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Commodity Pricing

With milk and butter acting as the lifeblood for the dairy industry, we look at the politics and pricing affecting the supply chain.

Blue chips beat dairy blues with A-brands and innovation: Rabobank

06-Feb-2012 - Leading fast-moving consumer goods (FMCG) firms active in dairy have been particularly successful in increasing margins since 2006, despite rising commodity costs and a hostile economic environment, according to a new report from Rabobank.

Tumbling dairy prices up in latest Fonterra Global Dairy Trade auction

19-Jan-2012 - The majority of internationally traded commodity dairy products traded in the latest Fonterra Global Dairy Trade auction event sold for higher prices, arresting a series of price slides dating back to December 6.

News in brief

Nestlé accelerates Chinese dairy development

11-Jan-2012 - Nestlé has announced plans to construct a new dairy farming institute in Shuangcheng, in the Heilongijiang province of China.

US dairy sector beat fiscal doldrums in 2010, IDFA

03-Jan-2012 - 2010 world dairy market prices recovered from lows caused by the world financial crisis the year before, according to a new report from the US-based International Dairy Foods Association (IDFA).

Our 2011 dairy digest: relive the stories that made a milk splash this year...

23-Dec-2011 - From killer ice cream to Nestlé and Danone cancelling or suspending local operations in China, 2011 was a roller-coaster ride for the world dairy industry. So fasten your seatbelts and enjoy our whirlwind tour of the year's top news tattle...

Grease is the word for Swedish butter smugglers…

21-Dec-2011 - But it didn’t have groove and meaning for the two men when they were stopped by Norwegian police for trying to smuggle butter into the country.

Chr. Hansen targets Eastern cottage cheese chic

16-Dec-2011 - Chr. Hansen claims its new Fresco 3000 culture series will increase customer’s cheese yield, reduce production costs and provide greater protection against bacteriophage attacks during fermentation, as the company targets growing consumption in Eastern Europe and Russia.

Chavez ramps-up rhetoric as Parmalat apologises for 'milk hoarding' response

02-Dec-2011 - Parmalat has issued a public apology to Venezuelan president Hugo Chavez in the wake of a row over the company’s initial response to accusations of dairy product hoarding in the country.

Despite ‘headwinds’ Glanbia could hit acquisition trail again in 2012, analyst

16-Nov-2011 - Irish dairy ingredients and cheese manufacturer Glanbia could be on the look-out for acquisitions again in 2012, according to an analyst based in the country.

Proliant pioneers lower cost whey and lactose alternative

04-Nov-2011 - US firm Proliant Dairy claims to have developed a new dairy ingredient that can successfully replace expensive whey powder, lactose and skimmed milk powder in a variety of food systems.

‘Cost-saving’ dairy bulking agent for chocolate and bakery to go global

04-Nov-2011 - Arla Foods Ingredients has announced that a dairy bulking agent for chocolate and bakery formulation that it said offers cost savings on sweet whey powder (SWP) is set for global roll-out in 2012.

Welsh dairy sector ‘under siege’, politician insists

03-Nov-2011 - The Welsh dairy sector is “under siege”, with unprecedented numbers of farmers quitting the sector in recent years, in large part due to unfair contracts with processors.

Danone feels the heat with ‘flat’ Russian sales

18-Oct-2011 - Last year's severe summer drought in Russia has hit Danone’s third quarter (Q3) 2011 dairy sales in the country, with the French company forced to raise prices to end consumers due to higher ingredients costs.

Discounters' dilemma as Wiseman ups milk margins

29-Sep-2011 - Milk price discounters may have to raise prices above the £1 for four pints mark that has held for two years, as Robert Wiseman Dairies pushes through improved margins.

We are not ‘milking the poor’ in Bangladesh, Arla insists

28-Sep-2011 - Arla has defended itself after a charity report attacked its corporate social responsibility record in Bangladesh, and accused it of benefiting unfairly from EU subsidies that impoverished local producers.

New yogurt stabilisers address soaring gelatin prices: Cargill

20-Sep-2011 - Cargill has unveiled a new stabiliser system that it says will help dairy food manufacturers avoid the rising cost of gelatin in yogurt production.

Rabobank takes cold comfort in EU cheese

07-Sep-2011 - The EU cheese market is changing from a “comfortable place” where most producers are assured of growth to a cut-throat environment where rising raw milk prices are threatening margins.

Dairy Farmers of America backs bipartisan dairy reform proposal

16-Aug-2011 - Controversial proposals to reform the US dairy market have gained the backing of leading dairy marketing cooperative, Dairy Farmers of America (DFA).

New Zealand joins Australia in OK’ing milk pricing behaviour

04-Aug-2011 - The New Zealand Commerce Commission says there are no grounds for an investigation of wholesale and retail milk pricing practices in the New Zealand market that is 90% dominated by Fonterra.

Dairy reform Bill would damage exports, warn processors

18-Jul-2011 - Draft legislation designed to create more stability in the US dairy industry would damage exports and threaten jobs, dairy processors have claimed.

Global dairy prices slide in latest Fonterra auction

06-Jul-2011 - International dairy prices have taken another tumble at the latest Fonterra auction, dropping to their lowest level so far this year.

Dairy prices expected to dip not dive

22-Jun-2011 - Global dairy prices could dip in the coming months as Chinese and Russian demand falls but any downward movement is likely to be limited, according to Rabobank.

Dairy Crest warns of higher milk and oil costs

09-Feb-2011 - Dairy Crest has met its profit expectations for the nine months to the end of 2010 but has warned of higher input costs over the coming year.

Irish dairy industry set for global export success after 2015

01-Dec-2010 - Ireland’s dairy industry is set for significant growth after milk quotas are abolished in 2015, according to Kevin Lane, chief executive of the Irish Dairy Board (IDB).

IDFA outlines surge in US dairy exports

06-Aug-2010 - The International Dairy Foods Association (IDFA) has reported a “dramatic surge” in US dairy exports over the past three months.