Freedom spending spree starts
Freedom Foods Group is kick starting the first of its significant capital expenditure plans since its recent $200 million capital raising – a $29 million dairy processing capability upgrade at Shepparton, Victoria.
The investment will almost double its milk processing capacity to 500 million litres a year, including increasing its ultra high temperature (UHT) milk filling capacity to 300 million litres to meet demand in domestic and export markets.
It will also increase flexibility to meet demand for other value-added products streams, including functional and medical grade dairy-based beverages, drinking yoghurt and cream to be packaged at Shepparton and Ingleburn in Sydney.
The company is also expanding UHT filling capability at Ingleburn.
Freedom says it is also well progressed on the first stage of a nutritionals platform to enable it to manufacture industrial grade pure protein components for use in branded formula products.
Commissioning of the nutritionals platform is due in September, while an additional drying plant will be commissioned next year.
Freedom’s expanded dairy capacity will be supported by supply relationships with southern NSW and Victorian farmers, and the company’s joint venture business, Australian Fresh Milk Holdings (Moxey Farms), in Central West NSW.
New Wellard chairman
The chairman of West Australian-based livestock export shipper, Wellard, David Griffiths, has stepped down, but will continue as a director for another two months.
Fellow board member and non-executive director, John Klepec, replaces Mr Griffiths, who has signalled his plans to retire by the end of this financial year.
Mr Griffiths joined Wellard’s board as a director and chairman in November 2015.
A statement issued by the company’s operations director, Fred Troncone, paid tribute to the outgoing chairman’s tireless work “during the recent very difficult market conditions” and thanked Mr Griffiths for his energy and dedication in the role.
New to Capilano board
Major Brisbane-based honey producer, Capilano, has welcomed a new board member this week – accountant and consumer goods business executive, Valentina Tripp.
Ms Tripp has extensive experience in market development, international supply chains and corporate strategy.
Her 20-plus years in executive management and professional services roles span agribusinesses, fast moving consumer goods production and retailing, including time as executive director of Simplott Australia and a director of financial services advisory group, KPMG.
She is currently chairman of Fairtrade Australia and New Zealand.
Ridley hurt by Red Lea
Livestock feed processing company, Ridley Corporation, is flagging a $6 million to $7m hit to its earnings before interest and tax (EBIT)because of the collapse of Sydney-based Red Lea Chickens’ which had supplied processed poultry by-products to be rendered into feed products.
Red Lea, which reduced its processing output late last year, went into administration on March 29.
It has left Ridley’s Maroota rendering plant in the Hawkesbury Valley without a significant supply source until July at least.
About a third of the EBIT loss relates to a downturn in raw material supplies in the first half of 2017-18 which triggered a flow-on hit to Ridley’s product supply chain and processing costs and last month extended to a cut in shifts at Maroota.
Ridley operates 19 mills in Queensland, NSW, Victoria and South Australia to produce up to 1.9 million tonnes of finished feeds annually, and is one of Australia’s largest grain processors.
Managing director, Tim Hart, said the company was working on several initiatives to develop new revenue streams for the Maroota site, including processing whole mackerel caught in NSW coastal waters for the pet food and aquafeed sectors.
Rice leadership training
Ricegrowers’ Association of Australia (RGA) has launched the Rice Industry Leadership Program 2018–2020.
It will span three development courses targeting varying levels of experience – an introduction to the rice industry; foundations of leadership, and established leaders.
The foundations of leadership course commences in late May, an eight day program developed with the Australian Rural Leadership Foundation.
It targets rice growers and industry representatives who demonstrate interest in pursuing leadership opportunities or a commitment to the broader rice industry.
RGA president, Jeremy Morton, encouraged rice growers interested in pursuing leadership opportunities to apply.
The leadership program is supported by the federal government’s $5 million Leadership in Agricultural Industries Fund, RGA, Rice Extension, AgriFutures Australia, SunRice and the NSW Rice Marketing Board.
For information, or to apply, contact RGA project Co-ordinator, Ainsley Massina, amassina@rga.org.au or on 0428 859 214.
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