Star, Perfect Italiano. The company also confirmed that it would sell its subsidiaries Fonterra Oceania and Fonterra Sri Lanka, as well as its 17 manufacturing sites including its three New Zealand facilities. In 1927
Sanlu Group - Misplaced Pages Continue
3150-432: The co-operative or increasing/decreasing their milk production. Additionally, Fonterra would set up a special fund that would financially help farmers purchase shares (or retain shares they would otherwise have to sell). The fund would pay farmers for the right to receive dividends and the gain/loss from any changes in value of some of their shares, but the farmer would still be the owner of the shares. The fund would raise
3225-604: The co-operative, which was required to buy the shares back off them. Consequently, Fonterra faced the risk of losing large amounts of share capital through redemptions during times of declining milk production. For instance, after milk production fell during the 2007/08 drought, Fonterra had to pay out $ 742 million of share capital to farmers via redemptions. The capital structure changes also sought to provide greater incentives for farmers to increase their investment in Fonterra shares, helping ensure Fonterra has sufficient share capital to fund profitable business opportunities and drive
3300-452: The co-operative. A key goal of the capital structure changes was to stop large amounts of money washing in and out of Fonterra's balance sheet each year as milk production fluctuates. Under the previous structure, farmers matched their shareholding with their milk production by owning one co-operative share for each kilogram of milksolids (kgMS) produced annually. If their milk production dropped in any season, they could redeem shares back to
3375-669: The company made moves towards purchasing Australian companies Dairy Farmers and National Foods . It also converted its 50 per cent stake in Victoria dairy producer Bonlac to full ownership. At this time $ 1 billion of Fonterra's revenue was from Australian sales, which was 14 per cent of the dairy products it sells around the world. In June 2008, the company acquired the yoghurt and dairy dessert business of Nestlé Australia, which it on-sold to Parmalat Australia in December 2015. In 2010, leaked US embassy cables suggested New Zealand had only sent troops to Iraq in 2003, following
3450-430: The composition of dietary patterns toward higher unsaturated to saturated fat ratios that are associated with better cardiovascular health". In 2017, the National Heart Foundation of New Zealand published an umbrella review which found an "overall neutral effect of dairy on cardiovascular risk for the general population". Their position paper stated that "the evidence overall suggests dairy products can be included in
3525-521: The consumption of dairy products. For example, some scholars of Jainism advocate not consuming any dairy products because dairy is perceived to involve violence against cows. Orthodox Judaism requires that meat and dairy products not be served at the same meal, served or cooked in the same utensils, or stored together, as prescribed in Deuteronomy 14:21. Veganism is the avoidance of all animal products, including dairy products, most often due to
3600-657: The contamination was a criminal act which Fonterra could not have prevented. On 26 September, Fonterra CEO denied that Fonterra is selling its stake of 43% of Shijiazhuang Sanlu Group Co. On 27 September 2008, China Economic Net reported that Sanlu may have been bankrupted and soon be taken over by Beijing Sanyuan Food Company Ltd. In November, it was announced that the Sanyuan Group would acquire 4 of Sanlu's Shijiazhuang plants, and plants in Tangshan, Shandong and Henan , and would assume some of Sanlu's debt. Consideration
3675-416: The controlling shareholder, hopes to sell its distribution network as a going concern. Four Sanlu executives went on trial on 31 December 2008 charged with producing and selling fake or substandard products. Tian Wenhua, former general manager, former deputy general managers Wang Yuliang and Hang Zhiqi, and Wu Jusheng, a former head of Sanlu's milk division appeared in court. Tian pleaded guilty to her role in
3750-421: The destruction of tropical forests as it is a waste by-product with almost no commercial value. A spokesperson John Hartnell stated that "Not one millimetre of forest is being cleared just to feed dairy cows". Fonterra says it shares community concern about tropical deforestation , "which in some cases has been driven by the establishment of palm oil plantations". Fonterra says it has been proactive in ensuring
3825-527: The effect of making Fonterra shares permanent capital, providing the co-operative with more confidence to invest in long-term projects without fear that some of its share capital might be needed to fund redemptions in future years. As part of the changes, farmers would have greater flexibility with their Fonterra shareholding. The maximum shareholding would be 2 times production (up from the 1.2 times approved in step one) and farmers would have up to three years to comply with shareholding rules when entering/exiting
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#17327656421493900-455: The effectiveness of the self-auditing approach given the wide discrepancy between Fonterra's claims and an independent audit of Dairying and Clean Streams Accord. In 2003, Fonterra became a signatory to the Dairying and Clean Streams Accord , which sets a timeframe for the improvement of water quality on farms. Progress on the Accord goals is reported by the signatories in March of each year on
3975-621: The ethics regarding how dairy products are produced. The ethical reasons for avoiding meat and dairy products include how dairy is produced, how the animals are handled, and the environmental effect of dairy production. According to a report of the United Nations' Food and Agriculture Organization in 2010 the dairy sector accounted for 4 percent of global human-made greenhouse gas emissions. Growing awareness of dairy products' environmental impact, specifically greenhouse gas emissions, has led to many people reducing or avoiding dairy. In
4050-457: The export of dairy products to be undertaken by any company. The two smaller co-operatives, Tatua and Westland (which would later be acquired by Yili Group in 2019), did not join Fonterra, instead remaining independent. The company has an annual revenue of around NZ$ 22 billion. Its core business consists of exporting dairy products under the NZMP brand (95% of its New Zealand production
4125-623: The factory. To that end, on 8 January 2008, it was awarded second prize at the 2007 National Scientific Techniques Awards in the category of 'Innovative infant formula research and other related techniques'. A number of its products were exempt from government inspection for having passed government quality checks three times in succession. Sanlu is one of the largest employers in Shijiazhuang , with close to 10,000 people on its payroll. In September 2008, Sanlu came to international attention due to product concerns regarding its infant formula, which
4200-1472: The fat level, and possible addition of the bacteria Streptococcus lactis and Leuconostoc citrovorum . Milk can be broken down into several different categories based on type of product produced, including cream, butter, cheese, infant formula, and yogurt. Milk varies in fat content. Skim milk is milk with zero fat, while whole milk products contain fat. Milk is an ingredient in many confectioneries. Milk can be added to chocolate to produce milk chocolate . Butter , mostly milk fat, produced by churning cream Fermented milk products include: Yogurt , milk fermented by thermophilic bacteria , mainly Streptococcus salivarius ssp. thermophilus and Lactobacillus delbrueckii ssp. bulgaricus sometimes with additional bacteria, such as Lactobacillus acidophilus Cheese , produced by coagulating milk, separating curds from whey , and letting it ripen, generally with bacteria , and sometimes also with certain molds . Rates of dairy consumption vary widely worldwide. High-consumption countries consume more than 150 kilograms (330 lb) per capita per year. These countries are: Argentina, Armenia, Australia, Costa Rica, most European countries, Israel, Kyrgyzstan, North America and Pakistan. Medium-consumption countries consume 30 kilograms (66 lb) to 150 kg per capita per year. These countries are: India, Iran, Japan, Kenya, Mexico, Mongolia, New Zealand, North and Southern Africa, most of
4275-695: The general population. For people with elevated cholesterol and those with existing coronary heart disease, reduced fat products are recommended." The position statement also noted that the "evidence for milk, yoghurt and cheese does not extend to butter, cream, ice-cream and dairy-based desserts; these products should be avoided in a heart healthy eating pattern". Recent reviews of randomized controlled trials have found that dairy intake from cheese, milk and yogurt does not have detrimental effects on markers of cardiometabolic health. Consumption of dairy products such as low-fat and whole milk have been associated with an increased acne risk, however, as of 2022 there
4350-483: The group ranked number 1 for 15 consecutive years, with a market share of 18 percent. The company prided itself on its stringent quality control procedures, boasting its extremely rigorous tests on its products. "Made in China", a special edition of the CCTV program " Quality Reports Weekly ", aired on 2 September 2007, and focused on the company. It claimed over 1,000 different tests were carried out before its products leave
4425-694: The initial invasion, so Fonterra would keep valuable Oil for Food contracts. New Zealand was not a member of the coalition which supported invasion of the country, but later sent combat engineers for mine clearance and other such tasks. In 2019, the Tip Top ice cream brand was sold for NZ$ 380 million to Froneri , a global joint venture between Nestlé and PAI Partners . In September 2019, Fonterra agreed to sell its 50% stake in DFE Pharma for NZ$ 633 million ($ 400.37 million). In late February 2022, Fonterra suspended exports to Russia in protest of
4500-511: The land". In New Zealand, as in most Western countries, dairy co-operatives have long been the main organisational structure in the industry. The first dairy co-operative was established in Otago in 1871. By 1920, there were 600 dairy processing factories of which about 85% were owned by co-operatives. In the 1930s there were around 500 co-operatives but after World War II , improved transportation, processing technologies and energy systems led to
4575-435: The largest formula seller in China for a continuous 15-year period. Richard McGregor, author of The Party: The Secret World of China's Communist Rulers , said that Sanlu became "an invaluable asset for a city otherwise struggling to attract industry and investment on a par with China's premier metropolises." In December 2005, a joint venture agreement was signed which involved New Zealand dairy cooperative Fonterra taking
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#17327656421494650-456: The money it needed to pay farmer shareholders by selling investment units to investors. Fonterra would require the fund to target "friendly" investors such as sharemilkers, retired farmers and offshore Fonterra suppliers, although the public and institutions would also be able to participate. The "Trading Among Farmers" proposal went before a special meeting on 30 June 2010 and received 89% support from farmer shareholders voting, easily exceeding
4725-869: The new Flexible Shareholding structure received a strong mandate with [85.16%] of total farmer votes cast in support of the recommendation and [82.65%] participation based on milk solids voted. Fonterra is continuing to work with the Government on how the Flexible Shareholding structure can be given effect under the Dairy Industry Restructuring Act, the legislation that enabled the formation of Fonterra back in 2001. Dairying stock entering waterways due to lack of fencing and poor use of fertilisers are major contributors to water pollution in New Zealand. Fonterra's environmental policy states that "Fonterra shall demonstrate
4800-406: The pricing of end of season share transactions were also tidied up. The second step changed the way Fonterra shares were valued to reflect that share ownership is restricted to farmers only. Previously, Fonterra shares were valued on a theoretical basis as if the shares were freely traded like a public share. An independent valuator subsequently assessed that the restricted market value should be at
4875-443: The region's largest purchaser of milk, was ordered to halt production, many small dairy farmers were put into hardship. On 24 September, Fonterra announced that it had written down the carrying value of its investment by NZ$ 139 million (two-thirds), reflecting the costs of product recall and the impairment of the 'Sanlu' brand "as a direct consequence of the criminal contamination of milk in China". Chairman Henry van der Heyden said that
4950-399: The river. Fonterra has since encouraged its farmers to clean up their waste and plant trees alongside waterways. In August 2009, Greenpeace claimed that Fonterra was implicated in the destruction of Indonesian and Malaysian rainforests , causing deaths of orangutans and increased global greenhouse gas emissions . In response, Federated Farmers said the use of palm kernel does not cause
5025-593: The scandal, and expressed her remorse, and also called for China to consider embracing the European Union 's standards on melamine. Wang, who had leaped off a building in a suicide attempt, offered his apology and remorse: "When I think of the children who were harmed... I feel extreme inadequacy towards these sick children and their parents." On 22 January 2009, Tian was sentenced to life imprisonment , while other Sanlu executives received sentences of five to fifteen years. Two other men were sentenced to death. Tian
5100-444: The world such as yogurt , cheese , milk and butter . A facility that produces dairy products is a dairy . Dairy products are consumed worldwide to varying degrees. Some people avoid some or all dairy products because of lactose intolerance , veganism , environmental concerns , other health reasons or beliefs. Milk is produced after optional homogenization or pasteurization , in several grades after standardization of
5175-430: Was also ordered to pay a fine of 20 million yuan (US$ 2.9 million). Despite its bankruptcy, Sanlu was fined 50 million yuan ($ 7.3 million). Dairy products Dairy products or milk products , also known as lacticinia , are food products made from (or containing) milk . The most common dairy animals are cow , water buffalo , nanny goat , and ewe . Dairy products include common grocery store food around
5250-653: Was considered one of the most successful entrepreneurs in China for her role in building the company. She was named deputy chairman of the China Dairy Industry Association ( 中国乳制品工业协会 ), and elected to the National Committee of the Chinese People's Political Consultative Conference . The company was a collective; managers and workers both owned shares of Sanlu. Sanlu became Shijiazhuang's largest taxpayer since it had become
5325-493: Was discovered to have been contaminated with melamine , a non-alimentary chemical which causes kidney stones. An estimated 300,000 babies became ill, and six cases resulted in death. The Xinhua News Agency reported that Sanlu received its first complaints about baby formula in December 2007. Fonterra was allegedly only alerted to the contamination on 2 August. There was no immediate trade recall. Fonterra said that local administrators refused an official recall. Fonterra notified
5400-409: Was not disclosed, but sum is said to be of the order of ¥800 million. On 19 December, Sanlu secured a loan of ¥902 million to pay medical expenses of and compensation to children affected by tainted powdered milk it produced. It was announced on 25 December that Shijiazhuang court accepted a creditor's bankruptcy petition against Sanlu, which reportedly had net debt of ¥1.1 billion. Shijiazhuang city,
5475-411: Was sometimes described as a demutualization . The board responded in 2008 by shelving the November 2007 proposal and continuing consultation and discussion with farmer shareholders. In September 2009, the board announced a three-step process to revamp Fonterra's capital structure. The new approach abandoned thoughts of a public listing of Fonterra shares and retained 100% farmer control and ownership of
5550-555: Was stripped of her party and functional posts during an extraordinary meeting of the Hebei provincial standing committee of the Chinese Communist Party . Four Shijiazhuang officials, including vice mayor in charge of food and agriculture, Zhang Fawang, were reportedly removed from office. Mayor Ji Chuntang reportedly resigned on 17 September; Tian was charged under Articles 144 and 150 of the criminal code. Since Sanlu,
5625-565: Was the inaugural chairman of Fonterra's board. He foreshadowed his resignation in August 2002 and was succeeded, after the next annual general meeting, by Henry van der Heyden . Van der Heyden held the chairmanship until December 2012. John Wilson succeeded van der Heyden and announced his resignation in July 2018 due to illness (he died in January 2019 aged 54). John Monaghan succeeded Wilson. He
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