Beyond The Headlines: Lactalis to acquire Uruguayan dairy firm, Fonterra’s farmer incentives for emission cuts

This week in industry news, Lactalis sharpened its market focus with a planned Uruguay dairy firm acquisition and Fonterra bolstered its emission reduction efforts with farmer incentive initiatives with Nestlé and Mars. Meanwhile, KFC shifted its US headquarters and dsm-firmenich highlighted a rise in mycotoxin contamination in animal feed.

Business highlights

Lactalis announced plans to acquire Uruguay-based dairy company Granja Pocha. The French dairy giant will buy all of the shares in the family-owned company, which produces products like cheese and yogurt under its Colonial brand. The acquisition will lead to an additional 60 million liters of milk being processed into dairy products, expanding Lactalis Uruguay’s existing offerings of cheese, fluid milk and milk powder. Financial details of the transaction, which is subject to approval by Uruguay’s competition authority, were not revealed.

Food tech innovator Ever After Foods collaborated with Bühler to help food producers enhance the production of cultivated meat efficiently at mass scale using its proprietary edible packed-bed (EPB) technology platform. The platform can help cultivated meat producers lower production costs by over 90% while enhancing production efficiency. It also offers biological advantages such as enhanced nutritional value and better flavor.

Plant A’s UK launch showcases its chocolate alternative as a scalable confectionery ingredient (Image credit: Daniel Schvarcz).Fast-food restaurant chain KFC announced a decision to relocate its corporate headquarters in the US from Kentucky to Texas. Its parent company Yum Brands’ decision is part of a strategy to establish two headquarters for its popular brands. KFC and Pizza Hut will be based in Plano, Texas, while Taco Bell and Habit Burger & Grill will continue operating from Irvine, California. Nearly 100 KFC US corporate roles will relocate over the next six months, and 90 remote positions will move within 18 months.

Germany-based Planet A Foods launched its chocolate alternative product in the UK market at supermarket chain Aldi. The move aims to advance the availability of its cocoa-free chocolate alternative, ChoViva globally. The group worked with chocolate and confectionary company Wawi-Schokolade to produce peanut butter mini eggs, which it is selling under Aldi’s Dairyfine brand. The firm aims to demonstrate that ChoViva is a scalable ingredient for the confectionery industry.

Arla Foods reported strong financial results in its 2024 financial report, with revenue rising to €13.8 billion (US$14.4 billion) and a net profit of €401 million (US$418.8). The growth was driven by factors like positive performance from brands like Arla and Lurpak and improved consumer purchasing power across Europe. Arla Protein (+36% growth) and Arla Pro (+13.7%) also contributed to significant gains. The firm forecasts revenues between €14.5 (US$15.2)-15.3 (US$16) billion this year, but anticipates pressures on branded growth due to high dairy prices.

Sustainability highlights

Dairy giant Fonterra announced financial incentives for farms meeting specific emissions-related criteria, supported by investments from Nestlé and Mars. The contributions from these separate agreements will be allocated to two key areas: on-farm solutions for farmers who meet the cooperative difference standards for emission reduction and productivity improvements, and an emissions incentive payment. This payment will reward top-performing farms with the lowest emissions, offering an additional 10-25 cents per kg of milk solids produced.

Fonterra, Nestlé and Mars will provide financial incentives to farms that meet specific emissions-related criteria.Sustainable ingredients manufacturer Jungbunzlauer joined the United Nations Global Compact initiative to align its operations and strategies with the Ten Principles of the UN Global Compact in the areas of human rights, labor, environment, and anti-corruption and to act in support of UN goals and issues embodied in the Sustainable Development Goals. The move strengthens the company’s focus on reducing emissions, minimizing resource use, ensuring a safe work environment, delivering sustainable products, and promoting ethical practices.

Feed safety highlights

dsm-firmenich’s mycotoxin survey from January to December 2024 highlighted the growing global risk of mycotoxin contamination in animal feed. It revealed that all six major mycotoxins aflatoxin, zearalenone, vomitoxin, fumonisins, T-2 mycotoxin, and ochratoxin A increased in comparison to 2023. The survey emphasized the need for continuous monitoring and multi-strategy risk management to protect animal health, agricultural productivity, and food safety.