Agribusiness buzz in brief

The trans-Tasman specialist milk business posted a 33pc revenue leap to $1.57 billion, with earnings before interest, tax, depreciation and amortisation of $502m, up 33pc on the previous year.

A2 credited its impressive result to strong growth in its Chinese label infant formula lines now sold in more than 19,000 stores, with revenue more than doubling to $308m.

Liquid milk sales achieved solid growth in Australia and the US, increasing almost 30pc across the group.

US milk revenue was up 91pc as distribution expanded into 20,300 stores.

As coronavirus lockdowns hit early this year A2 scored a sales surge in the March quarter as consumers stocked up on food lines, but some of this behaviour had "unwound" in the June quarter.

The company ended the year with about $134m of inventory in stock, which was more than in past years, partly reflecting a decision to carry higher levels of stock as a safety buffer because of the uncertainties around COVID-19 and potential production disruption.

Chief executive officer Geoffrey Babidge expected sales to remain a dynamic situation as the pandemic continued.

The SunRice Group's stockfeed and pet food subsidiary CopRice will buy the dairy and beef business of Riverbank Stockfeeds in Victoria.

The deal includes Riverbank's feed mill at Leongatha and its dairy business across Gippsland and South West Victoria.

The purchase and associated working capital requirements and upgrade costs at the Leongatha site are expected to cost less than $10 million.

Coprice's new manufacturing capacity in the Gippsland will complement its Victorian facilities at Cobden in the state's South West and Tongala in the Goulburn Valley.

It also has plants at Leeton and Coleambally in southern NSW.

The acquisition process is expected to take some months.

Stockfeed maker Ridley Corporation has announced a $21.6 non-cash impairment against its Novacq aquaculture feed business prior to releasing full year results next week.

Although the efficacy of its Novacq prawn feed operation had been well demonstrated and the product was being sold commercially, Ridley confirmed delays in developing and installing processing technology had hindered the scale up of feed production and restricted sales volumes.

"As a consequence and coupled with the general economic uncertainty prevailing in domestic and world markets the company will raise a non-cash impairment to be reported in the financial results for 2019-20 on August 26," said managing director Quenton Hildebrand.

He said the impairments would not impact the outlook of the business as a whole.

US grain business giant Archer Daniels Midland Company has filed an anti-dumping complaint against Australian and European wheat gluten exports into Canada.

ADM which has its own wheat gluten plant in Quebec has alleged gluten exporters from Austria, Belgium, France, Germany, Lithuania and Australia were dumping in the Canadian market at prices below the cost of production and below what wheat gluten sells for in their home markets.

Canada's Border Service Agency confirmed it was investigating to determine whether certain wheat gluten from Australia and other countries was being imported at unfair prices into Canada.

The Canadian International Trade Tribunal (CITT) also will play a role in the anti-dumping investigation, starting preliminary inquiries to determine whether imports were harming Canadian producers.

Country airline group Regional Express is rumoured to be discussing taking some of Virgin Australia's Boeing 737 aircraft.

Rex has already announced it will start flying jets between east coast capital cities.

Following its restructuring and subsequent sale, Virgin Australia, which had almost 80 Boeing 737-800s on its books, is downsizing to a smaller fleet, possibly to about 40.

Rex services have been well known for relying on a turboprop fleet of up to 60 Saab 340 aircraft.