April’s top stories: Post Holdings-Michael Foods deal; Arla Foods’ China lab

Post Holdings signs deal to acquire Michael Foods for $2.45bn

US-based Post Holdings announced that it will take over egg distributor Michael Foods for $2.45bn on a cash-free, debt-free basis from affiliates of private investors GS Capital Partners, Thomas H Lee Partners and others.

Michael Foods provides value-added egg products, refrigerated potato products and cheese and other dairy case products under Papetti’s, All Whites, Better ‘n Eggs, Easy Eggs, Simply Potatoes and Crystal Farms brands.

The deal will be the largest for Post to date and the acquired entity will continue to operate under the current management.

Arla Foods to establish new dairy innovation lab in China

Arla Foods, a Swedish-Danish cooperative, announced plans to construct a new innovation lab in Beijing, China, to develop cheeses and other dairy products that are suitable for the Chinese market.

The company will establish the innovation lab in the China-Denmark Milk Technology Cooperation Centre in Beijing with an investment DKK10m ($1.8m).

Arla is currently working with China’s Mengniu Dairy Group to increase the strength of the Chinese diary industry in terms of milk quality, food safety and quality control.

Symrise offers $1.8bn to buy French ingredients maker Diana

Symrise made a €1.3bn ($1.8bn) offer to take over French food ingredient maker Diana from private equity firm Ardian, a move which will significantly expand its position in the flavour and nutrition segments.

Diana is one of the leading providers of natural and functional food solutions for food, pet food, nutraceuticals, aquaculture and cosmetics manufacturers.

The Vannes-headquartered firm operates production facilities and sales offices in 23 countries in Europe, North and Latin America, as well as Asia, with a workforce of over 2,000.

Stevia First to trial agricultural drones to boost stevia leaf productivity

US-based Stevia First announced that it is planning to conduct a field-scale study using agricultural drones to provide brief overnight illumination, in a bid to achieve dramatic gains in stevia leaf and steviol glycoside yields.

Under laboratory conditions, using brief overnight illumination to interrupt Stevia’s photoperiod has delivered significant gains in leaf biomass and steviol glycoside content, the company said.

According to researchers, brief overnight illumination of stevia with red LED light can mimic long-day growth and prevent flowering, which leads to increases in leaf mass and steviol glycoside content.

House of Lords EU Committee calls for action on food waste

The House of Lords European Union Committee called for increased efforts to tackle food waste in Europe, saying that each year at least 90 million tonnes of food is wasted across the EU.

In its report, the committee said the 15 million tonnes of food wasted in the UK each year represents a loss of at least £5bn a year to business.

The committee found that attempts to reduce food waste across the EU are ‘fragmented and untargeted’, and is calling on the new European Commission, which will be appointed in November this year, to publish a five-year strategy to lower food waste within six months of taking charge.

ADM to retain cocoa press operations, divest chocolate business

Archer Daniels Midland (ADM) announced that it will retain the majority of its cocoa press operations but will pursue the sale of its chocolate business.

The company has approached several advisors to assist on the proposed sale process.

ADM had extensive negotiations with a potential buyer over the sale of its global cocoa and chocolate unit; however, the talks were unsuccessful.

Wilmar and Great Wall form sugar JV in Myanmar

It was announced in April that Wilmar Sugar (Myanmar), a subsidiary of Singapore-based agribusiness firm Wilmar International, is to establish a joint venture (JV) with Myanmar-based Great Wall Food Stuff Industry.

Great Wall – Wilmar Holdings, the new entity in which Wilmar will hold a 55% interest, will produce and sell sugar and sugar by-products.

The deal marks Wilmar’s first foray into Myanmar’s sugar market.

Arla Foods and EGM Walhorn plan to merge operations

Dairy cooperatives Arla Foods amba and Eupener Genossenschaftsmolkerei Walhorn (EGM Walhorn) announced plans to merge their operations.

The proposed merger will allow Arla to pursue its growth strategy together with EGM Walhorn.

It will enable EGM Walhorn to continue its cooperative traditions as well as have its own representatives on the board of directors and representatives at Arla Foods.