Dairy giant pushes for more colostrum

By LIAM DANN

Fonterra plans to ramp up its production of the high valued milk product colostrum and is calling on farmers to get behind a new collection scheme.

The outbreak of the Sars virus last year boosted Chinese market demand for Fonterra's colostrum product by over five times the forecasted figures.

Early indications are that global demand will be even higher this year and will continue to grow, says shareholder relations manager Rodd Hodgson.

"Our network people are telling me that there are new colostrum products going into the market in both the United States and Asia that will continue to drive demand," he said.

Liquid colostrum is taken from the first four milkings of pasture-fed non-immunised cows during the 48 hours after the birth of their calves. It supplies the calf with its first antibodies for protection against bacteria and viruses.

Fonterra has committed to a minimum three-year colostrum collection programme, which will be expanded to the South Island this season.

As well as providing early season cash flow, there were other benefits to farmers who took part in the scheme, Mr Hodgson said.

Fonterra will pay $168/kg for 0.75 per cent strength colostrum, a 5 per cent increase on last year, with a premium for higher strength colostrum.

Collection in the North Island will be available to farms in the Waikato, Bay of Plenty, Manawatu and Hawkes Bay, and in the South Island to farms in Canterbury, Otago and Southland, depending on economic viability of loads. Fonterra is also offering farmers who register for the scheme a chance to win travel vouchers.

* China Daily has reported that Fonterra is in the final phase of its deal to buy a 39 per cent stake in the Sanlu dairy group. Sources said the deal was likely to be settled this month.

Fonterra said yesterday that it was making "encouraging progress" but still working through the details.

After the deal, Fonterra will be the second largest shareholder in the Chinese dairy company.