Briefs: Arla Foods, Fonterra and Parmalat

Arla goes global with Castello​​​​Arla Foods says it will phase out production of its Rosenborg mould cheese brand and replace it with the Castello range, acquired last year, as part of a new strategy to push profitability in its global cheese operations.​​ The company said that its European sales and marketing divisions were already in the process of amending their operations for the switch as part of the group's plan of focusing on a reduced but stronger number of brands. The same process will also be rolled out in both the US and Canada, though the transfer is expected by the group to be more of a gradual process. "Although Rosenborg has achieved a strong position, particularly in North America, when it came to selecting a global brand for Arla Foods' future mould cheese business, the choice fell on Castello,"​ said Jørgen Staarup Christensen, who heads the group mould cheese segment Despite the plans to consolidate global cheese production, Christensen said the company remained focused on accommodating some local brands. "The Nordic markets are so large that we cannot cover all nuances and consumer preferences through one brand only, so the Høng and Kvibille brands will continue,"​ he stated. "In the​ USA​, Saga has a strong position, but in a lower price category than Rosenborg. The brand, therefore, will continue within this price category."​​ Fonterra expects farmer payout rise ​​ New Zealand-based dairy cooperative Fonterra says it expects to lift its forecast of its payout to member farmers for milksolids by 50 cents to NZ$6.90 per KG for the current season. Group chairman Henry van der Hayden said the proposed payout hike reflected the increased production output from its farmers findings its way onto current market for higher priced milk. While reflecting the increased milk prices, the value component of the total NZ$6.90 payout, which accounts for 20 cents, had not been changed due to processing difficulties. "The value component of the forecast remains the same,"​ van der Hayden said. "This part of the business continues to be impacted negatively by reduced margins which are a direct result of the higher commodity prices.​ Fonterra's chief executive officer Andrew Ferrier said the cooperative was beginning to witness the expected supply response to high cxommodity prices, "In particular we're seeing growth in​ United States​ skim milk powder production,"​ he stated. "We think this will factor into the market over the short to medium term and will bring a gradual softening to the market."​ Parmalat responds to anti-trust enquiry ​​Parmalat continues to work with Italian antitrust authorities following the recovery of share capital in Newlat last October. The company, which is continuing to recover from a 2003 bankruptcy scandal while under another administration, said the Italian Antitrust Authority has been concerned with the Newlat acquisition since 1999. Upon recovering Newlat's shares last year, the company had been required to offload the venture by 30 October 2007, though according to local press reports, has called for a delay to better manage debts linked to Newlat . However, the company said in a statement that it was complying as best it could with the anti-trust Authority's requests and therefore remained in contact with the regulator on the issue. "Parmalat is working in order to provide all necessary information to clarify the reasons for which the sale of Newlat has not taken place within the fixed timing,"​ the company stated. "Parmalat also is committed to propose all possible solutions aiming to comply with the Antitrust Act within the terms provided for under the same."​